Fun5 Exchange Review  –  Ponzi Scheme  – MLM Scam

Website & Company Information

The web domain of the company was privately registered on the 24 of February 2020.

We took a look at the executive team of the exchange, and we can say that the company is using random faces and portraying these guys as the team behind the company. None of these faces exists outside the company’s website, and none of them has a mere Linkedin profile.

These LinkedIn buttons are inactive.

In an attempt to look big, Fun5 is using the big names. These partnerships don’t exist in reality.

UK Incorporation

Fun5 Exchange provides a UK incorporation certificate on its website that shows Fun5 is legitimate. According to the declaration, the company is registered as Fun5Exchange Limited.

The UK is one of the most favourable jurisdictions for scammers, and 90% of all the shady MLMs are registered in the UK. Also, UK incorporation is dirt cheap.

As always, if a company is not transparent about their incorporation and its corporate structure, then you must think twice before handing over your hard-earned money to them.

Fun5 Exchange’s Products

The company has no retailable products or services, with affiliates only able to market Fun5 Exchange affiliate membership itself.

Fun5 Exchange’s Compensation Plan

The affiliates invest ETH on the promise of a 500% ROI. All the investments are converted from Ethereum to FFV token.

  • Basic 1 — invest 0.5 ETH and have 100 FFV TOKENS and get 3% a day
  • Basic 2 — invest 3 ETH and have 700 FFV TOKENS and get 3% a day
  • Standard 1 — invest 10 ETH and have 2500 FFV TOKENS and get 4% a day
  • Standard 2 — invest 20 ETH and have 6000 FFV TOKENS and get 4% a day
  • Pro 1 — invest 50 ETH and have 18,000 FFV TOKENS and get 4.5% a day
  • Pro 2 — invest 100 ETH and have 50,000 FFV TOKENS and get 4.5% a day
  • Exclusive 1 — invest 300 ETH and have 200,000 FFV TOKENS and get 5% a day
  • Exclusive 2 — invest 500 ETH and have 500,000 FFV TOKENS and get 5% a day

All the ROIs and commissions are paid in FFV tokens.

Referral Commissions

Affiliates earn a 5% commission on funds invested by direct recruits.

Residual Commissions

Fun5 exchange also pays residual commissions using a binary compensation structure.

The company’s compensation material disclose much about the specifics.

Extra Bonus

Fun5 exchange also has a reward system termed as “extra bonus”. This appears to be a bonus percentage applied to ROI rates.

Joining Fun5 Exchange

Joining Fun5 Exchange affiliate membership is free. However, full participation in the attached income opportunity requires a minimum investment of 0.5 ETH.

Conclusion

The FFV token marketed in the company’s presentation holds no real value outside the company’s ecosystem. Fun5 exchange has the ability to generate as much as FFV 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’.

In a nutshell, the company’s affiliates sign up and hand over ethereum for worthless FFV tokens.

Since all the withdrawals go through the company’s internal exchange, it is totally up to them to selectively honour withdrawals. They will keep on doing this until they feel like it or until the deposit side is greater than the withdrawals side.

Chances of Public-Exchange exit scam

Most of these MLMs that have their own tokens, first focus on creating hype or a bubble that generates demand.

When the demand for their tokens are at an all-time high, they list their token into a public exchange and pump the price. When they feel enough people are standing in the line to buy their dump, they dump all their tokens to the general public and do a runner.