Uhuru Tribe Review: UHC Ponzi points scheme
Uhuru Tribe provides no information about who owns or runs the company on their website.
Marketing copy on Uhuru Tribe’s website suggests the company is run by someone from South Africa.
UHURU is a Stokvel that will empower you to change your financial security forever.
A stokvel is
invitation-only clubs of twelve or more people serving as rotating credit unions or saving schemes in South Africa where members contribute fixed sums of money to a central fund on a weekly, fortnightly or monthly basis.
That’s not what Uhuru Tribe is but we’ll get into that later. The important thing to note is the use of South African terminology.
Further research revealed official Uhuru Tribe marketing videos presented by this guy:
I was able to identify this individual as Coenraad “Coenie” Botha.
In another official marketing video, Botha is revealed to be in control of the Uhuru Tribe admin account (click to enlarge):
Thus it follows that Botha owns and runs Uhuru Tribe.
In his Facebook profile, Botha claims to be from Swakopmund, Namibia.
Uhuru Tribe however is using South African bank accounts:
Whether Botha is running Uhuru Tribe from Namibia or South Africa is unclear.
I was unable to put together an MLM history on Botha (right).
In 2013 Botha was the subject of a corruption investigation by Namibia’s Anti-Corruption Commission.
Allegations of corruption saw Botha resign as Chairman of Erongo Red, a Namibian utilities company.
I couldn’t find anything on the outcome of the allegations.
Read on for a full review of Uhuru Tribe’s MLM opportunity.
Uhuru Tribe’s Products
Uhuru Tribe has no retailable products or services, with affiliates only able to market Uhuru Tribe affiliate membership itself.
Uhuru Tribe’s Compensation Plan
Uhuru Tribe offers multiple investment platforms.
Commissions are paid when bitcoin and UHC are deposited into the company and on investment itself.
UHC stands for Uhuru Coins and are points used internally within Uhuru Tribe.
Uhuru Tribe Affiliate Ranks
There are eight affiliate ranks within Uhuru Tribe’s compensation plan.
Along with their respective qualification criteria, they are as follows:
- Members – sign up and continue to pay Uhuru Tribe affiliate membership fees
- Tribesman – personally recruit two affiliates, have at least four Members in your downline and have invested in at least two Fraxion positions
- Elder – personally recruit four affiliates, have at least twenty-five affiliates in your downline (min four Tribesman) and have invested in at least six Fraxion positions
- Headman – personally recruit six affiliates, have at least one hundred and twenty-five affiliates in your downline (min 4 Elders) and have invested in at least twenty-two Fraxion positions
- Clan Chief – personally recruit eight affiliates, have at least six hundred and twenty-five affiliates in your downline (min 4 Headman) and have invested in at least ninety Fraxion positions
- Chief – personally recruit fifteen affiliates, have at least three thousand one hundred and twenty-five affiliates in your downline (min 4 Clan Chiefs) and have invested in at least three hundred and seventy-five Fraxion positions
- Reg Chief – personally recruit twenty-eight affiliates, have at least fifteen thousand six hundred and twenty-five affiliates in your downline (min 4 Chiefs) and have invested in at least one thousand five hundred Fraxion positions
- Head Chief – personally recruit forty affiliates, have at least seventy-eight thousand one hundred and twenty-five affiliates in your downline (min 4 Reg Chiefs) and have invested in at least six thousand Fraxion positions
Fraxion investment positions are explained under “Fraxion Investment” below.
UHC Investment Plans
Uhuru Tribe affiliates deposit bitcoin with Uhuru Tribe in exchange for UHC points.
The current internal UHC exchange rate is not disclosed on Uhuru Tribe’s website.
Once acquired, Uhuru Tribe affiliates are able to invest UHC as per the following plans:
- Starter – invest 25 UHC or more and receive a 0.28% daily ROI for 11 weeks
- Bronze – invest 50 UHC or more and receive a 0.32% daily ROI for 25 weeks
- Silver – invest 250 UHC or more and receive a 0.36% daily ROI for 40 weeks
- Gold – invest 1000 UHC or more and receive a 0.58% daily ROI for 53 weeks
Returns are paid in UHC. After the maturity period affiliates receive the daily ROI amount plus their initial investment.
Uhuru Tribe solicits investment in Fraxion positions for 50 UHC.
Uhuru Tribe marketing represents this is equivalent to $57.50.
The minimum amount of speculation is the equivalent of USD 57.50 in UHURU TRIBE for a Fraxion.
Fraxions are open ended investment positions that pay returns for two and a half years.
Uhuru Trade is a passive investment scheme.
Uhuru Tribe affiliates invest UHC on the promise of weekly returns.
Uhuru Trade doesn’t appear to be any investment limits or maturity period.
FX Trade allows Uhuru Tribe affiliates to invest UHC on the promise of forex returns.
