Colobit, found online at Colobit.biz, is a bitcoin investment scheme that promises to help you get rich quick with no risk. Find out if it’s a scam or a good opportunity today in our review.
What Is Colobit?
Colobit.biz describes itself as “the leader among the bright representatives of professionals in the modern market of crypto-currencies.” Yes, that’s the very first line on the official website.
It doesn’t take long before you realize Colobit is a blatant scam. The company mentions that you can get rich quick with no risk or skills required – and all you need to do is give them a bunch of money:
“In the first place, it brings a huge profit and minimizes the risks to zero.”
Yes, Colobit claims to have developed some secret moneymaking system where it buys and sells cryptocurrencies and generates enormous profits with no risk.
Just how big are those profits? Colobit claims that they consistently earn 5% per day, every day, guaranteed – which means you will earn 1825% ROI every year, guaranteed, with no risk.
How Does Colobit Work?
Colobit claims to make money through arbitrage. Basically, that means they buy low and sell high, taking advantage of the different prices between cryptocurrency exchanges.
Arbitrage opportunities may exist in some markets, currencies, and exchanges. However, they’re not a reliable way to make money – especially for a small company like Colobit that has limited capital under its control.
Nevertheless, Colobit claims they make a profit through arbitrage every day. Even more impressive is that their trading system “completely excludes the slightest probability of failure.”
Another extraordinary thing about Colobit is that the company doesn’t trade cryptocurrencies on cryptocurrency exchanges. Instead, the company buys cryptocurrencies “well-known international stock exchanges.” That’s particularly impressive because no major stock exchange currently lists cryptocurrencies.
Ultimately, unless you’re totally new to the world of cryptocurrency, Colobit is a blatant scam. The company claims to make enormous profits, but refuses to provide any proof or evidence. There are no products or services. It’s just a membership based pyramid scheme.
Colobit “Investment Plans”
Colobit advertises all of the following investment plans:
- Minimum investment of 0.003 BTC, maximum of 2 BTC
- 0.17% ROI every hour
- 50 day contract
- Minimum investment of 2 BTC, maximum of 5 BTC
- 0.19% ROI every hour
- 50 day contract
- Minimum investment of 5 BTC, maximum of 50 BTC
- 0.21% ROI every hour
- 50 day contract
Ultimately, when someone is promising to pay you returns of 4% to 5% per day, guaranteed, with no risk whatsoever, it’s a 100% guarantee that you’re being scammed.
Colobit Pyramid Scheme
Colobit has a pyramid scheme built into its “investment strategy”. They’ll pay you 3% commission on any people you refer to the platform, as well as 1% commission on the two additional levels.
There’s also a separate “representative commission” rate available, where you earn 5% commission on the first level of referrals. The remaining 97% or 95% of the joining fee gets passed to the top levels of the pyramid scheme.
Who’s Behind Colobit?
Colobit Ltd. is a private limited company registered in the UK. The company was incorporated on August 2, 2017 by a man named Edward Reed. The company lists an address in London (22 Melton St), although it seems doubtful they’re actually based at that address (or that Edward Reed exists).
Ultimately, we’ve seen a number of bitcoin investment schemes pop up online with legitimate UK corporations and London-area addresses. These companies exist for a few weeks, collect money from gullible investors, then shut down.
Meanwhile, most of the company’s social media profiles are in Russian – which tells us that it’s likely a Russia-based scammer running the operation.
Colobit is one of the most obvious bitcoin investment scams we’ve spotted online in recent months. Like other scams, the team behind Colobit refuses to disclose their identity, lists a fake address in London, and promises enormously high returns of 5% per day – despite the fact that they have no investments, no products, no services, and no proof of any legitimate business.
For all of these reasons, Colobit is one bitcoin scam you should absolutely avoid. If you did deposit money into Colobit, then that money is already gone. If someone tries to tell you that Colobit is a legitimate moneymaking opportunity, it’s likely because they want to make affiliate commissions from you