CryptoGain Review: BitLake Ponzi scheme rebooted
CryptoGain provide no information on their website about who owns or runs the company.
The CryptoGain website domain (“cryptogain.biz”) was registered on October 22nd, 2017.
The registration appears to contain bogus information (false address).
Despite existing as of only about a week or so ago, Crypto Gain claims to have “many years of expertise”.
The official CryptoGain Facebook group has one admin, Bernie Thompson.
The Thompson account appears to be bogus, having only been created on or around October 26th, 2017.
A UK incorporation number is provided on the CryptoGain website, which corresponds to “BitLake Limited”.
BitLake Limited was incorporated on June 14th, 2017, through a retail/residential address in Southall, UK.
Warran ONeal is listed as the sole officer of the company, with no further information provided.
Whoever ran BitLake appears to also be running CryptoGain.
As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.
CryptoGain has no retailable products or services, with affiliates only able to market CryptoGain affiliate membership itself.
The CryptoGain Compensation Plan
CryptoGain affiliates invest bitcoin on the promise of a perpetual daily ROI.
- Dash – invest 0.001 to 5 BTC and receive a 10% daily ROI
- Ethereum – invest 5.001 to 10 BTC and receive a 12% daily ROI
- Bitcoin – invest 10.001 or more BTC and receive a 15% daily ROI
Referral commissions are paid on invested funds down two levels of recruitment (unilevel):
- 5% on level 1 (personally recruited affiliates) and
- 2% on level 2
CryptoGain affiliate membership is free, however free affiliates can only earn referral commissions.
Full participation in the CryptoGain MLM opportunity requires a minimum 0.001 BTC investment.
BitLake was a Ponzi scheme that launched around August, 2017.
Like CryptoGain, the scam offered 10%, 12% and 15% “forever” daily ROI investment plans.
Within a few weeks CryptoGain collapsed, leaving most investors with a loss.
CryptoGain claim they generate ROI revenue through cryptocurrency mining.
We have our own state-of-the-art infrastructure and cutting edge technologies for cryptocurrencies mining.
No proof of any such infrastructure of cryptocurrency mining taking place is provided.
CryptoGain’s business model also fails the Ponzi logic test.
If the company did indeed have mining infrastructure capable of producing a perpetual 15% daily ROI, why would they need to solicit investment from the public?
The only verifiable source of revenue entering CryptoGain is affiliate investment.
The use of new investment to pay existing investors makes CryptoGain a Ponzi scheme.
As with all Ponzi schemes, once affiliate recruitment slows down so too will new investment.
This will starve CryptoGain of revenue, leaving it unable to meet its “daily forever” ROI liabilities.
As with BitLake, when CryptoGain inevitably collapses the majority of affiliate investors will lose money.