Octoin Review: OCC lending daily ROI Ponzi scheme

Octoin provide no information on their website about who owns or runs the business.

The Octoin website domain (“octoin.com”) was registered on June 28th, 2017.

Matt Blunt is listed as the owner, with an address in London, UK also provided.

Further research reveals the address provided belongs to Regus, who provide virtual office services.

A UK incorporation certificate for “Octoin Limited” is provided on the Octoin website.

Octoin Limited was incorporated on August 9th, 2017, using the same Regus address in the Octoin domain registration.

Matt Blunt is the sole Director listed for the company.

As represented by Octoin, “Matt Blunt” likely doesn’t exist.

UK incorporation is dirt cheap and for the most part unregulated. It is a favorite for scammers looking to incorporate dodgy companies.

As evidenced by listed affiliate “leaders” on the Octoin website and Alexa traffic estimates (Indonesia 24%, China 16% and Japan 9%), Octoin is primarily marketed in across Asia.

There’s a good chance whoever is actually running Octoin is based out of Indonesia or China.

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.

Octoin Products

Octoin has no retailable products or services, with affiliates only able to market Octoin affiliate membership itself.

The Octoin Compensation Plan

Octoin affiliates purchase OCC points from Octoin’s anonymous company owners.

Although not explicitly clarified on the Octoin website, I believe 1 OCC = $1 USD.

Once acquired, Octoin points are parked with the company on the promise of an advertised daily variable ROI for 60 days.

If an Octoin affiliate elects for a longer maturity period, they are promised an increased daily ROI bonus:

  • 90 day maturity period = 5% bonus
  • 120 day maturity period = 10% bonus
  • 150 day maturity period = 12% bonus

A daily ROI bonus can also be achieved by convincing others to invest:

  • Assistant (invest at least $100 and convince at least ten affiliates to invest at least $300 in total) – bonus 3% daily ROI
  • Supervisor (invest at least $300 and convince at least thirty affiliates to invest $5000 in total) – bonus 5% daily ROI
  •  Manager (invest at least $1000 and convince at least one hundred affiliates to invest $10,000 in total) – bonus 7% daily ROI
  • Leader (invest at least $3000 and convince at least one thousand affiliates to invest $100,000 in total) – bonus 10% daily ROI
  • Director (invest at least $10,000 and convince at least three thousand affiliates to invest $1,000,000 in total) – bonus 15% daily ROI
  • Partner (invest at least $50,000 and convince at least five thousand affiliates to invest $10,000,000 in total) – bonus 20% daily ROI

Referral Commissions

Octoin pay referral 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.

Octoin cap payable unilevel levels at seven, with commissions paid out as a percentage of ROI payments made across these seven levels:

  • level 1 (personally recruited affiliates) – 10%
  • level 2 – 7%
  • level 3 – 5%
  • level 4 – 2%
  • level 5 – 1%
  • levels 6 and 7 – 0.5%

Joining Octoin

Octoin affiliate membership is free, however free affiliates can only earn referral commissions.

No specific minimum investment amount is specific on the Octoin website, however the compensation plan suggests a $100 is the set minimum.

Conclusion

Octoin claims to generate external revenue through cryptocurrency “mining and investment portfolios”. However no evidence of the portfolios or any external revenue generation is provided.

Furthermore Octoin’s claims fail the Ponzi logic test.

Octoin claim its affiliates earned “more than 1600%” in returns during 2017.

Considering Octoin didn’t exist August, that’s a 1600% ROI paid out in less than five months.

If Octoin’s anonymous owners had mining and investment portfolios capable of legitimately generating such a high return is such a small amount of time, why would they be wasting time soliciting investment from randoms over the internet?

It makes zero sense to share a 1600% ROI every five months.

The reality of Octoin is that new affiliate funds are the only verifiable source of revenue.

Using newly invested funds to pay existing affiliates a daily ROI makes Octoin a Ponzi scheme.

At some point Octoin will likely launch OCC points on public exchanges, which is typically part of the ICO Ponzi exit-strategy.

Octoin’s anonymous owners accept real money for OCC points and pay a daily ROI for as long as new investment covers their liabilities.

Once they feel they’re starting to run out of money (when affiliate recruitment drops), they do a runner.

This leaves investors with worthless OCC points, the value of which was only being upheld by the attached Ponzi scheme, plummets toward its actual value of $0.

In the western world scams like Octoin are known as lending Ponzi schemes. The model was originally pioneered by BitConnect, which recently collapsed.

The same thing will happen to Octoin affiliates, with only those who invested early and the company’s anonymous owners making any money.

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