AladinCoin Review: AIC Ponzi points scheme
AladinCoin provide no information on their website about who owns or runs the business.
The AladinCoin website domain (“aladincoins.com”) was privately registered on March 21st, 2017.
In what appears to be an attempt to feign legitimacy, AladinCoin provide a HSBC UK “Deposit of Fund” certificate on their website.
The deposit is for $1 billion USD and was made by Taswin Tarib, an Indonesian citizen, on November 14th, 2017.
For some reason AladinCoin took it upon themselves to block out the company owner on the document.
Where things get interesting is the provided address for Aladin Coins LLC is in California.
According to a Business Entity Search with the California Secretary of State, Aladin Coins LLC is not a registered entity in California.
Getting back to the certificate itself, note the different font used for the address and non-alignment of the “Principal Owner” field:
Three other anomalies are the US spelling of “legalized”, the presence of a Homeland Security stamp on a UK deposit certificate and in the first page of the document, a purple border digitally covering the watermark:
Out of curiosity I ran both pages through ELA and perhaps not surprisingly, it indicated text areas had been digitally altered:
Although no conclusive, that was enough for me to flag the deposit certificate as highly suspicious.
On the website for Aladin Capital, Kevin Gluckstal (right) is identified as co-founder and CEO of the company.
As per Gluckstal’s Aladin Capital bio;
Kevin D. Gluckstal is experienced and knowledgeable in many fields such as: international economics, real estate, infrastructure development, renewable energy, telecommunications, oil & gas, mining of previous metals, securities and public finance.
Corporation Wiki ties Kevin Gluckstal to “Aladin Capital LLC“, which was purportedly incorporated in Florida on September 15th, 2017.
A search with Florida’s Division of Corporations confirms Aladin Capital LLC was incorporated by Kevin Gluckstal on September 15th.
The address used to incorporate Aladin Capital LLC and provided for Gluckstal actually belongs to Capital Executive Suites.
On their website Capital Executive Suites market virtual office space.
Whether Aladin Capital LLC or Kevin Gluckstal have any physical operations in the US is unclear.
I also noted an Aladin Capital LLC incorporated in Delaware, however I wasn’t able to find anything further.
In any event, Gluckstal’s Facebook profile suggests he married abroad (South East Asia by the looks of it) late last year.
At the time of publication Alexa estimate that 75% of traffic to the AladinCoin website originates out of Vietnam.
In addition to running AladinCoin, Gluckstal is also the founder and CEO of MacroTrend Capital Group.
From the MacroTrend Capital Group website;
Mr. Gluckstal has extensive knowledge of markets which include securities trading, international economics, real estate and infrastructure development, renewable/clean energy, telecom, oil and gas, precious metals mining, public securities and finance, private secondary market finance and institutional banking.
Mr. Gluckstal is CEO and Chief Investment Officer Aladin Capital AG, as well as Chief Investment Officer and General Manager of the MacroTrend Investment Fund, LP.
Gregory Lustic and Barry Manning, two MacroTrend Capital Group executives, also hold executive positions in Aladin Capital.
Whether Gluckstal has any prior MLM experience is unclear.
Read on for a full review of the AladinCoin MLM opportunity.
AladinCoin has no retailable products or services, with affiliates only able to market AladinCoin affiliate membership itself.
The AladinCoin Compensation Plan
AladinCoin affiliates invest funds on the promise of an advertised 0.83% to 1% daily ROI:
- Starter – invest $180 and receive a daily ROI for 180 days
- Trainee – invest $500 and receive a daily ROI for 210 days
- Basic – invest $1000 and receive a daily ROI for 240 days
- Premium – invest $2500 and receive a daily ROI for 270 days
- Pro – invest $8000 and receive a daily ROI for 300 days
- Pro+ – invest $20,000 and receive a daily ROI for 330 days
- Pro X2 – invest $50,000 and receive a daily ROI for 360 days
- VIP – invest $100,000 and receive a daily ROI for 390 days
Note that ROI payouts are made in Aladin Coin (AIC).
AladinCoin Affiliate Ranks
Certain commissions and bonuses within the AladinCoin compensation plan are determined by rank.
There are eight affiliate ranks within the AladinCoin compensation plan.
Along with their respective qualification criteria, they are as follows.
- Associate – sign up and recruit at least two affiliates
- Gold – recruit at least three affiliates and generate at least $60,000 in total downline investment volume or recruit at least twenty affiliates
- Platinum – maintain at least three personally recruited affiliates and generate at least $120,000 in total downline investment volume or recruit at least thirty affiliates
- Ruby – recruit at least five affiliates and generate at least $250,000 in total downline investment volume or recruit at least forty affiliates
- Sapphire – recruit at least six affiliates and generate at least $500,000 in total downline investment volume or recruit at least fifty affiliates
- Diamond – recruit at least eight affiliates and generate at least $1,000,000 in total downline investment volume or recruit at least sixty affiliates
- Blue Diamond – maintain at least eight personally recruited affiliates and generate at least $2,500,000 in total downline investment volume
- Crown Diamond – maintain at least eight personally recruited affiliates and generate at least $5,000,000 in total downline investment volume
AladinCoin affiliates are paid recruitment commissions via a unilevel compensation structure.
A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):
If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.
If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.
AladinCoin cap payable unilevel levels at twenty, with commissions paid out as a percentage of funds invested across these twenty levels.
