DDK Multi-Level Marketing (MLM) Crypto Ponzi Review!
The crypto currency Multi-Level Marketing (MLM) niche is one of the areas scammers have capitalized in the industry. DDK is among the few firms operating within this space as of press date; the company’s website is insufficient given there is no corporate address.
DDK’s founders according to its website are Datin Nur Ezdiani Baharoddin & Daruk Azrainuddin Zainal, the two are married and have been running the company together. They are co-joined by Nurshuhada Zainal who acts as the firm’s CEO.
Based on their digital activities, the three are located outside Malaysia although their company’s operations are majorly done in this country. Other areas where DDK’s product is quite popular include; Brunei & Indonesia. This is deduced from the traffic flow on DDK’s website whereby the three countries represent over 80%.
However, DDK has come out to advocate that it operates within Singapore’s financial jurisdiction & within its set regulations. This may have some level of truth in it owing to the fact that the firm has a couple shell corporations set up in the country. The only limiting factor to this allegation is the absence of a physical office in Singapore for the firm’s operations.
One of the products launched by DDK was the DinarCoin (DNC), this altcoin came into existence back in 2015. Its design was no different from the common MLM pump & dump crypto projects; the digital asset could only be transacted internally. It was a short lived asset that collapsed as soon as investors withheld their funds. Two years later, the DNC coin was done away with and the DDKoin created as a replacement.
DDK Fundamental Value
The company has no specific crypto-designed services or products; its only purpose is to create a platform for marketing affiliate membership.
The Pay Out Structure
Prospective DDK customers join the project expecting a significant ROI.
The DDKoin comes in handy when measuring the investment allocation for each affiliate member. Basically, the coin’s only purpose is to facilitate this arithmetic.
This altcoin is almost valueless when it comes to the public crypto markets; it is only DDK that can attach a value to this digital asset hence its non-availability in the market.
Its coin’s value is not displayed on the Website yet leaving only investors and the company in the know about its ‘true’ worth. Members of the DDK MLM store their digital currencies within the ecosystem provided by the firm. They are then paid out structured ROI’s based on the initial affiliate membership agreement;
- 10% for the first year
- 8% for the next half year
- 6% for the next half year
- 4% for the final half year
- 2% for every year perpetually
Looking at it arithmetically, the scheme can last for a while given DDK is far from issuing out all its 41 million coins. For one to be a delegate, they have to invest in over 10 DDkoins. This is because it is the least amount they can be charged to secure a stake in the income collected from affiliate transaction fees.
Commission for References
The firm gives an incentive for affiliates & delegates to refer new members; this is set at 10% on the DDkoin and is meant to be stored within DDK’s ecosystem.
Just like a Ponzi scheme, DDK’s affiliate structure is designed on recruitment levels. The company uses this hierarchy to compensate the affiliates.
A top affiliate recruit new members who are placed at (level 1) in the unilevel structure; this goes for anyone recruited by this affiliate on a personal level.
The level 1 affiliates are then obliged to integrate new members who will be under them (level 2).
The cycle goes on and new affiliates brought in by level 2 are placed under them (level 3).
At the moment, DDK has placed a cap of 15 for each unilevel.
DDK’s residual commission approach is compensating all the unilevel affiliates that have deposited DDkoins with them. This is calculated on a percentage basis guided by the DDkoin value.
In summary, the payout structure is pegged on the unilevel position of an affiliate. The top most affiliate will receive more given they have a longer tree downwards;
- 5% – level 1 (affiliates recruited by DDK)
- 3% – level 2 affiliates
- 2% – level 3 & 4 affiliates
- 1% – level 5, 6 & 7 affiliates
- 0.9% – level 8 affiliates
- 0.8% – level 9 affiliates
- 0.7% – level 10 affiliates
- 0.6% – level 11 affiliates
- 0.5% – level 12 to 15 affiliates
DDK Subscription Process
Interested investors can join the MLM as affiliates at no cost. However, they would have to purchase the DDkoin in order to participate in the advertising and profit making process. As it stands, the amount of funds one can invest for this venture has no lower or upper caps. This leaves room for one to easily join the delegates league to increase their income prospects.
DDK is basically a Multi-Level Marketing Ponzi.
Their coin has no fundamental value outside DDK’s ecosystem qualifying it for a shit coin within the crypto markets today.
Investors eyeing this project have only one expectation; an increase in DDKoin’s value as they continue being paid ROI. This is the process explained whereby funds from new affiliates offset the ROI obligations of this firm.
The firm’s approach of persuading investors to hold their stakes with DDK’s infrastructure helps the company string clients for longer periods. Ideally, they are required to park their investments with DDK & benefit from the compensation plan.
Holders of DDKoins are to be paid annually and semi-annually based on the rates indicated in the unilevel commission section. This design is almost cost-free for DDK as they only sell already generated coins to new affiliates and settle underlying commitments for a specific period.
In the midst of all these, DDK’s founders are accumulating funds from unsuspecting investors and hiding the money away. This simply means that the funds will not be paid out as intended as long as new affiliates join the MLM scheme.
The firm can sometimes make an exception to facilitate the ROI promises if new affiliates do not meet these financial needs. Other than that, management goes home with the bigger chunk of this investment.
DDK’s malpractices not only target MLM ignorant investors; the firm is also said to commit fraud related to securities. To date, DDK is yet to provide registration proof for its operations in Malaysia, Indonesia & Brunei.
It is no foreign concept how Ponzi schemes end up; Judging from history, DDK’s MLM scheme will wind up as a result of lower recruitment rates gradually. This will in turn slow down the firm’s ecosystem forcing all players to take cuts.
Investors whom have parked their DDKoins with the firm ought to be very careful. This is because it will be late once they realize the firm ran out of prospective naïve affiliates to scam into the cycle.
One year is enough for DDK to tamper with their books while keeping the investors at peace with a 10% ROI. This buys the firm time before the affiliates consider cashing out. However, this cannot be sustained perpetually meaning that once they withdrawal requests are out of DDK’s financial limit, they will have no option but to close.
An important note based on this MLM scheme is Brunei’s involvement. The region is supposedly the largest source of investment for DDK’s Ponzi.
Brunei is a considerably small country with a population of less than half a million. The country’s securities oversight mandated body is yet to land its wrath on the DDK project. This might be a recipe for disaster owing to the volatility of crypto markets & DDK’s shaky design. It is therefore highly probable that a negative outcome from DDK’s operations would leave the country deprived socially & economically.
As for Malaysia and Indonesia, they might be able to handle such a disaster although the funds will probably be washed through Singapore’s jurisdiction.
Looking at these developments, it is prudent to conduct a due diligence on such MLM start-ups and be very cautious when recruiting affiliates to a project you don’t understand.