In an official Uhuru Tribe marketing video an average 1.8% weekly FX Trade return is quoted.
Note that Uhuru Tribe affiliates who haven’t kept up to date with their membership fees are charged fees to invest.
Uhuru Tribe 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.
Uhuru Tribe caps payable unilevel team levels at ten.
Residual commissions are paid out as a percentage of BTC and UHC invested as follows:
- level 1 (personally recruited affiliates) – 65%
- level 2 – 10%
- level 3 – 5%
- levels 4 and 5 – 4%
- levels 6 and 7 – 3%
- levels 8 to 10 – 2%
Rank Achievement Bonus
Uhuru Tribe rewards affiliates for qualifying at Tribesman and higher with the following Rank Achievement Bonuses:
- qualify as a Tribesman and receive 15 UHC a month
- qualify as an Elder and receive 60 UHC a month
- qualify as a Headman and receive 240 UHC a month
- qualify as a Clan Chief and receive 960 UHC a month
- qualify as a Chief and receive 3840 UHC a month
- qualify as a Reg Chief and receive 15,360 UHC a month
- qualify as a Head Chief and receive 61,440 UHC a month
Joining Uhuru Tribe
Uhuru Tribe affiliate membership is 2.50 UHC and then 25 UHC a month.
Uhuru Tribe’s marketing material states that the company only accepts bitcoin.
The original Uhuru Tribe MLM opportunity appears to have had nothing to do with cryptocurrency (click to enlarge):
It operated in South African Rand and used matrices to pay commissions, combining both elements of a Ponzi and pyramid scheme.
Today Uhuru Tribe runs a standard Ponzi scheme through their Uhuru Coins points.
UHC is worthless outside of Uhuru Tribe. The company generates UHC on demand at little to no cost.
Through the various investment opportunities offered, Uhuru Tribe affiliates grow their UHC balances.
When they want to withdraw, they do so through an internal exchange.
I’ve seen Uhuru Tribe’s internal exchange referred to as both Coin-X and Uhuru-X.
If a two year old Steemit post is to be believed, shortly after Uhuru Tribe’s launch Uhuru-X was hacked.
Earlier Uhuru Tribe marketing suggests the company was accepting South African Rand for UHC:
Today Uhuru Tribe appears to only accept bitcoin:
UHURU TRIBE ONLY accepts UHURU COINS (UHC) and BITCOINS (BTC) for any form or kind of transaction and in order to make any transaction with us.
Either way, new investment is the only verifiable source of revenue entering Uhuru Tribe.
These funds are used to pay withdrawal requests, at whatever arbitrary internal value Uhuru Tribe assigns UHC.
Thus the use of new investment is used to pay existing Uhuru Tribe affiliates, satisfying the criteria of a Ponzi scheme.
The rest of Uhuru Tribe’s compensation plan is that of a pyramid scheme, paid on the recruitment of new affiliate investors.
Knowing full well their business model is fraudulent, Uhuru Tribe offers up the following pseudo-compliance:
(Uhuru Tribe) IS NOT an MLM (Multi-Level Marketing) Scheme, as it is NOT dependent on the sale of memberships but the participation of its products.
There are no matrixes, binaries and/or any schemes involved, and commissions are earned purely on referrals who make use of the services, while a secondary smaller commission is paid on the referral of your referrals up to the 10th level
(Uhuru Tribe) IS NOT a pyramid or Ponzi scheme as the business is NOT dependent on the recruitment of new business partners to pay its commitments.
These are flat out falsehoods.
Uhuru Tribe utilizes a unilevel compensation structure, making it very much so an MLM company.
As for not being a Ponzi or pyramid scheme, I’ve addressed these falsities above.
Each Uhuru Tribe passive investment scheme is attached to a legitimacy ruse.
In order to operate legally, Uhuru Tribe would need to register its securities offering with financial regulators.
This entails filing audited financial reports, providing the existence of external fund generation.
Despite launching on or around late 2018, to date Uhuru Tribe has failed to do so.
The nature of Ponzi points schemes is that they are able to hold onto invested funds far longer than a traditional Ponzi.
This is because affiliates are encouraged to hoard UHC, as opposed to cashing out.
As previously stated, UHC costs Uhuru Tribe little to nothing to generate. They can literally pump out as many of them as required.
I’ll note that late last year Uhuru Tribe launched CBI on their internal exchange.
CBI is literally a shitcoin with no purpose. Uhuru Tribe doesn’t appear to be doing anything with it at the moment.
Eventually, as with any Ponzi scheme, Uhuru Tribe affiliate withdrawals will exceed new investment.
This will throw the company in deficit, eventually leading to a collapse.
Uhuru Tribe’s collapse will either be literally when there’s no bitcoin left to withdraw, or when Coenraad Botha decides he’s stolen enough and does a runner.
The math behind MLM Ponzi schemes guarantees that when they collapse, the majority of participants lose money.