Traffic AdCoins Exposed as Cryptocurrency MLM Ponzi Scheme Business
Traffic AdCoins Exposed as Ponzi Scheme
BehindMLM has long been one of the foremost watchdogs over cryptocurrency and Ponzi scams within the growing industry. Though Ponzi schemes are not specific to cryptocurrency and blockchain technology, the natural anonymous nature of the tech has made it easier than ever for nefarious businessmen to run off with the funds of investors who might have believed in their false cause just a little bit too much.
In order to respond to the influx of cryptocurrency-based Ponzi schemes, BehindMLM continued to publish articles exposing companies on the blockchain that operate as clear and overt scams. The latest iteration of the cryptocurrency Ponzi scheme involves the concept of paying out money in the form of ROI, based entirely off of “AdPacks” sold to new affiliates. As with many cryptocurrency Ponzi schemes, the only actual money to be made is coming from new investors joining and then buying their own packages. When this happens, the company is able to pay out the existing packs and pay the person who referred them to the site.
But as with all Ponzi schemes since the original, the jig is up once investor interest starts to die down. Because investors are only being paid off of the new money from new participants, once the new participation dies down payouts will slowly begin to dwindle as well.
A Lack of Products
The first clear sign of a Ponzi scheme, Traffic AdCoins has absolutely no actual product, and offers no clear service to customers. Simply put, there is no potential source of income with which to pay investors aside from the marketing of membership for affiliates on the site. There is no mining operation, they do not even sell t-shirts to help explain how they might be able to produce a ROI of “up to 2%” for their biggest investors.
The Compensation Plan
According to their site, the company offers four separate investment packages to new users. They are priced USD $5, $10, $25, and $50 respectively. Each package entitles the owner to a ROI, or an amount of money they make as a percentage of their investment every day. This ROI seems to cap out at around 2% for the highest package, and lower for the others.
Additionally, the company has a complex referral system where users can be paid up to five levels down, utilizing a unilevel structure of compensation.
A Clear Ponzi Scheme
The evidence is clear against this startup company. Although perhaps an actual payment plan involving a substantive product could help the company to gain some legitimacy, at the moment their entire structure is dependent on gaining new affiliates through referrals.
When a new affiliate signs up and pays for an investment package, they are paid off by the money paid by other new affiliates. When the wells all dry up and there are no more gullible affiliates to enter the market, the payments will stop. At this point, the site and company will go under and its leaders will likely disappear with sizeable checks for their scheme.