A typical Ponzi scheme, they lure people with earning money easily and without risk. Thus, I tried looking on their official website and the have a lot of participants. It seems that they have victimized plenty of people. They even assure the investors that the project won't fail and there is no scams or fraud, which is kind of confusing because it contradicts the reality. Therefore, we should do our part as an investor to investigate and search if the investment will be worth it because a lot of people are using that kind of circumstance to trick people, especially the greedy ones.
I dont think we need to bother investigating whether its ponzi or not. We have indicators to assess and determine what it is, and it is very clear that it is Ponzi.
Here are some indicators of Ponzi scheme
Red Flags and Indicators- High investment returns. Ponzi schemes typically have a high value of returns, 1% a day, 30% a month or more is ridiculous.
- Lack of transparency. The names, contacts, office address of the operators should be publicly shown to run a legitimate business. Which most ponzi doesn't provide their valid address and even names of the operators.
- Consistent Returns. Regardless of the market conditions which will rise and fall yet the investment continues to generate regular, positive returns.
- Advertised as "risk-free". Ponzi advertised their shaddy service as such as "Invest to us, we are risk-free and are guaranteed to make money for you." in which All investments come with a different degree of risks.
- Increasing minimum investment. Ponzi starts off with a very small amount of capital and later grows rapidly for their new investors. Ponzi needs to make their capital grow which is higher than their minimum withdrawal amount so they can pay their old investors by the funds of the new investors.
- High rates of commision. Users are highly motivated to promote their referral links due to high commision which is very lucrative.
- Difficulty receiving payments. If you do not receive a payment or have difficulty to cash out your investment then its a high chance that the operators doesn't have enough new investors to fund their old investor and a high chance to run your investment and get scammed.
Its quite clear and never sent anything even though it was just for trial and error. $5 per person, and if there are 100 people then I think it will be enough to make a scammers belly distended for 1 month. Stay away and stay safe.