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.
Affiliate membership with ZarFund is tied to a minimum monthly 0.03 BTC payment to the affiliate who recruited you.
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.