ZarFund Review: Bitcoin-based cash gifting
There is no information on the ZarFund website indicating who owns or runs the business.
The ZarFund website domain (“zarfund.com”) was registered on the 27th of July 2016, however the domain registration is set to private.
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.
The ZarFund Product Line
ZarFund has no retailable products or services, with affiliates only able to market ZarFund affiliate membership itself.
The ZarFund Compensation Plan
The ZarFund compensation plan sees affiliates gift bitcoin to the affiliate who recruited them each month.
This payment qualifies the affiliate to receive monthly gifting payments from subsequently recruited affiliates.
Gifting payments in ZarFund are tracked via a 2×5 matrix.
A 2×5 matrix places an affiliate at the top of a matrix, with two positions directly under them:
These initial two positions form the first level of the matrix, with the second level generated by splitting each of the two positions into another two positions each (4 positions).
The third level is generated by splitting each of the two second level positions into another two positions again (8 positions).
In this manner all five levels of the matrix are generated, with a complete 2×5 matrix housing 62 positions.
Positions are filled via direct and indirect recruitment of new ZarFund affiliates, who each gift 0.03 BTC a month to the affiliate who recruited them.
This qualifies an affiliate to receive gifting payments from affiliates in their matrix as follows:
- level 1 (must gift 0.03 BTC a month to affiliate who recruited you) – receive 0.3 BTC a month from 2 affiliates
- level 2 (must gift 0.05 BTC a month to affiliate who recruited you) – receive 0.05 BTC a month from 4 affiliates
- level 3 (must gift 0.1 BTC a month to affiliate who recruited you) – receive 0.1 BTC a month from 8 affiliates
- level 4 (must gift 0.2 BTC a month to affiliate who recruited you) – receive 0.2 BC a month from 16 affiliates
- level 5 (must gift 2 BTC a month to affiliate who recruited you) receive 2 BTC a month from 32 affiliates
Note that the required BTC payments to unlock each level are cumulative.
The ongoing monthly payment required to unlock the entire 2×5 matrix is 2.38 BTC.
Joining ZarFund
Affiliate membership with ZarFund is tied to a minimum monthly 0.03 BTC payment to the affiliate who recruited you.
Conclusion
Under the guise of donations between affiliates, ZarFund operate a five-tier cash gifting scheme.
ZARFUND is a donation exchange platform where members voluntarily give donations and receive donations on a monthly basis.
The problem with this ruse is that donations aren’t made with the expectation of receiving funds back.
The primary reason a ZarFund affiliate sends money to the affiliate who recruited them is because it qualifies them to receive the same from other affiliates.
That a ZarFund affiliate would “donate” funds to somebody they’ve never met with no idea what the funds might be used for makes little sense.
Here’s how it works. After joining your level 1 upline’s referral link, you pay your upline 0.03btc per month to be in a position to receive the same from each of your level 1 downlines.
As with all cash gifting schemes, once recruitment of new ZarFund affiliates dies down so too will payments within the system.
ZarFund affiliates at the bottom of the company-wide matrix (typically the largest group of affiliates), will stop paying their upline unless they can find affiliates to recruit and receive payments from.
This means the upline stops getting paid. They too then stop paying their upline if they can’t replace affiliates who quit.
Non-payment slowly trickles up the ZarFund affiliate-base until an irreversible collapse is triggered.
At that point any ZarFund affiliate who hasn’t received more than they’ve gifted to the affiliate who recruited them each month loses out.
As an added bonus for ZarCoin victims, the use of bitcoin will mean recovery of funds in the event of a collapse is quite slim to none.
A wonderful explanation of zarFunding and how it works.
I have a small, well not small, problem with the author’s review where you explain the dangers of cash donation exchanges crashing, falling, clising down.
Closing down but you use ZARFund as the example while it was, according to your article, only registered/started during July 2016.
Had you used any other cash donation exchange that had closed’s name for a reference, you would have added credibility to your article.
This is not a unbiased review in my eyes and leaves a rank taste in my mouth.
I feel that you have researched somewhat but with bias towards these cash funding exchanges. This reduces your complete review to nothing. It can only be accepted with disdain
Um, try every cash gifting scheme ever launched.
Bloody hell…
Yes, I am completely biased toward cash gifting schemes. They are all scams and you promoting one are a scammer.
Not as rank as the eventual taste in the mouth of your victims. For shame.
Are you sure the rank taste didn’t occur after you realized:
a) you’d been sprung,
b) you’d joined an illegal cash gifting scheme
c) you’re not close enough to the top of the pyramid to get your money back ??
So you know it is a scam and feel the taste of the honest truth hitting you badly.
Problem is scams will still be scams no matter when they were started.
Open your eyes and just read about a few more it will taste a bit better in the future.
Maybe you can avoid losing more of your money and become more credible to warn others not to join or follow you into them.
Just a bit of background on this scam, Hannes Jordaan is the “mastermind”, learnt his trade pimping MMM and got his ass kicked out the door asap when trying Zar on at BCTalk.
“Evangelist Pastor” Rodney Spray is another white South African Zar pimp, also got BitClub Network (dying) notched on his bedpost.
Much disquiet as Zarfund website goes dark on 1st October, answered by Jordaan advising punters to “go drink a beer or read a book.”
Robme Spray, how exactly does this business make money then? You know… what allows them to keep the doors open so to speak?
Guys, come on…. let’s use the good sense.
This is obviously a pyramid-scheme. It is not sustainable, at the moment, you will not have people paying monthly for the eternity.
There are some evangelists of these models of donation systems, but again, it is obvious that people who joined at the end of the matrix have a much higher risk of not getting paid.
Most people who defend this scheme are brainwashed, with promises of high revenue, but we have seen in recent past all those models… There is a name for this gentleman: scam, pyramid, fraud at the end.
If you believe in economics prophets, go ahead and lose your money. There are several other ways to earn money, of course are harder, because there are no miracles to become rich.
Zarfund scammers have just launched a new scam called crypto-builder and is being pimped by Rune Forjort and Sindu Thomas!
SCAM!!!!!!!!!!