How many levels an AladinCoin affiliate earns recruitment commissions on is determined by how much they’ve invested:
- Basic affiliates receive 1% on levels 1 to 3 and 0.5% on levels 4 and 5
- Premium affiliates receive 1% on levels 1 to 3 and 0.5% on levels 4 to 8
- Pro affiliates receive 1% on levels 1 to 3 and 0.5% on levels 4 to 10
- Pro+ affiliates receive 1% on levels 1 to 3 and 0.5% on level 4 to 12
- Pro X2 affiliates receive 1% on levels 1 to 3 and 0.5% on levels 4 to 15
- VIP affiliates receive 1% on levels 1 to 3 and 0.5% on levels 4 to 20
ROI Referral Commissions
AladinCoin affiliates receive a referral commission on ROI payments made to downline affiliates.
ROI referral commissions are paid using the same unilevel compensation structure as recruitment commissions (see above), capped down three levels of recruitment.
Percentage levels paid out across these three levels are determined by how much an AladinCoin affiliate has invested:
- Starter affiliates receive 5% on level 1 (personally recruited affiliates)
- Trainee affiliates receive 5% on level 1 and 1% on level 2
- Basic affiliates receive 5% on level 1, 2% on level 2 and 1% on level 3
- Premium and Pro affiliates receive 6% on level 1, 2% on level 2 and 1% on level 3
- Pro+ affiliates receive 7% on level 1, 2% on level 2 and 1% on level 3
- Pro X2 affiliates receive 7% on level 1 and 2% on levels 2 and 3
- VIP affiliates receive 10% on level 1, 3% on level 2 and 2% on level 3
AladinCoin pay residual commissions via a binary compensation structure.
A binary compensation structure places an affiliate at the top of a binary team, split into two sides (left and right):
The first level of the binary team houses two positions. The second level of the binary team is generated by splitting these first two positions into another two positions each (4 positions).
Subsequent levels of the binary team are generated as required, with each new level housing twice as many positions as the previous level.
Positions in the binary team are filled via direct and indirect recruitment of affiliates. Note there is no limit to how deep a binary team can grow.
At the end of each day AladinCoin tallies up new investment volume on both sides of the binary team.
Residual commissions are paid as a percentage of funds tallied up on the weaker binary side.
The exact percentage of funds paid out is determined by AladinCoin affiliate rank:
- Associate – 5%
- Gold – 6%
- Platinum – 7%
- Ruby – 8%
- Sapphire – 9%
- Diamond – 10%
- Blue Diamond – 11%
- Crown Diamond – 12%
AladinCoin pay a Matching Bonus on residual commissions paid to downline affiliates.
The Matching Bonus is paid out using the same unilevel compensation structure recruitment commissions are paid out with (see above), capped at five levels of recruitment:
- Gold affiliates earn a 5% match on level 1 (personally recruited affiliates)
- Platinum affiliates earn a 5% match on levels 1 and 2
- Ruby affiliates earn a 5% match on levels 1 to 3
- Sapphire affiliates earn a 5% match on levels 1 to 4
- Diamond affiliates earn a 5% match on levels 1 to 5
- Blue Diamond affiliates earn a 6% match on levels 1 to 5
- Crown Diamond affiliates earn a 7% match on levels 1 to 5
Rank Achievement Bonus
AladinCoin reward affiliates with a Rank Achievement Bonus when they qualify at the Gold and higher ranks:
- qualify as a Gold and receive $2500 in AIC
- qualify as a Platinum and receive $2500 in AIC
- qualify as a Ruby and receive $5000 in AIC
- qualify as a Sapphire and receive $10,000 in AIC
- qualify as a Diamond and receive $30,000 in AIC
- qualify as a Blue Diamond and receive $50,000 in AIC
- qualify as a Crown Diamond and receive $100,000 in AIC
AladinCoin affiliate membership is tied to investment in one of eight offered packages:
- Starter – $180
Trainee – $500
Basic – $1000
Premium – $2500
Pro – $8000
Pro+ – $20,000
Pro X2 – $50,000
VIP – $100,000
The more a new affiliate invests the higher their income potential via the AladinCoin compensation plan.
Aladin Coin as a cryptocurrency is a classic example of MLM Ponzi points.
AIC has no use or value outside of AladinCoin itself, with affiliates encouraged to invest on lofty promises of future wealth:
The figures above are of course based on nothing more than wishful thinking.
In reality AIC is backed solely by new affiliate investment, despite AladinCoin’s representation that it’s “back up by financial institutes and hedge funds”.
AladinCoin use newly invested funds to pay recruitment commissions and bonuses, as well as AIC ROI withdrawal requests.
Presumably AIC ROI withdrawals are handled through an internal exchange as AIC is not publicly tradeable.
In any event, using newly invested funds to pay existing affiliates a ROI makes AladinCoin a Ponzi scheme.
Being a Florida corporation, AladinCoin through Aladin Capital LLC are required to register their investment opportunity with the SEC.
A search of the SEC’s Edgar database reveals neither AladinCoin, Aladin Capital LLC or Kevin Gluckstal are registered to offer securities in the US.
This means AladinCoin is operating illegally. All the more comical considering Gluckstal’s claim to have “extensive knowledge” of “securities and finance”.
Call my cynical but it appears the sole purpose of AladinCoin and AIC is to screw as many gullible Vietnamese investors out of as much money as possible.
As with any Ponzi scheme, once affiliate investor recruitment slumps so too will ROI revenue.
This will see AladinCoin unable to meet its ROI obligations, eventually prompting a collapse.
The math behind Ponzi schemes guarantees that when they collapse the majority of investors lose money.