Ponzi Scheme: Is AirBit Club a Classic Example?
If you are an active visitor of our website, you very well know how much we like to talk about all the different kinds of Ponzi schemes on the internet and how you should avoid them. Today, we found yet another one, which is the AirBit Club.
What Is AirBit Club: A Detailed Look
The AirBit Club is an expansive cryptocurrency related site which is based on an affiliate tier. The interested applicants for this program can turn into affiliates through the BitBackOffice site, and they can enroll by opting for one of the three memberships they offer.
The Business Goal
When you visit their website, you will find that it was founded with a mission in mind, which is to provide the users with a new and fantastic technology that utilizes innovative tools that can help ensure that the trading potential is fully maximized and can help increase the distributions of the Bitcoin to every affiliate. In simple words, the company’s alleged goal of their whole operation is to provide their investors with an opportunity to get more earnings through Bitcoin.
When you dig a bit further into the website, this is evidently a partial business model. The only disclosed income source which is verifiable would be by those who invest their money on this platform in order to get started with it. The site claims that 50% of the Bitcoins is split amongst the club members while the other 50% is used to solidify business relationships with companies that are dedicated to growing the technology to trade cryptocurrency and to increase the power of trading.
While there is some reference to the investment of the funds you do on this site, the consumer feedback reveals the opposite. It goes on to show that when the company is confronted, it refuses to provide any transparent evidence.
The Operational Model
When you choose to sign up for the AirBit Club, it offers affiliates unrewarding investment packages which fail even to have break-even returns, unless the affiliate can successfully draw in new members. As mentioned earlier, there are three membership packages on this site, and their cost varies anywhere between $250 and $1000. It is also important to note that while the site mentions that they accept USD, in reality, it can only accept Bitcoins through their platform.
The three different plans AirBit Club offer include:
- Executive Plan: This requires a minimum deposit of $250 in BTC with a 200 level supported volume. The duration of membership is two cycles of 75 business days, and there is one renewal fee.
- Corporate Plan: The minimum deposit required is at $500 in BTC with a 400 level supported volume. The duration of membership is three cycles of 75 business days, and there are two renewal fees.
- Pro Plan: A minimum deposit of $1000 in BTC with a 900 level supported volume is required for this plan. The duration of membership is four cycles of 75 business days, and there are three renewal fees.
Upon researching the site further for the compensation plan, we found that they offer the affiliates a daily return ranging anywhere between 0.2% and 1.2% of the amount they invested. Of course, it is simple enough to guess that these daily returns are not even remotely close enough to break even with the first investment. That is why the affiliates are encouraged to find new and different sources of traffic in order to earn a commission.
Upon further digging in about the site, they claim to employ a matrix based commission tier. That’s just fancy talk for yet another pyramid scheme when you break it down. The number of levels supported through the site’s commission tier is dictated by the investment package the affiliate opts for. The executive plan can support about three levels, corporate supports about seven levels and the pro package supports all the 18 levels.
There is also something called the Retirement Plan that the affiliates can opt for through the platform. There is not much information that is disclosed regarding this plan until you opt to invest on this site. All we know is that there is an additional fee between $150 and $300 that the affiliate needs to shell out.
Ponzi Scheme: Why AirBit Club Is One
By now, even you have a laundry list of questions that you can’t find answers to and some obvious red flags. For starters, taking half of the initial investment of every new member and disbursing them to the previously established members is Ponzi Scheme 101.
For the other 50% of the investment from the new members, the company claims to invest it to smooth over connections with several other cryptocurrency companies. However, we are pretty sure that’s not true. There is an obvious lack of transparency with regards to these funds, so it is safe to assume that the website’s creators are keeping all of these deposits for themselves.
While on paper the AirBit Club’s binary matrix compensation plan sounds all great, let’s face it: this is a living and breathing embodiment of nothing more than a classic pyramid scheme. To make matters worse, even if you try to find any relevant information about the operators, creators, or the corporate entity that is responsible for AirBit Club, you are going to find nothing which makes this whole operation entirely anonymous.
- No money-back guarantee: Even assuming this worked, it’s close to impossible to make your money back without finding other sources of generating income, which is getting more people on board on this pyramid scheme. This is an almost impossible feat and ultimately your money will go wasted. Furthermore, there are way too many obvious red flags such as no clarity where the investment goes and who are the creators of this site.
The AirBit Club is nothing more than a pyramid scheme and a Ponzi scheme hybrid. There are just countless red flags with this site. There is no clarity with the money invested in it, and there is some form or another of financial discrepancy with it. Lastly, operating with total anonymity is yet another massive red flag.
We advise you to avoid this investment altogether as it is unstable and has no future.