Product Name: Crypto Wealth
Price: $25 to Start, $50 per level after (Paid in Bitcoin)
Owner: Vipul Parekh
Original Owner: Stefan Pienaar (cryptowealth.net) – Defunct!
Recommended: Read the review for more information.
What Is Crypto Wealth?
Crypto Wealth is a Multilevel Marketing (MLM) scheme with the tagline, “People Helping People”. The entire process is founded on the principle of paying to the upline (people who referred you) and receiving double that payment from people who get placed under you. There doesn’t seem to be any products available for sale. The only mechanism of selling is the membership itself.
The system uses Bitcoin, which is an internet currency system. This currency has come under fire by many as being used by illegitimate and illegal sources. Of course, proponents state governments are the ones publishing this as propaganda as it threatens their currencies.
If you try to access the original program (cryptowealth.net), your browser and/or firewall will probably prohibit you. Usually, firewalls are updated with the latest schemes and restrict access. However, cryptowealth1.net seems to be the same program, based on my research. It’s interesting to note that the creation date of this new domain name is January 2, 2017.
Pros vs. Cons
- If you are a fan of matrix-cycler systems and MLM’s in general, you may be able to get in early and make money. But, there seem to be too many red flags to consider.
- The company uses part of the cash payments to enroll you into two other programs. This is what the company refers to as Plan 2 (FGExpress) and Plan 3 (APPITRAVELS). If these are legitimate, your referrals will be placed under you with both of these systems. According to the company, fees and referrals are taken care of automatically by the system.
- No real products offered. It’s possible that they can squeak by using the other programs (Plan 2 and Plan 3) but there is no way to tell for sure.
- Bitcoin is not a regulated currency. It could be argued that this is its strength. However, what sovereign government would you report, if your transactions didn’t work out? It’s too easy to hide in the shadows when dealing with transactions in this currency.
- The original website (cryptowealth.net) is no longer published. It seems as though someone else has taken over with the current website (cryptowealth1.net) from an entirely different country. There is no way to know if it’s the same person who is using an alias.
- Matrix-cycler systems may work in the beginning with early adopters. However, the system may be considered a Ponzi scheme rendering it completely illegal in many countries. If you decide to proceed, be sure to check the legality in your country.
The main reason why MLM offerings can legally exist is that they offer a product or products as part of the membership. Many of them will publish junk eBooks for the sake of satisfying that requirement. Crypto Wealth does not make any mention of products offered.
The law in the United States specifies that any scheme where members pay solely for the membership itself is regarded as a Ponzi scheme and therefore, is illegal. The system is based on what is known as a matrix-cycler program. Essentially, you pay a certain amount to the person who referred and then you are set up to receive two payments from people who get placed under you. Then, as the system builds, you pay an even higher fee, which is supposed to entitle you to four payments from referrals at the next level of the matrix, and so on.
This all sounds good, except for one major problem. What happens when the recruitment slows down? Like any Ponzi scheme, the people who arrive late to the party will be left holding the bag. It’s like the old game of hot potato, except there can be multiple people left with the hot, burning potatoes.
Bear in mind that Bitcoin has no government body. Therefore, it is much more difficult to trace the transaction with this currency. If you participate and lose money, who do you complain to? It’s possible to file a complaint to a consumer group. However, the transaction will likely be tough for these entities to make a case.
Is Crypto Wealth a Scam?
I am never a big fan of calling any opportunity a scam. It’s always possible that I missed something or that someone else has insight into a program that I just didn’t come across. Plus, even scammers make enough money to take legal actions whether they are justified in doing so or not. I can safely say, however, that this is a program that I would not participate in. It doesn’t give me the trust factor I need to proceed with signing up.
It is possible for you to come across reviews of this system that present it in a positive light. Question the motives of the website owner and see if they are trying to refer you. If so, take the review with a grain of salt.
If you join in at the beginning, you may be able to make some money with this program. You will continue to get newer members added to your system which means you’ll be receiving payments from them. Governments try to crack down on these schemes and usually go after the creators. However, there are instances where federal agents will go after the smaller players (affiliates) to discourage these programs. In other words, when word gets out that the CIA or FBI took action against the affiliates, people may think twice about joining them in the first place.
Caution is always warranted when a program goes away only to appear again using a different website from a different location. If the original program passed muster, it should still exist.
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