TradeNetCoin provide no information on their website about who owns or runs the business.
The TradeNetCoin website domain (“tradenetcoin.io”) was privately registered on December 22nd, 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.
TradeNetCoin has no retailable products or services, with affiliates only able to market TradeNetCoin affiliate membership itself.
The TradeNetCoin Compensation Plan
TradeNetCoin affiliates acquire pre-generated TNC points from the company’s anonymous owners.
TNC points are sold to TradeNetCoin affiliates for 65 cents to $1.50 each.
Once acquired, TNC points are “lent” back to TradeNetCoin on the promise of an advertised ROI of up to 150% a month.
- invest $100 to $999 and receive a daily variable ROI rate for 219 days
- invest $1000 to $4999 and receive a daily variable ROI rate plus 0.15% bonus daily rate for 159 days
- invest $5000 to $9999 and receive a daily variable ROI rate plus 0.25% bonus daily rate for 99 days
- invest $10,000 to $50,000 and receive a daily variable ROI rate plus 0.35% bonus daily rate for 69 days
TradeNetCoin 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.
TradeNetCoin pay referral commissions as a percentage of invested funds across a unilevel team as follows:
- level 1 (personally recruited affiliates) – 8%
- level 2 – 3%
- level 3 – 1%
- level 4 – 0.5%
- level 5 – 0.2%
- levels 6 and deeper – 0.1%
TradeNetCoin affiliate membership is free, however to participate in the MLM opportunity at least 50 TNC points must be purchased from the company’s owners.
With scam after scam collapsing in the MLM ICO lending niche, TradeNetCoin have taken it upon themselves to address the Ponzi issue.
3. Why is TradeNetCoin not a fraud or Ponzi scheme?
The Ponzi scheme is based on the pyramid, when it is necessary to attract investments of new and new investors to pay dividends.
We do not seek to attract a large number of new investors to pay dividends to existing ones.
We use money of investors for investments in our existing businesses, from which profits we pay dividends.
Agree, this does not seem to be the usual scheme of Ponzi.
What we primarily learn from this is that whoever is running TradeNetCoin is likely operating from a non-English speaking country.
Secondarily, that TradeNetCoin’s business model fails the Ponzi logic test.
If the company’s anonymous owners already had “existing businesses” capable of generating a 150% monthly ROI, why share that revenue stream with randoms over the internet?
The reality of TradeNetCoin is that newly invested funds are the sole verifiable source of revenue entering the company.
Using newly invested funds to pay existing affiliates a monthly ROI of up to 150% makes TradeNetCoin a Ponzi scheme.
Lending ICO Ponzis like TradeNetCoin play out as follows:
Admins (who are typically anonymous) offload worthless pre-generated points in exchange for real money. In this case it’s TNX points.
TradeNetCoin’s 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 TradeNetCoin’s ROI reserve.
When a predetermined threshold is reached, TradeNetCoin’s anonymous admins do a runner with what’s left.
Early TradeNetCoin 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.