Investors Beware of Latest Bitcoin Pass-Up Gifting Scheme BitXUp, Launching as MLM Ponzi
BehindMLM frequently investigates and reveals the scams that arise in the crypto industry, and their recent reveal included BitXUP. There are plenty of red flags to indicate that this company isn’t anything like what it advertises, though even determining what it can offer is difficult.
The first red flag of the many that there are is that there is no indication of who even owns or runs the business, despite being registered for the bitxup.com domain in February this year. The only indication of who might be attached to this business is that the domain owner is listed as Mohammed Shoaib and the address is based in Pakistan.
Rather than offering any type of real product, consumers that invest with BitXUp basically sign up for affiliate membership. The membership offers the investor access to a set called the “BitPix Digital Marketing Kit,” which they list as a quality video and graphics marketing kit that helps with marketing needs.
When an affiliate signs up with BitXUp, they are responsible for giving 0.1 BTC to an affiliate that is already on the system. With that contribution, the new investor becomes an affiliate that can receive these gifting payments from someone else in a 1-up compensation structure. Anyone that contributes to the affiliate must fall directly under them as part of a unilevel system, creating a second level. The affiliates can continue to stack up beneath as each affiliate adds a new affiliate beneath them. However, to withdraw, the user has to pay a 0.0004 BTC fee.
Overall, BehindMLM found this affiliate company to be a
“straight-forward gifting scheme.”
Like any scheme of this kind, it clearly cannot be sustained over time, and the people that reap the highest benefits are the ones at the top, i.e. the administrator of the program and the earliest adopters of BitXUp. With no refunds possible, and most of the money going back to Shoaib, it is clear that this company is not in favor of the investor.