Hodl Game: Possible Ponzi Scheme?
Hodl Game advertises the idea that users will be able to earn through holding. The website stated that three primary coins will be used, which include Bitcoin [BTC], Bitcoin Cash [BCH] and Litecoin [LTC]. Simply put, the main intention behind the game is to compensate community members by sharing their concept and platform with others.
According to Behind MLM, Hodl Game could be a Ponzi scheme and their main argument is the lack of information. Upon visiting the main website, hodlgame.net, information as to who the team is or company involved has not been revealed. This creates a trust issue, as investing large amount of money, as per their rules can easily go wrong.
Here is a breakdown as to what users can expect from the Hodl Game:
It appears that the Hodl Game simply advertises earnings, urges users to get the word across, and stops there, as there does not seem to be any products offered, nor any real-life uses. In most crypto projects, a purpose and applicable component is normally offered, hence an important sign to consider.
As for the game itself, it has been designed in a nine-tier cycler. As per Behind MLM, the nine-tier cycle is a 1 by 4 matrix, which means that users only need to take on four positions to make a commission. The following indicates how much will be transferred to one’s wallet as he or she moves up levels:
- Level 1: $10 paid to wallet, move to level 2
- Level 2: $20 paid to wallet, move to level 3
- Level 3: $50 paid to wallet, results in new level 1 position and moves to level 4
- Level 4: $50 c paid to wallet, move to level 5
- Level 5: $125 paid to wallet, move to level 6
- Level 6: $150 paid to wallet, results in new level 4 position and moves to level
- Level 7: $200 paid to wallet, move to level 8
- Level 8: $500 paid to wallet, move to level 9
- Level 9: $1100 paid to wallet, results in new level 7
By level 9, users are told that they will have a cumulative earning of nearly $2,400. A 100 percent bonus is also said to be rewarded to each individual who introduces the game to others and gets them involved.
The initial amount to get started in the Hodl Game is the first level amount of $10, which as previously mentioned can be done in one of the three crypto options provided. While the game reveals that it is as simple as holding and generating income, Behind MLM, trusts that it is none other than an MLM (multi-level marketing) cycler Ponzi scheme.
The reason for this conclusion stems from the fact that fresh money coming in is used to pay off existing investors within the cycle. The obvious problem here would be when fresh money stops coming in. In particular, it was also noted that the “re-entry” scheme here simply rids the system of money, making it all-the-more concerning.
The Hodl Game has also warned users that the game has risks associated with it, and those who simply “cannot afford to lose initial outlay, do no join”, adding that there are “no chargebacks”.