The Token Network Review: Another pointless DeFi scheme
The Token Network operates in the cryptocurrency MLM niche. The company fails to provide a corporate address on its website.
Heading up The Token Network is Project Manager Benjamin Kang:
According to Kang’s LinkedIn profile he’s based out of Germany. This is presumably where The Token Network is operated from.
Throughout most of the 2010s Kang participated in and promoted various poker tournaments.
In mid 2020 Kang appears to have decided he wanted to be a crypto bro. Cue The Token Network’s launch on or around October 2020.
As far as I can tell Kang has neither MLM or cryptocurrency executive experience prior to The Token Network.
Read on for a full review of The Token Network’s MLM opportunity.
The Token Network’s Products
The Token Network has no retailable products or services, with affiliates only able to market The Token Network affiliate membership itself.
The Token Network’s Compensation Plan
The Token Network affiliates invest in TTN and TTNP tokens.
TTN has a limited supply of 10.000 token and offers the following benefits (if staked on TheToken.Network): receives 22.6% of all fees generated on the platform, receives 2% of interest TTNP accrued on TTNP liquidity staking pools and 5% for all TTNP LPs actively staked, receives TTNP airdrop after TTN presale and preferential presale purchasing option of TTNP before listing (there will be no public presale of TTNP token) , receives priority to exclusive campaigns to high profile liquidity demands.
TTNP has a limited supply of 100.000.000 tokens and is the utility token for the platform. TTNP is providing liquidity for tokenized values and is needed to repay liquidity granted.
TTNP receives 95% of the interest accrued in TTNP liquidity staking pools.
If you’re still with me and didn’t commit suicide after reading all that, here’s a simpler explanation:
The Token Network affiliates invest in TTN and TTNP on the representation of a return.
That return is paid primary through collected fees, and a bunch of other crypto babble crap that’s not worth wasting time explaining.
Here are The Token Network investment package tiers:
- TTN Starter – €225 EUR
- TTN Lite – €550 EUR
- TTN Pro – €1000 EUR
- TTN Team Plus – €2500 EUR
- TTN Elite – €5000 EUR
- TTN Elite Plus – €10,000 EUR
- TTN Platinum – €25,000 EUR
- TTN Centurion – €50,000 EUR
Note that The Token Network’s compensation documentation doesn’t specify how many tokens are received per investment tier.
On the MLM side of things, The Token Network pays affiliates to recruit new affiliate investors.
Direct Recruitment Commissions
The Token Network affiliates receive a direct recruitment commission per affiliate recruited:
- recruit a TTN Starter affiliate and receive €25 EUR
- recruit a TTN Lite affiliate and receive €60 EUR
- recruit a TTN Pro affiliate and receive €115 EUR
- recruit a TTN Team Plus affiliate and receive €300 EUR
- recruit a TTN Elite affiliate and receive €600 EUR
- recruit a TTN Elite Plus affiliate and receive €1250 EUR
- recruit a TTN Platinum affiliate and receive €3200 EUR
- recruit a TTN Centurion affiliate and receive €6500 EUR
Residual Commissions
The Token Network pays residual commissions via a series of TeamBooster pools.
TeamBooster pools are funded by an unspecified percentage of company-wide investment.
There are ten TeamBooster pools:
- Starter
- Base
- Step
- Minor
- Advanced
- Business
- Premier
- Major
- Master
- Champion
TeamBooster pool tier qualification is calculated weekly. It is based off of personal recruitment efforts and that of those you recruit (unilevel).
The initial amount required to qualify for the Starter tier is €2500 EUR.
This includes personal investment and personally recruited affiliate investment volume.
From there it’s a sliding scale. Qualification for each of the higher nine TeamBooster pool tiers is dynamically calculated based on total volume generated by TeamBooster qualified affiliates.
Note that each week up to 15% of each pool is moved up a pool tier or down a pool tier accordingly.
TeamBooster qualification volume is counted at a rate of 50% of personally generated investment volume (what you and those you recruit invest), and up to 100% of investment volume generated by those you recruit.
