ReferABit appears to be a pyramid scheme catered to the cryptocurrency world. Find out if ReferABit is a legitimate business opportunity or a complete scam today in our ReferABit review.
What is ReferABit?
ReferABit claims to be a cryptocurrency trading platform that lets anyone invest in the world’s fastest growing digital currencies.
Unlike every other cryptocurrency exchange available today, ReferABit makes you pay to join. Joining fees range from $50 to $2000, depending on your desired amount of growth.
ReferABit’s website looks pretty legitimate. The company advertises itself as a legitimate investment and exchange service. In reality, however, ReferABit is a multilevel marketing company. The company does not appear to sell any products or services whatsoever: the only product (and the only way to make money) is through membership fees and affiliate commissions.
The company claims to be led by Mark Hauser, a trader who has “been a Wolf of Wallstreet for many decades.” According to the official ReferABit website, Mark left the world of Wall Street and researched cryptocurrencies for years. He eventually “created an algorithm that predicted the trends in cryptocurrency.”
We could find no information about a trader named Mark Hauser online – which is odd for someone who has purportedly been a high-profile trader for “decades”.
Despite the lack of information about the algorithm, that algorithm promises you guaranteed investment returns of 2 to 2.5% per day.
Obviously, ReferABit has all of the red flags we associate with bitcoin investment scams. But let’s take a closer look to see if there’s anything worthwhile here.
How Can You Make Money with ReferABit?
ReferABit vaguely mentions that it has a cryptocurrency algorithm capable of predicting cryptocurrency markets, analyzing their direction, and making trades based on that information.
In fact, ReferABit specifically promises that investors can make guaranteed returns on their investments. Plans come with a guaranteed daily growth of 2% to 2.5% every business day. The more money you give ReferABit, the higher your guaranteed earnings will be.
In reality, there doesn’t appear to be any trading going on with ReferABit. The company does not appear to have an algorithm. In fact, it doesn’t appear they use bitcoins in any way, shape, or form. Instead, the company is designed to lure newbie investors, then hold their money until they recruit more people into the period scheme. We could not find any information to suggest that they legitimately trade in bitcoin or other cryptocurrencies.
All plans offer 10% binary income and 5 levels of commissions on membership fees beneath you in the pyramid. You earn 5% on the first level and 1% on level 5 income, for example.
Overall, there doesn’t appear to be any other way to make money with ReferABit. It appears that you only earn money by referring other people to the platform. Then, you get a cut of their joining fee.
When a company is only earning money through new memberships, and doesn’t have any products or services, that’s called a pyramid scheme.
Like most pyramid schemes, you’ll need to pay a hefty fee to join ReferABit. The company offers three different packages. The packages are all identical except for their guaranteed ROI.
Starter ($50 to $999)
- 10% binary income
- 2% guaranteed ROI per day every business day for 100 days
Professional ($1000 to $1999)
- 10% binary income
- 2.25% guaranteed ROI per day every business day for 100 days
Expert ($2000 and Above)
- 10% binary income
- 2.5% guaranteed ROI per day every business day for 100 days
After signing up as a free member, you’ll be asked to deposit money through wire transfer.
About ReferABit: Who’s Behind It?
Like most online scams, ReferABit refuses to disclose much information about itself online. The company vaguely mentions that it’s led by an experienced trader named Mark Hauser, although we couldn’t find any information about that individual online.
All that we really know is that the ReferABit.com domain was registered on May 20, 2017. We also have a corporation registration listing that tells us the company is registered at the following address in London:
3 Whitfield Road
London, England, UK E6 1AS
That corporation registration tells us the company was registered by a British individual named Mr. William Jr. Gries.
Meanwhile, the company’s “Contact” page lists an address in New York City.
The company’s “About Us” page features no additional information about the organization. The page mentions that the team has “many years of experience in trading, risk management, design and distribution of trading related investment products.” As proof of that experience, the company posts stock images of businesspeople.
Conclusion: Is ReferABit a Scam?
When somebody guarantees you a specific ROI every day for 100 days, you’re probably being scammed. This is one of dozens of red flags seen on the ReferABit website. The scammers have done a decent job of making the website look legitimate. In reality, however, there are no products or services being sold, and ReferABit doesn’t even seem to invest in bitcoins. Instead, the only way to make money through ReferABit is by selling memberships. That means ReferABit is a pyramid scheme.
At worst, ReferABit will steal your money and disappear immediately after you make an investment. At best, you’ll be forced to refer other people to the scam to break even on your “investment”.
For all of these reasons, you should absolutely avoid ReferABit – at least until the company offers more information about itself or proves that you can make money outside of affiliate memberships.