Sacuwa Review: SAC token wallet app Ponzi scheme
Sacuwa provides no information on their website about who owns or runs the business.
The Sacuwa website domain (“sacuwa.com”) was privately registered on May 16th, 2019.
At the time of publication Alexa cites Vietnam as the only significant source of traffic to Sacuwa’s website (39%).
This isn’t enough to suggest Sacuwa is based out of Vietnam, but does demonstrate where the majority of promotion is taking place.
Vietnam has emerged as a hotbed for cryptocurrency fraud over the past few years.
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.
Sacuwa has no retailable products or services, with affiliates only able to market Sacuwa affiliate membership itself.
Sacuwa’s Compensation Plan
Sacuwa affiliates invest $100 or more in SAC tokens, on the promise of an advertised 8% to 16% monthly return.
Returns are paid through Sacuwa’s wallet app in SAC tokens.
The company sets an internal SAC token value, which it arbitrarily increases.
By putting in a withdrawal request, Sacuwa affiliates are thus able to exchange their invested SAC tokens for more than they initially invested.
Sacuwa Affiliate Ranks
There are six affiliate ranks within Sacuwa’s compensation plan.
Along with their respective qualification criteria, they are as follows:
- Bronze – sign up as a Sacuwa affiliate
- Silver – generate at least $200,000 in downline investment volume
- Gold – have at least three Silver ranked downline affiliates, each in a separate unilevel team leg
- Platinum – have at least three Gold ranked downline affiliates, each in a separate unilevel team leg
- Diamond – have at least three Platinum ranked downline affiliates, each in a separate unilevel team leg
- Elite – have at least three Diamond ranked downline affiliates, each in a separate unilevel team leg
Secura pays residual commissions via a unilevel compensation structure.
A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):
If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.
If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.
Sacuwa caps payable unilevel team levels at twenty-one.
Residual commissions are paid as a percentage of returns paid to unilevel team affiliates across these twenty-one levels as follows:
- level 1 (personally recruited affiliates) – 100% (1:1 match)
- level 2 – 50%
- levels 3 to 21 – 5%
Secura rewards Silver and higher ranked affiliates with a percentage of returns earned by their entire unilevel team:
- Silver affiliates earn a 5% Rank Bonus
- Gold affiliates earn a 10% Rank Bonus
- Platinum affiliates earn a 15% Rank Bonus
- Diamond affiliates earn a 20% Rank Bonus
- Elite affiliates earn 5% of returns paid to all affiliates company-wide
Sacuwa affiliate membership is free.
Participation in the attached income opportunity however requires a minimum $100 investment in SAC tokens.
Sacuwa operates on a downloadable wallet app.
As described by the company itself;
A “wallet” is basically the equivalent of a bank account. It allows you to receive bitcoins and other coins, store them, and then send them to others.
Sacuwa affiliates send the company’s owners real money in exchange for SAC tokens.
SAC tokens are not publicly tradeable and cost Sacuwa’s owners little to nothing to generate.
This is reflected in Sacuwa’s seemingly generous residual commission rates.
Sacuwa increase the internal SAC token value, leading affiliate investors to believe the company is generating money out of thin air.
Withdrawals are placed through the app wallet, thus allowing a Secura affiliate to withdraw tokens at a higher rate than they invested at.
It’s important to now that returns paid in SAC tokens aren’t actual money. Actual money isn’t realized unless a Sacuwa affiliate is able to cash out their SAC tokens.
In a nutshell, Sacuwa is operating a Ponzi points model through an app.
Sacuwa claims to generate external revenue through their AI-Arbo trading bot.
The AI-Arbo (AI social Trading Algorithm) is machine learning technology and social trading algorithms developed by SACUWA’s data scientists and PhD Mathematics specialists.
This is the cliche ruse that every mobile app wallet Ponzi scheme uses.
By offering a passive investment opportunity, Sacuwa are clearly making a securities offering to their affiliates.
At the time of publication Sacuwa provides no evidence it has registered its securities offering in any jurisdiction.
This means that irrespective of everything else, the company is operating illegally.
Typically what you see in these wallet app schemes is social media marketing videos and/or reports, purportedly showing trading of some sort taking place.
Firstly this isn’t a substitute for legally required regulatory registration and investor disclosures.
Secondly, it’s not actual proof of external money being used to pay affiliates.
If I take $100 out of my wallet and give it to you, I can come up with whatever reason I want to explain where the money came from.
You have no way of verifying it.
Registration with regulators requires app wallet schemes to provide audited accounting – thus proving they are using external revenue to fund affiliate withdrawal requests.
The only reason none of these app wallet scams are registered is, behind the “trading bot” smoke and mirrors, none of them are doing what they say they are.
The only verifiable source of revenue entering Sacuwa is new investment.
Using new investment to pay existing affiliates who cash out SAC tokens makes Sacuwa a Ponzi scheme.
As with all MLM Ponzi schemes, once affiliate recruitment dies down so too will new investment.
This will starve Sacuwa of ROI revenue, eventually prompting a collapse.
The first mobile app wallet Ponzi scheme to launch was Plus Token last year.
Down to the trading bot ruse used, there is materially no difference between Plus Token’s and Sacuwa’s respective business models.
Plus Token collapsed on July 27th. Chinese authorities have pegged investor losses at $2.9 billion USD.
Clone scams rarely grow as big as their predecessors, but the important take-away is the majority of Plus Token affiliate lost money.
Sacuwa isn’t going to play out any different.
Update 4th August 2019 – At the time of this update Sacuwa has pulled its website offline.
This suggests that the short-lived Ponzi scheme has already collapsed.