EXP Asset: Is Exp Asset Crypto MLM a Legit Bitcoin Investment Scheme?
The world of cryptocurrency is suffering from the endless scams and pyramid schemes cropping up daily. In this article we focus on the Exp Asset scheme that promises a 120% return on investment (ROI) in 120 days.
Is the company a legit business or is it a Ponzi scheme that chokes up your investment?
The history behind Exp Asset
Exp Asset claims on its website that it is incorporated in Nevis as Silesia Capital Management. The website (expasset.com) was first registered on March 10th 2018 privately raising questions on the legitimacy of the business.
The website is not regularly updated and no information of the team members and founders is given on the site. This raises even more doubt as it claims to be legitimate but no one is responsible for the scheme.
The company is a Multi-level marketing (MLM) scheme hence there is no legitimate reason to be incorporated in Nevis. The owners of the site point towards China, U.S and Korea as most of the website traffic comes from these three countries.
How the Exp Asset MLM scheme works
It crucial to note that Exp Asset has no live products or services they are offering to users other than marketing the affiliate program. The scheme promises a 1% daily on your investment for 120 days totaling 120% ROI. For a new investor to participate in the MLM they should invest a minimum of US$100. It however remains unclear how the company makes a profit to pay off their obligations.
The company pays out the commissions in two major sets: referral commissions and residual commissions. The two are discussed below.
This is carried out through a binary compensation model. At the top is an affiliate with lower levels beneath. The first level has two other affiliates who are then divided into two on the next level (now with four affiliates). Each new level is twice the size of the previous level.
Each day new the total amount from new recruits is added up and commissions are paid out. Affiliates are paid 10% of generated volume on their weaker binary team side.
Note: To qualify for residual commissions, an Exp Asset affiliate must recruit and maintain two active affiliate investors (one on each side of the binary team).
This is reserved for investors who invest over US$1000 in the scheme. These investors enjoy an 8% referral commission on every recruit they personally integrate to the scheme. The commission is calculated daily according to the amount raised by your personal recruited affiliates.
Should you invest in Exp Asset?
The project looks more of a Ponzi scheme rather than an actual investment opportunity. The lack of identities of the leading team members and ambiguous nature of their selling points should raise a red flag.
As is with most pyramid schemes, only a few of the investors actually profit since the MLM business depends on finding active affiliates. If affiliate do not join the profits dwindle and the pyramid collapses leaving investors with huge loses.
Always be cautious before investing in such projects.