CryptoFundraiser claims to be the world’s simplest, easiest, and fastest bitcoin-based crowdfunding community. Find out how it works today in our review.
What is CryptoFundraiser?
CryptoFundraiser, found online at CryptoFundraiser.com, is a crowdfunding community based around bitcoin. The company claims you can use their service to turn $50 in Bitcoin or ETH into $819,232 or more in business or charity funding. What?!
The platform launched in March 2017. It was created by a man named Rick Katz – or at least, that’s who signs the emails when you enter the company’s email list.
CryptoFundraiser sounds like an alternative to Kickstarter or Indiegogo. However, based on the information on the official website, it appears the company doesn’t offer any product or service. Instead, the only “product” is in company memberships. After you join the company, your goal is to collect “donations” from other members. Using this process, you can turn $50 into $819,232.
Another red flag behind CryptoFundraiser is that there’s no information about the company’s location, founders, or developers.
Is CryptoFundraiser really a pyramid scheme masked as a “crowdfunding” service? Or is this a legitimate business opportunity? Let’s take a closer look at how CryptoFundraiser works.
How Does CryptoFundraiser Work?
CryptoFundraiser promises to turn your $50 “donation” into over $800,000. Despite numerous “income disclaimers”, the company continues to mention that promise multiple times on the sales page.
How can you turn $50 into over $800,000? Basically, CryptoFundraiser relies on a pyramid-like structure of “donations” and “members”. You pay $50 to join the company today, and then recruit members to join the company beneath you. You receive a cut of each member’s joining fee, and the remaining cut gets passed up the line. This is literally the definition of a pyramid scheme.
Here’s how the company explains their “business model”:
- You pay $50 to join CryptoFundraiser today
- You recruit 3 members beneath you and earn $47.50 out of each member’s $50 joining fee, giving you a total of $142.50
- In round 2, members are asked to donate $100 in bitcoin; there are 9 members in this round, and you receive up to $95 per member, giving you a total of $855
- This continues all the way to round 5, when there’s a donation of $3000 in bitcoin; this round holds 243 members and you receive $2850 per member, giving you a total of $692,550
- If you do the math and add up all of the columns, you’ll earn a total of $819,232 from your initial $50 investment. In order to activate each crowdfunding round, you need to use your profits from the previous round.
As you can see, the business model is strange, to say the least. This isn’t how crowdfunding websites work, and it’s not even how conventional pyramid schemes work. It’s also unclear how or why bitcoin is used. It’s possible that the company is just taking advantage of the word “crypto” because it’s a buzzword that will attract inexperienced investors.
CryptoFundraiser doesn’t really have any products at the moment. Right now, the main product appears to be membership into the “crowdfunding” scheme.
However, the company offers a barebones education center to members. You can get a sample of that information by reading the book “How to Get Rich in the Cryptocurrency Blockchain”, available via free PDF on the official website.
Overall, CryptoFundraiser’s educational materials provide a basic introduction to the world of cryptocurrency – similar to an introduction you can get for free online from websites like our own. Ultimately, CryptoFundraiser’s educational materials can’t really be classified as a “product”.
In the future, CryptoFundraiser may plan to launch a real product in the form of digital tokens. CryptoFundraiser affiliates have made vague references to digital tokens being launched in the future. It’s unclear how those tokens will be used, or if they ever will be launched at all. However, some affiliates already claim to be holding onto the coins. They’re called Tada Coins. As far we can tell, they’re just designed to support the pyramid scheme and have absolutely no value. Unless you want to lose your money, you should not convert your currencies (like USD or BTC) into Tada Coins.
Who’s Behind CryptoFundraiser?
One of the biggest red flags behind CryptoFundraiser is that there’s no information about the founders, developers, or company behind the crowdfunding system. The “Contact Us” page simply redirects to an anonymous form.
When someone is asking you to give them $50 over the internet, but refuses to disclose any information about themselves, that’s not a good sign. It generally means that your $50 is going to disappear without a trace.
The only “clue” behind CryptoFundraiser is that when you sign up for the company’s free eBook, you receive an email from a guy named Rick Katz. Katz’s introductory email has been featured on email phishing websites like EmailFake.com.
Interestingly, that email also gives us an address:
705 N State Road 9
Columbia City, Indiana 46725
That address appears to be an empty lot next to a highway in rural Indiana. Meanwhile, a search for Rick Katz reveals a number of people – but nobody explicitly linked to cryptocurrencies. It’s possible that Rick Katz is a pseudonym.
Conclusion: Should You Invest in CryptoFundraiser?
The cryptocurrency world is filled with scams and shady businesses at the moment. People are trying to take advantage of cryptocurrency newbies. They capitalize on the hype of bitcoin by luring people into investment schemes, telling them they’re going to earn over $800,000 from a $50 investment. It’s a perfect situation for pyramid schemes to emerge – and we’ve seen plenty of those in recent months.
CryptoFundraiser is a strange organization. The company has no information about its founders, its developers, or anybody behind the project. We don’t know where the company is based, and there’s an overall lack of transparency across all stages of the project. The only address we have is for an empty lot beside a highway in rural Indiana.
There’s also the problem that CryptoFundraiser appears to clearly outline a pyramid scheme on the front page of its website: you pay $50 today, then convince hundreds of people to pay $50 after you. Suddenly, your $50 can turn into over $800,000.
Ultimately, when someone claims they can turn your $50 into $800,000 online, you should immediately close your browser and walk away. Unless CryptoFundraiser reveals more information about itself, we’re forced to conclude that this is yet another scam or pyramid scheme – no matter what paid affiliates online will try to tell you about it being a “legitimate business”.