Tracto Venture Network Review: Tracto Ponzi points scheme
Tracto Venture Network provide no information on their website about who owns or runs the business.
The Tracto Venture Network website domain (“tractoventure.com”) was privately registered on November 4th, 2016.
In a FAQ published on Tracto Venture Network website, the company claims to be an “Australian investment fund and platform”.
A search of the Australian Business Register turns up nothing for Tracto Venture Network.
An address in Sydney provided on the Tracto Venture Network Facebook page belongs to Servo Corp. As per their website, Servo Corp sell virtual office space at Tracto Venture Network’s provided address.
As such it appears Tracto Venture Network’s only corporate connection to Australia is a mailing address.
Further research reveals a video published to Vimeo eight months ago, naming Noel Peter Frith as CEO of the company:
Why this information is not provided on the Tracto Venture Network website is unclear.
As per the description under the video referenced above, Noel Frith is
Fintech Entrepreneur and Investor. Frith have been involved in the cryptocurrency world since 2010 where cryptocurrency is at its infancy. Since then, he has been investing into the cryptocurrency, mining and blockchain.
I wasn’t able to find any independent information verifying these claims.
Although Frith might look like someone hired on Fivver, he does appear to be running Tracto Venture Network.
There’s a video of him on Vimeo speaking at Tracto Venture Network’s opening ceremony late last year, purportedly held in Sydney.
At the time of publication promotion of Tracto Venture Network in Australia seems non-existent. Alexa estimate the primary source of traffic to the Tracto Venture Network website is Indonesia (58%).
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.
Tracto Venture Network Products
Tracto Venture Network has no retailable products or services, with affiliates only able to market Tracto Venture Network affiliate membership itself.
Once signed up Tracto Venture Network affiliates can invest in “tracto”, an internal virtual points Tracto Venture Network arbitrarily assign a value to.
Although represented as a cryptocurrency, tracto is not publicly tradeable and holds no value outside of the Tracto Venture Network MLM opportunity.
A website hosted on the same cluster of servers the Tracto Venture Network website is hosted on has been set up at “tracto.org”.
The website is little more than a placeholder, offering nothing specific about Tracto Venture Network’s tracto points.
The Tracto Venture Network Compensation Plan
Tracto Venture Network affiliates invest in tracto points on the expectation of an advertised ROI.
- Plan A – invest for six months and receive an 8% to 10% monthly ROI
- Plan B – invest for twelve months and receive an 11% to 13% monthly ROI
A minimum of 100 tracto must be invested in via bitcoin. The maximum an affiliate can invest in one transaction is 100,000 tracto.
Monthly ROIs are paid in tracto, which can be converted into bitcoin via an internal exchange.
Tracto Venture Network themselves set the current value of tracto. The current value is not provided on the Tracto Venture Network website.
Direct Referral Commissions
Tracto Venture Network affiliates receive a 20% referral commission on bitcoin invested by personally recruited affiliates.
Residual Referral Commissions
Tracto Venture Network pay affiliates residual referral commissions via a binary compensation structure.
A binary compensation structure places an affiliate at the top of a binary team, split into two sides (left and right):
The first level of the binary team houses two positions. The second level of the binary team is generated by splitting these first two positions into another two positions each (4 positions).
Subsequent levels of the binary team are generated as required, with each new level housing twice as many positions as the previous level.
Positions in the binary team are filled via direct and indirect recruitment of affiliates. Note that there is no limit to how deep a binary team can grow.
Tracto Venture Network track new investment volume on both sides of the binary team.
At the end of each day new investment volume is tallied up and rounded off to the nearest 1000 tracto on both sides.
Matched investment volume on both sides of the binary team generates a residual referral commission of 10%.
Unmatched volume carries over the following day.
Joining Tracto Venture Network
Tracto Venture Network affiliate membership is free. To participate in the attached income opportunity however a minimum bitcoin investment of 100 tracto is required.
Tracto Venture Network do not publicly disclose the current value of tracto.
Conclusion
On their website Tracto Venture Network describe themselves as
a community of early adopters and cryptocurrency enthusiast driven by future returns.
The problem is the source of those returns.
As it stands the only verifiable source of revenue entering Tracto Venture Network is invested affiliate funds.
Using newly invested funds to pay existing Tracto Venture Network affiliates a ROI would make it a Ponzi scheme.
The Tracto website (.org) is designed to look like a legitimate cryptocurrency site, but if you click around you’ll fast realize there’s actually nothing there.
That big Google Play button? Yeah, it doesn’t actually go anywhere.
As an “Australian company”, Tracto Venture Network’s investment opportunity naturally would require registration with the Australian Securities and Investments Commission.
Like the Australian Business Register however, nothing turns up.
Additionally I have serious that Noel Peter Frith is actually running the show. Tracto Venture Network recruitment is all happening offshore in Asia, and I’ve yet to see Frith speak in a video where he’s not reading off a teleprompter or prepared statement on paper.
Meanwhile even if we ignore the fraudulent investment side of Tracto Venture Network, the referral commissions paid out equate to a pyramid scheme.
Points for trying to look legit guys, but this is otherwise the same old Ponzi points business model trotted out.
As with all Ponzi schemes, once affiliate recruitment drops off so too will newly invested funds.
This will starve Tracto Venture Network of funds to pay ROI requests, eventually forcing them to ignore them or close down the internal exchange (ala OneCoin).
Once that happens the usual Ponzi rules apply. The owners and a few top investors make off with the lion’s share of invested funds, leaving the majority of investors with a loss.
Best of luck recovering your stolen bitcoin investment from a rented PO box in Sydney.
Hi there,
I just to let you know Tracto VEnture Network is real Token Coin and list in Coin market cap. I hope you can research more about TRACTO VENTURE NETWORK (TRCT)
Thank you.
19 cents down from a $2 pump high last Oct.
Ah launching an altcoin, the ultimate Ponzi points exit scam.