Tornado Rising Review: Three-tier cycler + crypto investment fraud
Tornado Rising provides no information on its website about who owns or runs the company.
Tornado Rising’s website domain (“tornadorising.com”) was registered in March 2018.
Billy Alexander is listed as the owner, through a Georgia state address in the US.
Up until 2017, Alexander (right) was promoting World Ventures.
After WorldVentures Alexander appears to have taken an interest in cryptocurrency.
Read on for a full review of the Tornado Rising MLM opportunity.
Tornado Rising’s Products
Tornado Rising has no retailable products or services, with affiliates only able to market Tornado Rising affiliate membership itself.
Bundled with with Tornado Rising affiliate membership are adcredits, which can be used to display advertising to other Tornado Rising affiliates.
Tornado Rising’s Compensation Plan
Tornado Rising affiliates purchase positions in a four-tier 2×1 matrix cycler.
A 2×1 matrix is simple in nature, requiring only two positions to be filled to generate a cycle commission.
These positions can be filled via direct or indirect recruitment, however each Tornado Rising affiliate must recruit two affiliates to fill their first tier matrix.
Cycle commissions across Tornado Rising’s four-tier cycler are as follows:
- Level 1 (positions cost $35) – $20 cycle commission and cycles into Level 2
- Level 2 – $25 cycle commission and cycles into Level 3
- Level 3 – $30 cycle commission and cycles into Level 4
- Level 4 – $70 cycle commission, generates a new Level 1 position and creates a new 2×4 matrix position
The 2×4 matrix costs $35 a month, the first payment of which is deducted from Level 4 in the 2×1 cycler.
A 2×4 matrix places an affiliate at the top of a matrix, with two positions directly under them:
Whereas a 2×1 matrix is only one level deep, a 2×4 matrix extends down four levels (three are shown above).
Positions in the matrix are filled as Tornado Rising affiliates cycle out of Level 4 of the 2×1 cycler.
As positions in the 2×4 matrix are filled, cycle commissions are paid out as followed:
- Level 1 – $10 commission per position filled (2 positions)
- Level 2 – $5 commission per position filled (4 positions)
- Level 3 – $5 commission per position filled (8 positions)
- Level 4 – $5 commission per position filled (16 positions)
The above commissions are tied to $35 monthly fee payments. Both in order to qualify to receive commissions and to generate the commissions themselves.
Tornado Rising solicits cryptocurrency investment on the promise of a passive return.
Specific return amounts aren’t provided, but the company does advise it takes 20% of any withdrawal requests.
Referral commissions are paid on invested cryptocurrency 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.
Tornado Rising caps payable unilevel team levels at five.
Referral commissions on masternode investment is paid out across these five levels as follows:
- level 1 (personally recruited affiliates) – 5%
- level 2 – 2%
- levels 3 to 5 – 1%
Joining Tornado Rising
Tornado Rising affiliate membership is tied to $35 cycler position purchase.
Full participation in Tornado Rising’s income opportunity costs $35 a month.
Tornado Rising combines a Ponzi cycler, pyramid recruitment and cryptocurrency investment fraud.
Tornado Rising’s 2×1 matrix cycler offered is $145 made off an initial $30 investment.
The $145 is paid out of subsequent investment, making this component of Tornado Rising a Ponzi scheme.
The bundled adcredits are neither here nor there, with the SEC long having established that adcredits don’t legitimize Ponzi schemes.
The 2×4 matrix component is more of a pyramid scheme, as ongoing $35 payments by recruited affiliates are required in order to generate commissions.
Tornado Rising’s “Masternode Pool” sees the company solicit investment on the promise of passive returns.
This and the 2×1 cycler constitute securities offering, neither of which Tornado Rising or Billy Alexander are registered to offer in the US (or anywhere else in the world).
Ultimately all three components of Tornado Rising’s business model are tied to recruitment.
Once this recruitment dies down, the 2×1 cycler, 2×4 matrix and crypto investment scheme collapse.
The math behind Ponzi and pyramid schemes guarantees that when they collapse, the majority of participants lose money.