Unicorn Ultra Review: U2S token “blockchain incubator” Ponzi
Unicorn Ultra fails to provide ownership or executive information on its website.
Unicorn Ultra operates from two known website domains:
- u2sto.xyz – privately registered on December 14th, 2022
- uniultra.xyz – privately registered on December 5th, 2022
Marketing videos on Unicorn Ultra’s website suggest the company is targeting Vietnam.
Over 200 guests attended the Unicorn Ultra Community Offline Event on April 15th at Tan Son Nhat Pavillon in Ho Chi Minh City, to hear specialists from Unicorn Ultra share their perspectives and analyze the blockchain market.
This suggests Unicorn Ultra is being run from Vietnam but I wasn’t able to definitively confirm.
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.
Unicorn Ultra’s Products
Unicorn Ultra has no retailable products or services.
Affiliates are only able to market Unicorn Ultra affiliate membership itself.
Unicorn Ultra’s Compensation Plan
Unicorn Ultra affiliates invest in U2U token. How much is charged depends on how much has already been invested:
- Round 1 – 15 cents a token capped at $1,000,000
- Round 2 – 20 cents a token capped at $2,000,000
- Round 3 – 30 cents a token capped at $4,500,000
- Round 4 – 40 cents a token capped at $10,000,000
- Round 5 – 50 cents a token capped at $15,000,000
- Round 6 – 60 cents a token capped at $21,000,000
- Round 7 – 70 cents a token capped at $28,000,000
- Round 8 – 80 cents a token capped at $28,000,000
- Round 9 – 90 cents a token capped at $27,000,000
- Round 10 – $1 a token capped at $25,000,000
Invested U2U tokens are placed into a “vesting pool” which pays a passive return.
This process sees invested U2U tokens locked up for six months, after which they are “released” to investors at a rate of 5% to 20% a month.
The MLM side of Unicorn Ultra pays on recruitment of affiliate investors.
Unicorn Ultra Affiliate Referral Ranks
There are four affiliate ranks within Unicorn Ultra’s compensation plan.
Along with their respective qualification criteria, they are as follows:
- The Face – sign up as a Unicorn Ultra affiliate and invest $100 in U2U tokens
- Friend of the House – invest $1000 in U2U tokens and recruit three The Face ranked affiliates
- Brand Ambassador – invest $3000 in U2U tokens and recruit five Friend of the House ranked affiliates
- Brand Spokesman – invest $5000 in U2U tokens and recruit five Brand Ambassador ranked affiliates
Note that recruited affiliates must have an active U2U investment to count towards rank qualification.
Initial Referral Commissions
Unicorn Ultra pays referral commissions down three levels of recruitment (unilevel):
- level 1 (personally recruited affiliates) – 7%, capped at $10,000
- level 2 – 5%, capped at $20,000
- level 3 – 1%, capped at $30,000
After initial referral commission caps are reached, referral commissions are then paid out as per “leaders referral commissions” below.
Leaders Referral Commissions
After initial referral commission caps, Unicorn Ultra pays referral commissions out subject to rank qualification:
- The Face ranked affiliates earn 3% on levels 1 to 3
- Friend of the House ranked affiliates earn 5% on level 1 and 2% on levels 2 and 3
- Brand Ambassador ranked affiliates earn 7% on level 1 and 2% on levels 2 and 3
- Brand Spokesman ranked affiliates earn 9% on level 1 and 2% on level 2 and 3
Note that Unicorn Ultra’s compensation plan doesn’t explicitly specify whether Leaders Referral Commissions are paid down three levels of recruitment.
Given initial recruitment commissions are, I’ve assumed this depth is retained.
Community Partner Commission
Community Partner Commissions pays an additional 6% on downline U2U token recruitment.
To qualify for Community Partner Commissions, a Unicorn Ultra can either:
- qualify at Brand Spokesperson; or
- generate $200,000 in downline U2U token investment and have recruited three affiliates who have a “U3 medal”
U3 medal isn’t defined in Unicorn Ultra’s compensation plan so I’m not sure what it is.
Joining Unicorn Ultra
Unicorn Ultra affiliate membership is free.
Full participation requires an investment in U2U tokens. Although not explicitly clarified, I believe the minimum investment amount is $100.
Unicorn Ultra solicits investment in various stablecoins.
Unicorn Ultra Conclusion
Unicorn Ultra is a simple crypto “staking” Ponzi.
Affiliates invest in U2U tokens, park them with the company (this appears to be mandatory for at least 6 months), get paid additional U2U tokens, and then hope to cash out subsequently invested funds.
To explain away ROI revenue, Unicorn Ultra offers up a “transaction fee” ruse…
…but this doesn’t hold much water considering
- nobody outside of the investment scheme will use Unicorn Ultra; and
- fees are unlikely to generate enough revenue to fund an investment scheme based on a token going from 15 cents to $1+.
Unicorn Ultra also sees itself as a “blockchain incubator”.
Supposedly crypto startups are going to flock to a cookie-cutter MLM crypto Ponzi and generate additional transaction fees outside of the affiliate investor-base.
This will happen because… uh, reasons.
Unicorn Ultra being run by persons unknown and targeting Vietnam is also a concern.
Due to language barriers BehindMLM doesn’t cover Vietnam as much but it constantly pops up as a hotbed for crypto fraud – mostly on the victim side of things.
On the regulatory front Unicorn Ultra’s U2U token investment scheme constitutes a securities offering. Unicorn Ultra fails to provide evidence it has registered with financial regulators in any jurisdiction.
This means that, at a minimum, Unicorn Ultra is committing securities fraud.
MLM Ponzi schemes and securities fraud go hand in hand.
As with all MLM Ponzi schemes, once affiliate recruitment dries up so too will new investment.
This will leave Unicorn Ultra unable to honor affiliate withdrawal requests, eventually prompting a collapse.
The math behind Ponzi schemes guarantees that when they collapse, the majority of participants lose money.
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