CryptoTrading Biz Review – Ponzi Scheme  – MLM Scam

Website & Company Information

The web domain of the company was privately registered on the 20th of August 2020 and was later updated on 2020–08–25. The website does not provide any information about who owns or runs the company.

Independent researchers suggest that CryptoTrading.biz’s business model is an exact clone of My Micro Profits and YourNetProfits — both Ponzi schemes. In fact, CryptoTrading.biz was previously operating as CoinTrading.biz, and they had a sudden revamp in September.

CyptoTrading.biz provides a U.K incorporation reg. No on its website — 12711208. The mentioned reg. No directs to the following page:

A superficial google search cracks open the truth as the provided address is fake and is owned by a wine shop.

As per our experience reviewing these MLM schemes, we have recognised a pattern that most of these MLMs are registered in the U.K. The U.K. is one of the most favourable jurisdictions for scammers, and this is the reason why 90% of all the shady MLMs are registered in the U.K. Also, U.K. incorporation is dirt cheap.

In the U.K. GOV companies information site, they are categorised under “Nature of Business (SIC) they claim — 66300 — Fund management activities. But, they have yet officially registered with the FCA — meaning they cant offer passive income opportunities in the U.K.

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.

CryproTrading Biz Products

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

CryproTrading Biz Compensation Plan

Affiliates of the company invest in cryptocurrency on the promise of a daily advertised return of 3.6%

Payments can be made in bitcoin, bitcoin cash, ethereum, litecoin, dogecoin and dash. You can see the minimum deposit amounts in the above screenshot.

Referral Commissions

Referral commissions are paid through a unilevel compensation plan get paid a percentage on the invested funds. These commissions depend upon the rank of the affiliate.

Standard Affiliate

  • Level 1 (direct recruit) — 5%
  • Level 2–2%
  • Level 3–1%

Regional Representative

  • Level 1 (direct recruit) — 10%
  • Level 2–4%
  • Level 3–2%

Note: The company haven’t yet specified any prerequisites for becoming a Regional Representative.

Joining CryptoTrading Biz

Joining CryptoTrading Biz affiliate membership is free. However, full participation in the attached income opportunity requires some investment. See screenshot attached in the Compensation Plan section.

Conclusion

The company claims of generating income through cryptocurrency trading. They don’t talk about how they are doing it and are vague about it — No evidence of CryptoTrading Biz engaging in trading of any kind is provided. Nor is there any evidence CryptoTrading Biz is paying returns with any other source of external revenue.

CryptoTrading Biz’s business model also fails the Ponzi logic test because if a company can make 3.6% ROI daily, then why does it need your funds? Cant the admins, compound their funds and make millions?

The investment side of CryptoTrading Biz constitutes a securities offering, and the FCA regulates securities in the U.K. Since the company is not registered with the FCA, it is illegally operating and illegally offering securities.

As we see, the only valid source of income going into the company is the new investment and using these investments to pay existing affiliates makes this business model a Pyramid Scheme.