iGoCrypto Review: $500 crypto education & dodgy mining investment
iGoCrypto provide no information on their website about who owns or runs the business.
The iGoCrypto website domain (“igocrypto.com”) was privately registered on November 2nd, 2017.
Further research reveals iGoCrypto marketing material naming Chris Kellar (CEO) and Clinton Aragona (President) as co-founders of the company.
Other than an “I’m obviously new to the industry” YouTube video from four years ago, I was unable to put together an MLM history for Kellar.
Clinton Aragona (also goes by “Clinten Aragona”) first appeared on BehindMLM as co-founder of Lead System Network.
Launched in mid 2014, Lead System Network was a matrix-based cash gifting scheme.
Alexa traffic estimates show a steady decline in traffic to the Lead System Network website throughout 2017.
Read on for a full review of the iGoCrypto MLM opportunity.
iGoCrypto market cryptocurrency education, cryptocurrency mining (service and equipment) and a “tool suite”.
The education is branded as “iGoCrypto University” and consists of ‘live & video training, from the basics to advanced arbitrage‘.
Specific topics covered include “crypto glossary”, “how to buy your first bitcoin”, “how to acquire bitcoin” and “crypto wallets”.
Access to iGoCrypto costs $50 a month or annually or $500 annually.
Mining equipment is available in the US and Canada. Actual mining services are available outside of the US and Canada.
The “tool suite” appears to be access to a cryptocurrency e-commerce platform.
Access to iGoCrypto’s tool suite is $10 a month or $100 annually.
iGoCrypto also are claiming they’ll open a cryptocurrency exchange in 2019.
The iGoCrypto Compensation Plan
iGoCrypto pay affiliates to sell access to iGoCrypto University and e-commerce tools.
iGoCrypto Affiliate Ranks
There are seven ranks within the iGoCrypto compensation plan.
Along with their respective qualification criteria, they are as follows:
- Student Advocate – sign up as a free iGoCrypto affiliate (no MLM commissions)
- Advocate – pay $100 affiliate membership fee and generate $500 in PV or sign up for affiliate autoship
- Silver Advocate – have two Advocates in your downline (one on both sides of the binary team)
- Gold Advocate – have eight Silver Advocates in your downline (four on both sides of the binary team)
- Platinum Advocate – have eight Gold Advocates in your downline (four on both sides of the binary team)
- Diamond Advocate – have eight Platinum Advocates in your downline (four on both sides of the binary team)
- Founding Advocate – have eight Diamond Advocates in your downline (four on both sides of the binary team)
PV stands for “Personal Volume” and is sales volume generated by an affiliate’s own purchases and retail customers.
Affiliate autoship is the monthly $50 iGoCrypto University subscription.
Retail and Recruitment Commissions
iGoCrypto affiliates are paid $35 when they sell access to iGoCrypto University and $5 to the e-commerce tool suit to retail customers.
The iGoCrypto compensation plan is vague on this, but I believe the same commissions are paid when personally recruited affiliates purchase the same.
After the initial commission, a 5% monthly residual commission is paid on both services.
iGoCrypto 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 week sales volume is tallied up on both sides of the binary team.
Residual commissions are paid as a percentage of sales volume generated on the weaker binary side based on rank:
- Silver Advocates earn 6%
- Gold Advocates earn 7%
- Platinum Advocates earn 8%
- Diamond Advocates earn 9%
- Founding Advocates earn 10%
Infinity Compounding Bonus
Platinum Advocate and higher ranked iGoCrypto affiliates qualify for the Infinity Compounding Bonus.
The Infinity Compounding Bonus is paid 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.
The Infinity Compounding Bonus is paid out as a percentage of residual binary commissions earned by unilevel team members.
The bonus is tracked through generations in each unilevel leg, defined when a Platinum Advocate or higher ranked affiliate is found in that leg.
The first Platinum Advocate or higher ranked affiliate in a unilevel leg caps off the first generation of that leg.
