IdeaCoin Review: “IdeaBot” ICO lending Ponzi
IdeaCoin provide no information on their website about who owns or runs the business.
The IdeaCoin website domain (“ideacoin.co”) was privately registered on October 19th, 2017.
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.
IdeaCoin has no retailable products or services, with affiliates only able to market IdeaCoin affiliate membership itself.
The IdeaCoin Compensation Plan
IdeaCoin affiliates acquire pre-generated IDEA points from the company’s owners.
IDEA points are sold to IdeaCoin affiliates for 85 cents to $1.05 each.
Once acquired, IDEA points are “lent” back to IdeaCoin on the promise of a monthly ROI of up to 45%.
- invest $100 to $499 and receive a daily ROI for 240 days
- invest $500 to $999 and receive a daily ROI plus 0.05% bonus daily ROI for 210 days
- invest $1000 to $4999 and receive a daily ROI plus 0.1% bonus daily ROI for 180 days
- invest $5000 to $9999 and receive a daily ROI plus 0.2% bonus daily ROI for 150 days
- invest $10,000 to $49,999 and receive a daily ROI plus 0.25% bonus daily ROI for 120 days
- invest $50,000 to $99,999 and receive a daily ROI plus 0.3% bonus daily ROI for 90 days
Note that IDEA points acquired during the company’s ICO cannot be put towards lending.
IdeaCoin pay referral commissions out 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.
IdeaCoin pay investment and lending ROI referral commissions down seven levels of unilevel team recruitment:
- level 1 (personally recruited affiliates) – 8%
- level 2 – 3%
- level 3 – 2%
- levels 4 to 6 – 1%
- level 7 – 0.5%
IdeaCoin 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 IdeaCoin tally up new investment volume on both sides of the binary team.
For each $2500 matched on both sides of the binary team, a “cycle” is generated.
IdeaCoin pay a $100 commission per binary cycle generated.
IdeaCoin affiliates are able to earn up to four binary cycles every 24 hours ($400).
IdeaCoin affiliate membership is free, however free affiliates can only earn referral commissions.
Full participation in the IdeaCoin MLM opportunity requires a minimum $100 investment in IDEA points.
IdeaCoin claim to generate ROI revenue through “IdeaBot”.
IdeaBot is described as a “self-acting (AI managed) profitable trading system which works 24/7”.
No evidence of IdeaBot existing or IdeaCoin using revenue generated through the trading bot to pay affiliates is provided.
In the IdeaCoin whitepaper, the company’s owners claim;
At the outset, we were also trading on signals, investing in various funds, ICO. And we lost a lot of money too.
This infers that through IdeaBot the owners of IdeaCoin are now generating profit.
This begs the question of why then are IdeaCoin soliciting investment from randoms over the internet.
If IdeaBot is already up and running and generating enough profit to sustain an investment scheme, why share generated revenue with the public?
As it stands the only verifiable source of revenue entering IdeaCoin is newly invested funds.
Using newly invested funds to pay existing affiliates a monthly ROI makes IdeaCoin a Ponzi scheme.
Lending ICO Ponzis like IdeaCoin play out as follows:
Admins (who are typically anonymous) offload worthless pre-generated points in exchange for real money. In this case it’s IDEA points.
The admins then use some of this money to pay promised ROIs for as long as new affiliates sign up.
Once affiliate recruitment dries up so does the ROI reserve.
When a predetermined threshold is reached, the anonymous IdeaCoin admins pull a runner with what’s left.
Early IdeaCoin investors make a bit of money (mostly via recruitment of new investors). But same as any other Ponzi scheme, the reality of such scams is that the majority of participants eventually lose money.