skill-dragon-logoSkill Dragon launched late last year as a mobile games e-sports venture.

If you’ve never heard of Skill Dragon or have and have been waiting for a BehindMLM review for some time, that’s because promotion of Skill Dragon is pretty low-key.

A visit to the Skill Dragon website reveals a maintenance message that, as I understand it, has been static for months:


Now if I was evaluating Skill Dragon outside of BehindMLM, this is where my due diligence would begin and end. Any MLM company that doesn’t even have a website clearly has something to hide and should be avoided at all costs.

Seeing as this is BehindMLM and you’re expecting an in-depth Skill Dragon review, let’s press on.

Skill Dragon is part of Smart Media Technologies, who previously marketed the YOBSN social media network.

Smart Media Technologies was essentially a recruitment-driven pyramid scheme. YOBSN was merely a ruse to hide recruitment commissions behind, with the social network itself failing to take off.

After police in India arrested top Smart Media Technologies executives in late 2014, Smart Media Technologies went into rapid decline.

Skill Dragon was launched in response to Smart Media Technologies collapsing.

The initial e-games business model failed to catch on and was short-lived. Visit the Skill Dragon website with an affiliate referral code and you’ll see the site is still branded around e-sports gaming, however the current opportunity has been completely revamped.

Today Skill Dragon has nothing to do with mobile e-sports, with the scheme rebooted as a cryptocurrency mining pool.

Skill Dragon affiliates pay $600 to join the company and then $30 a month to remain commission qualified.

Once signed up, affiliates can invest between $500 to $10,000:

  • Level 1 – $500
  • Level 2 – $1000
  • Level 3 -$2000
  • Level 4 – $2500
  • Level 5 – $5000
  • Level 6 – $10,000

At the time of publication there are two tiers of investment, referred to bitcoin and ethereum mining pools.

Investment at Levels 4 to 6 designates a Skill Dragon affiliate as a “Founder”, which provides them access to a Founder’s Pool.

This Founder’s Pool is presumably made up of a percentage of invested funds company-wide, shared between Skill Dragon Founders.

Residual commissions are paid out via a binary compensation structure.

A binary compensation structure places a Skill Dragon affiliate at the top of a binary team, split into two sides (left and right):


The first level of the binary team has two positions, with the second level splitting each of these two positions into another two positions each (4 positions).

In this manner subsequent levels of the binary team are generated as needed, with each level having double the number of positions as the previous level.

Positions in the binary team are filled via direct and indirect recruitment of Skill Dragon affiliates.

Investment volume (including re-investment) is tracked on both sides of the binary, with a commission paid out each time $600 on one side of the binary is matched with $300 on the other.

For every $600 matched with $300 (amounts can be matched on either side of the binary), a Skill Dragon affiliate receives a $50 commission.

Regarding the investment into the bitcoin and ethereum pools, ROIs are paid out daily.

These ROIs are purportedly paid out of cryptocurrency mining, however there is no information about Skill Dragon’s purported mining operations on their website.

As far as a Skill Dragon affiliate is concerned, all they are doing is investing funds and collecting a daily passive ROI.

Irrespective of whether actual mining is taking place or not, this constitutes a securities offering.

This is significant because, according to the Skill Dragon Terms and Conditions, the company is based out of Nevada in the US;

Jurisdiction and venue of any matter not subject to arbitration shall reside exclusively in Carson City, State of Nevada.

There is nothing on the Skill Dragon website suggesting the company has registered its securities offering with the SEC.

The US is currently the second largest source of traffic to the Skill Dragon website, coming at 14.1%.

South Africa is the largest source of traffic at 84.4% and clearly where Skill Dragon is primarily being promoted.

In the Skill Dragon promotional videos I watched for this review, the purported mining operations are represented by familiar “numbers on a screen”.

In essence, you have affiliates believing Skill Dragon is paying them through the backoffice, however most affiliates are “compounding” their earnings at this stage.

Withdrawal requests are low and Skill Dragon is able to keep up appearances.

Remembering that this is the same company that ran the Smart Media Technologies pyramid scheme, there’s a good chance that, while some mining might be taking place, newly invested funds are being used to pay off existing investors.

Note that any new funds used to pay off existing investors would deem Skill Dragon a Ponzi scheme, regardless of what percentage of ROIs paid out were attributable to mining operations.

Worst case scenario there’s no mining going on, best case scenario the ROIs paid out are still likely just recycled funds.

I say this because on top of the mining operations you’ve also got recruitment commissions to consider. This drains available funds for mining operations (on top of withdrawal requests), which drags down the sustainability of Skill Dragon’s daily ROI offering.

They might get away with while the majority of their affiliates are busy reinvesting at close to 100% to get their “gigahash” balances up. However once enough of affiliates start withdrawing what’s represented on their screens as real money, things are going to get messy.

That’s if the SEC don’t shut Skill Dragon down first for offering unregistered securities.

In the event Skill Dragon collapses or a regulator shuts them down, the use of bitcoin to invest in the mining pools means recovery of funds will be difficult.

Great for Skill Dragon management, not so good for the majority of investors who wind up losing money.


Update 12th March 2017 – In early 2017 it was announced Skill Dragon and Dragon Mining will be rebooting as Lifestyle Galaxy.