The second generation of that leg begins immediately after this first Platinum Advocate.
If a second Platinum Advocate or higher ranked affiliate exists deeper in the leg, they cap off the second generation.
The third generation for that leg then begins and so on and so forth.
Using this generational structure within the unilevel team, the Infinity Compounding Bonus enables an iGoCrypto affiliate to earn down seven generations per unilevel leg.
How many generations an iGoCrypto affiliate earns the Infinity Compounding Bonus on is determined by rank:
- Platinum Advocates earn 1% on the first generation and 0.5% on the second and third
- Diamond Advocates earn 1% on the first and second generations and 0.5% on the third to fifth
- Founding Advocates earn 1% on the first to third generations and 0.5% on the fourth to seventh
iGoCrypto affiliate membership is $100.
There is also a free affiliate membership option, however free iGoCrypto affiliates only earn single-level commissions (non-MLM).
I think it’s obvious nobody outside of the iGoCrypto affiliate-base will be paying $50 a month for entry-level cryptocurrency “education”.
Cryptocurrency is pretty widespread these days, and I’d be willing to guarantee anything in iGoCrypto’s entry-level modules can be readily be found for free elsewhere.
And even if it wasn’t, once digested, why would you continue to pay $50 a month for access to the information?
The answer lies in iGoCrypto’s compensation plan:
A Qualified Advocate means that a minimum of $500 of iGoCrypto products, or a minimum of a $50 monthly subscription have been personally sold and/or purchased.
The $50 a month iGoCrypto University fee qualifies affiliates to earn MLM commissions.
And that pretty much sets out the bulk of iGoCrypto’s current offering: Sign up, pay $50 a month and get paid to recruit others who do the same.
This alone makes iGoCrypto a pyramid scheme.
Retail sales could legitimize the opportunity but is unlikely given the nature of the “products” and associated cost.
The e-commerce platform seems geared towards merchants, but why pay $10 a month for something you can set up yourself. A startup charging merchants to use their cryptocurrency e-commerce platform (full of affiliates) makes no sense.
The core problem in iGoCrypto’s business model is affiliates can just ignore retail altogether, pay their monthly fee and continue to earn from a recruited downline.
Other aspects of iGoCrypto are just as problematic.
In their marketing material, iGoCrypto claims to be “backed by (an) existing global exchange and international mining conglomerate”.
There is of course no evidence of this relationship provided. And, as far as I can tell, co-founders Chris Kellar and Clinton Aragona don’t have ties to any major cryptocurrency players, at least not publicly.
Of major concern is iGoCrypto’s proposed mining products, which the company is mostly keeping secret for now.
As above, what we do know is the company claims it will sell mining equipment in the US and Canada. Outside of these two highly regulated jurisdictions, iGoCrypto will offer mining investment positions ala Mintage Mining.
This is a major red-flag as cryptocurrency mining isn’t illegal in either the US or Canada.
The only reason an MLM company would not offer mining contracts specifically in the US and Canada is if it was trying to hide something from regulators.
This I suspect pertains to the actual corporate structure behind iGoCrypto.
To operate legally in the US, an MLM investment opportunity of any kind has to register itself with the SEC.
As at the time of publication, neither iGoCrypto, Chris Kellar or Clinton Aragona are registered with the SEC.
Registration would require, among other things, iGoCrypto to publicly disclose specifics about its mining operations and corporate structure.
This is legally required for any MLM company offering securities in the US, irrespective of whether said securities are offered in the US or abroad.
In that sense iGoCrypto’s “we wont’ sell mining investment contracts in the US or Canada” is pseudo-compliance.
Which is telling, considering the lengths iGoCrypto are going to convey they intend to operate legally in the US:
Long story short, iGoCrypto with no retail sales is a pyramid scheme. Any type of passive investment activity or promotion within the company will require it to register with the SEC.
No matter what the company says, anything less and iGoCrypto are just another illegally operating MLM cryptocurrency begging to be shut down.