Alioth Club Review –  Ponzi Scheme –  MLM Scam

Website & Company Information

The web domain of the company was privately registered on the 16th of June 2020 and was later updated in 2020–06–21. The website doesn’t provide any information about who owns or runs the company.

According to the site, Alioth is registered in New Zealand as Alioth Club Limited. It is basic incorporation and performing due-diligence here is inappropriate.

Looking at the marketing videos, you will find Eric Barton, presented as an Executive Director. We are pretty convinced that they have hired an actor to play the role of Eric Barton. You can spot the green screen if you look closely!!

At the time of writing this article, Alexa cites United States (27.3%), Russia (25.6%) and Vietnam (11.9%) as top sources of traffic to Alioth.club’s website. It is highly likely that the admin is operating from any one of these countries.

As always, if the company is not being transparent about its corporate structure, then you must think twice before handing over your hard-earned money to anonymous people on the internet.

Alioth Club’s Products

The company has no retailable products or services, with affiliates only able to market Alioth Club affiliate membership itself.

Alioth Club’s Compensation Plan

Affiliates invest their funds on the promise of advertised returns, paid out Monday through Friday. These investments are group into four different categories, such as forex, crypto, futures trading & eco-energy and assets capitalization.

Forex

  • Forex Trading 1 — invest $100 and get $120 over 20 days
  • Forex Trading 2 — invest $500 and get $695 over 30 days
  • Forex Trading 3 — invest $1000 and get $1640 over 40 days
  • Forex Trading 4 — invest $5000 and get $10,000 over 50 days

Crypto

  • Crypto 1 — invest $50 to $499 and get $187.50 to $1870 over 250 days
  • Crypto 2 — invest $500 to $2999 and get $2375 to $14,242 over 250 days
  • Crypto 3 — invest $3000 to $9999 and get $17,250 to $57,492.50 over 250 days
  • Crypto 4 — invest $10,000 to $49,999 and get $67,500 to $337,492.50 over 250 days
  • Crypto 5 — invest $50,000 to $499,999 and get $400,000 to $3,999,990 over 250 days
  • Crypto 6 — invest $500,000 to $3,000,000 and get $4,6250,000 to $27,750,000 over 250 days

Futures Trading & Eco Energy

  • invest $10,000 to $1,000,000 and get $80,000 to $8,000,000 over 140 days

Assets Capitalization

  • invest $10,000 to $1,000,000 and get $44,319.38 to $4,432,044.63 over 100 days

Alioth Club Affiliate Ranks

A total of 12 ranks are there that can be achieved by affiliates on satisfying different criteria:

  • Investor — sign up at an Alioth Club affiliate
  • Inspired Investor — generate $50,000 in downline investment volume
  • Enthusiast — generate $100,000 in downline investment volume
  • Partner — generate $250,000 in downline investment volume
  • Commercial Partner — generate $500,000 in downline investment volume
  • Brand Partner — generate $1,000,000 in downline investment volume
  • Business Partner — generate $3,000,000 in downline investment volume
  • Regional Representative — generate $5,000,000 in downline investment volume
  • Representative — generate $10,000,000 in downline investment volume
  • Co-founder — generate $20,000,000 in downline investment volume
  • Leader — generate $50,000,000 in downline investment volume

Referral Commissions

Alioth Club pays referral commissions via a unilevel compensation structure, capped at twenty-five team levels:

Referral commissions are paid out as a percentage of funds invested across these twenty-five levels as follows:

  • Investors earn 6% on level 1 (personally recruited affiliates), 4% on level 2, 1% on levels 3 and 4, 0.5% on levels 5 to 7, 0.3% on level 8 and 0.2% on level 9
  • Inspired Investors earn 7% on level 1, 3% on level 2, 2% on level 3, 1% on levels 4 and 5, 0.5% on levels 6 to 8, 0.3% on level 9 and 0.2% on level 10
  • Enthusiasts earn 8% on level 1, 4% on level 2, 2% on level 3, 1% on levels 4 and 5, 0.5% on levels 6 to 8, 0.3% on level 9 and 0.2% on level 10
  • Partners earn 9% on level 1, 5% on level 2, 2% on level 3, 1% on levels 4 and 5, 0.5% on levels 6 to 8, 0.3% on level 9 and 0.2% on level 10
  • Commercial Partners earn 10% on level 1, 5% on level 2, 3% on level 3, 2% on level 4, 1% on levels 5 to 8, 0.5% on levels 9 and 10 and 0.2% on levels 11 to 15
  • Brand Partners earn 11% on level 1, 5% on level 2, 3% on level 3, 2% on level 4, 1% on levels 5 to 8, 0.5% on levels 9 and 10 and 0.2% on levels 11 to 15
  • Business Partners earn 12% on level 1, 5% on level 2, 3% on level 3, 2% on level 4, 1% on levels 5 to 8, 0.5% on levels 9 to 13, 0.3% on level 14 and 0.2% on levels 16 to 20
  • Regional Representatives earn 13% on level 1, 6% on level 2, 3% on level 3, 2% on level 4, 1% on levels 5 to 8, 0.5% on levels 9 to 15 and 0.2% on levels 16 to 20
  • Representatives earn 14% on level 1, 6% on level 2, 3% on level 3, 2% on level 4, 1% on levels 5 to 8, 0.5% on levels 9 to 20 and 0.2% on levels 21 to 25
  • Co-founders earn 15% on level 1, 7% on level 2, 4% on level 3, 3% on level 4, 1% on levels 5 to 8, 0.5% on levels 9 to 20 and 0.2% on levels 21 to 25
  • Leaders earn 15% on level 1, 8% on level 2, 5% on level 3, 3% on level 4, 1% on levels 5 to 8, 0.5% on levels 9 to 25 and 0.2% on levels 26 to 30

Rank Achievement Bonus

Anybody qualifying for the Inspired Investor rank or higher gets rewarded with a rank achievement bonus. These bonuses depend upon the rank you have achieved:

  • qualify as an Inspired Investor and get $500
  • qualify as an Enthusiast and get $1000
  • qualify as a Partner and get $2500
  • qualify as a Commercial Partner and get $5000
  • qualify as a Brand Partner and get $10,000
  • qualify as a Business Partner and get $30,000
  • qualify as a Regional Representative and get $50,000
  • qualify as a Representative and get $100,000
  • qualify as a Co-founder and get $200,000
  • qualify as a Leader and get $500,000

Joining Alioth Club

Joining Alioth Club affiliate membership is free. However, full participation in the attached income opportunity requires a minimum investment of $50 and it goes as high as $3,000,000.

Conclusion

According to the marketing materials provided by the company, they officially claim of having numerous source of revenue. No evidence of the company participating in any of the advertised activities is provided.

Also, Alioth Club is not registered to offer securities in New Zealand or anywhere else in the world. They are clearly promoting a passive income opportunity without having any registrations from any financial regulators. They are violating securities offerings policies. Any day, they can get burned by the financial regulators and not only them, but their profitable members could also get hit by lawsuits.

Whether they may get hit by regulators or not, that’s a different story. But, they have already built an ERC-20 token as their mode of exit-scam.

Alioth Token is a stablecoin, because the project is based on the principle of providing a cryptocurrency with a fiat reserve fund in US dollars, with the initial equivalent of 1 token = 0.01 US dollars stored in the offshore reserves of Alioth Club and in New Zealand.

The token marketed in the company’s presentation holds no real value outside the company’s ecosystem. Alioth can generate as much as Alioth tokens they want without incurring any cost (apart from erc20 token dev cost). The company can literally print tokens worth million dollars out of thin air, and in our words, these tokens are just ‘’shitcoins’’. Most of these MLMs that have their own tokens first focus on creating hype or a bubble that generates demand, and then they dump their bags on thousands of innocent investors.

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