- recruit one affiliate and 10% of their generated investment volume counts towards your TeamBooster pool qualification
- recruit six affiliates and 20% of their generated investment volume counts towards your TeamBooster pool qualification
- recruit eleven affiliates and 30% of their generated investment volume counts towards your TeamBooster pool qualification
- recruit sixteen affiliates and 40% of their generated investment volume counts towards your TeamBooster pool qualification
- recruit twenty-one affiliates and 50% of their generated investment volume counts towards your TeamBooster pool qualification
- recruit twenty-six affiliates and 60% of their generated investment volume counts towards your TeamBooster pool qualification
- recruit thirty-one affiliates and 70% of their generated investment volume counts towards your TeamBooster pool qualification
- recruit thirty-six affiliates and 80% of their generated investment volume counts towards your TeamBooster pool qualification
- recruit forty-one affiliates and 90% of their generated investment volume counts towards your TeamBooster pool qualification
- recruit forty-six affiliates and 100% of their generated investment volume counts towards your TeamBooster pool qualification
Note that TeamBooster pool volume is accumulative, meaning counted volume does not reset to zero each week.
Presumably the TeamBooster split is 10% across the ten pools however this isn’t specified.
First TeamBooster Qualification Bonus
When a The Token Network affiliate qualifies for the TeamBooster Bonus, they receive a 15% bonus on their paid pool bonus for their first week.
TeamBooster Bonus
If a The Token Network affiliate generates 10% or more of total TeamBooster team volume, they receive a 10% TeamBooster volume bonus.
TeamBooster Pool Tier Bonus
When a The Token Network affiliate qualifies for a higher TeamBooster pool, they receive a “cash bonus”.
It appears this is paid out any time an affiliate qualifies for a higher pool, regardless of whether they were at that pool tier before.
Note the specific cash bonus amount per pool tier qualified for isn’t specified.
Joining The Token Network
The Token Network affiliate membership is tied to the purchase of an investment package:
- TTN Starter – €225 EUR
- TTN Lite – €550 EUR
- TTN Pro – €1000 EUR
- TTN Team Plus – €2500 EUR
- TTN Elite – €5000 EUR
- TTN Elite Plus – €10,000 EUR
- TTN Platinum – €25,000 EUR
- TTN Centurion – €50,000 EUR
Any additional fees are not disclosed.
Conclusion
The Token Network is yet another “solution without a problem” MLM crypto DeFi scheme.
Before we even get into the business model;
Users of the platform will be able to tokenize their assets in the second token TTNP.
Tokenize what assets? And more importantly, why?
Does tokenizing my assets achieve any practical purpose? And if I was going to perform this pointless task, why not just set up an ERC-20 shittoken in 30 seconds at little to no cost?
Why does The Token Network even exist?
As one can imagine, looking at the recent DeFi investment value as well as our imminent real world use case, it is not unrealistic to see a 10x growth within months and even a 100x growth within the first year of operation.
We imagine both tokens to be an extremely profitable investment for all initial investors.
Oh right. The typical invest, *somethingsomething*, lambos to the moon MLM crypto bullshit.
And to market said bullshit, The Token Network hopes to rope in celebrities and corporate partners for a bit of legitimacy via association.
Our true potential will only be calculable once we get publicity upon introduction of high profile use cases with both celebrities and well known corporate partners.
At a base level The Token Network is offering securities by way of expected passive returns through their TTN and TTNP tokens.
The Token Network makes no representation it has registered its securities offering BaFin, Germany’s top financial regulator, or financial regulators in any other country.
This means that irrespective of anything else, The Token Network is committing securities fraud and operating illegally.
Beyond that we have investment and pyramid fraud.
The Token Network operates as a Ponzi scheme by recycling invested funds to pay token withdrawals.
This happens through an internal exchange.
Pyramid fraud exists by way of every commission paid through The Token Network’s compensation plan being tied to recruitment.
As with all MLM Ponzi schemes, once affiliate recruitment dries up so too will new investment.
This will leave The Token Network unable to pay ROI withdrawal requests, eventually leading to collapse.
The math behind Ponzi schemes guarantees that when they collapse, the majority of participants lose money.
