Primebit Review: Dodgy exchange hidden behind shell company
Primebit fails to provide company ownership or executive information on its website.
Primebit operates from the website domain (“primebit.com”), first registered in 2005. The private registration was last updated on May 17th, 2022.
Primebit represents it is run through “PrimeBit Ltd.” PrimeBit Ltd. is a shell company incorporated through a PO Box in St. Vincent and the Grenadines.
As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.
Primebit offers access to a trading platform.
Primebit’s platform can be accessed over the web, or attached to MT5.
Primebit claims to charge trading fees that are “among lowest on the market”.
Primebit’s Compensation Plan
Primebit’s compensation plan pays on fees collected from users of its trading platform.
- generate $0 to $5 in trading fees and receive a 5% commission rate
- generate $5.01 to $50 in trading fees and receive a 7% commission rate
- generate $50.01 to $500 in trading fees and receive a 12% commission rate
- generate $500 to $5000 in trading fees and receive a 15% commission rate
- generate $5000.01 or more in trading fees and receive a 20% commission rate
- affiliates who complete “individual negotiation” with Primebit receive a 30% commission rate
Trading fee volume is tracked over a rolling 30 day period.
5% is paid on trading volume generated on level 2, that is affiliates recruited by those you recruit.
Primebit’s compensation plan documentation detail san “up to $80” registration bonus.
Up to $80 registration bonus for every user using your referral links.
The more you deposit the bigger the bonus.
Primebit affiliate membership appears to be free.
The biggest concern with trading platform orientated MLM companies is automated trading. This drags a company into securities offering territory, which brings with it stringent regulatory requirements.
As far as I can tell Primebit doesn’t offer automated trading of any kind.
Primebit is more of an exchange with an MLM compensation plan than it is an MLM company.
The problem with Primebit is it comes off as a dodgy exchange, run by persons unknown.
Primebit started off as a run-of-the-mill crypto trading platform in 2019:
Since then they’ve expanded to other offerings:
Owing to its crypto roots, Primebit still only accepts cryptocurrency.
PrimeBit accepts a variety of cryptocurrencies, including BTC, USDT, ETH, LTC, BNB, CAKE, BCH, LINK, XRP, ADA, TRX, ATOM, DASH, DOT, EOS, ONT, ZEC, DAI, XTZ, MATIC, BUSD, PAXG, USDC, and DOGE.
You can’t trade stocks, forex and commodities in cryptocurrency, so it appears either Primebit is either doing something dodgy on the backend or misrepresenting its offering.
At the end of the day Primebit is a dodgy platform run through a shell company in a tax-haven jurisdiction favored by scammers, by persons unknown.
As opposed to being a legitimate trading platform, the way Primebit is set up lends lends itself to money laundering and other illegal activities.
Certainly users of Primebit can expect no consumer protection should the people running it close up shop.
I’m not sure what’s happened over the past few months but Primebit has seen a large reduction in visits to its website:
The US appearing as the second largest source of traffic to Primebit’s website is concerning.
As stated on Primebit’s website:
PrimeBit does not provide services to residents and citizens of certain countries listed in our Terms of Services, including the United States.
That’s obviously baloney. And if they’re lying about that, who knows what else Primebit is lying about.
As an MLM company there’s nothing inherently wrong with Primebit. You sign up traders, you earn on their fees.
As a trading platform however, Primebit should be avoided. It’s 2022, there are a bajillion platforms out there that don’t operate from PO Boxes on tax-haven islands.