ETHPlus Review – Smart-Contract Ponzi Scheme MLM?

Welcome to My ETHPlus Review! 

It’s 2021 and perhaps, crypto multi-level marketing (MLM) companies are not new. In this website alone, we’ve reviewed over a dozen similar programs, such as 1 Click Trading System and Clicxads. Unfortunately, we haven’t seen much of a legitimate one. 

Probably because this niche is often used as a breeding ground for pyramids and Ponzi Schemes to develop. 

So how come it keeps on scamming anyone?

Probably because most people don’t really know much about it and scammers tend to take advantage of this to deceive people. 

Nonetheless, cryptocurrency itself is real and some people are really earning using this digital currency. However, before diving into a seemingly good platform that promotes this, it’s best to do a background check first to know what it’s really about.

In this post, we will discuss ETHPlus to know if it’s something different — and I mean in a good way.

So sit back, relax, and read this honest ETHPlus review.

ETHPlus is a cryptocurrency smart contract company that promotes itself as an MLM.

A smart contract-based MLM Platform has all its transactions and investor's data stored in a specific decentralized blockchain network, which can be viewed anytime and but can’t be modified. 

The transactions are automated and the overall revenue from the business gets increased. That’s great, right? 

However, when it comes to ETHPlus, it appears to be a Ponzi Scheme. Yes, it offers a crypto investment opportunity; however, they are not registered to do securities. So, it’s definitely operating illegally.

Checking its website domain, www.ethplus.net, it still hasn't reached a year in operations but at the time of this writing, the site is not inaccessible. 

Has it stopped operating already?

Apparently, ETHPlus was registered on April 10, 2020, under the registrant organization, OmegaSquad, with a registrant address in Santo Domingo, Dominican Republic. 

Probably, the founders reside in that address as of this moment. 

With regards to the founders, unlike most of the dubious crypto MLM that we reviewed, ETHPlus has actually names mentioned that are associated with the opportunity. 

It said that ETHPlus was founded and headed by Fernando Urdaneta and Jonathan Valle. As mentioned, the website domain is addressed in Santo Domingo and this syncs up with Fernando Urdaneta who, according to his Facebook profile, was originally from Venezuela but now resides in Santo Domingo. 

Urdaneta is listed as the Head of SEO while Valle is the Commercial Director but further digging points that Jonathan Urdaneta is actually the CEO. He even claimed it in one of the company’s marketing YouTube videos. 

Why Urdaneta is attempting to demote his role within ETHPlus on the company’s website is unclear. Given the lack of anyone else presented as being in a position of authority within EthPlus, Urdaneta assumed to run the company.  

ETHPlus Product Line

ETHPlus is one of those crypto MLM that doesn’t have retailable products or services.

What is offered is the promise of ROI through investments made but then again, it’s more likely that the ETHPlus affiliates are marketing the affiliate membership itself. 

Without a doubt, ETHPlus is a scam.

Based on how it works, it solely depends on the investment of recruited affiliates, making it a pyramid and a Ponzi scheme. 

It’s also not a Better Bureau Business (BBB) accredited opportunity. 

On top of this, being a passive earning opportunity, it’s also not properly registered. Thus, it operates illegally.

In case you forgot, its website appears to be inaccessible, which is kind of suspicious. 

Well, what happened? We don’t know. Perhaps it has ceased or shut down for good, which is not surprising news for alleged scams.

Apparently it seems that ETHPlus’ opportunity is geared towards recruitment. This means that making money is based on inviting investors to join the platform. Members, on the other hand, are compensated for their recruits so they are encouraged to build a team for more commissions.

Using the guideline created by the Federal Trade Commission (FTC), such programs are, without a doubt, a pyramid.

It’s unstable and illegal so if I were you, I won’t waste my time and money here.

If that’s not enough, ETHPlus also works like a Ponzi scheme.

Why?

It deceives affiliates about the true source of the revenue and investors remain unaware that other investors are the source of funds, which is true with ETHPlus as it works as a smart contract Ponzi scheme. It is nothing more than a matrix-based platform where affiliates make money from their recruit. 

No recruits, no profit and it won’t be long until such a program would collapse.

To learn more about ETHPlus, you can watch the video below:

Recruitment is basically the sole source of funds in ETHPlus and affiliates earn an income through recruitment commissions. As much as I don’t encourage anyone to join this or any similar programs, I think it’s still fair for you to know how the compensation plan works.

Recruitment Commissions - You earn a commission of 0.012 ETH from your recruits when they sign up for the 0.05 ETH recurring cost and that’s about $21.84.

Matrix Investment

Their investment opportunity follows a 2x17 matrix where members are placed in a position under you. From this, you will earn different amounts of ETH for each level.

A 2×17 matrix places an ETHPlus affiliate at the top of a matrix, with two positions directly under them. These 2 positions form the first level of the matrix. The second level of the matrix is generated by splitting these first two positions into another two positions each. 

Levels three to seventeen of the matrix are generated in the same manner, with each new level housing twice as many positions as the previous level.ETHPlus groups multiple matrix levels together under a single investment entry fee.

• Levels 1 To 9 – Invest 0.17 ETH And Receive 0.01 ETH From Anyone Placed Under You Across Levels 1 To 9 (1022 Positions)
• Level 10 – Invest 0.35 ETH And Receive 0.02 ETH From Anyone Placed Under You In Level 10 (1024 Positions)
• Level 11 – Invest 0.8 ETH And Receive 0.05 ETH From Anyone Placed Under You In Level 11 (2048 Positions)
• Level 12 – Invest 1.6 ETH And Receive 0.1 ETH From Anyone Placed Under You In Level 12 (4096 Positions)
• Level 13 – Invest 2.5 ETH And Receive 2.5 ETH From Anyone Placed Under You In Level 13 (8192 Positions)
• Level 14 – Invest 3.5 ETH And Receive 3.5 ETH From Anyone Placed Under You In Level 14 (16,384 Positions)
• Level 15 – Invest 6.6 ETH And Receive 0.4 ETH From Anyone Placed Under You In Level 15 (32,768 Positions)
• Level 16 – Invest 15.2 ETH And Receive 0.8 ETH From Anyone Placed Under You In Level 16 (65,534 Positions)
• Level 17 – Invest 24.5 Eth And Receive 1.6 Eth From Anyone Placed Under You In Level 17 (131,070 Positions)

Positions in the matrix are filled when directly or indirectly recruited affiliates purchase positions. Note that matrix levels up to 13 are recurring 30-day investments and reinvestment is required to continue earning. 

Investment across levels 14 and onward are one-time.

Investment Referral Commissions - You’ll get a referral commission when members sign up for a matrix level position as follows:

• Recruit A Member Who Invests In A Level 1 To 9 Position And Receive 0.04 ETH
• Recruit A Member Who Invests In A Level 10 Position And Receive 0.09 ETH
• Recruit A Member Who Invests In A Level 11 Position And Receive 0.15 ETH
• Recruit A Member Who Invests In A Level 12 Position And Receive 0.24 ETH
• Recruit A Member Who Invests In A Level 13 Position And Receive 0.34 ETH
• Recruit A Member Who Invests In A Level 14 Position And Receive 0.42 Eth
• Recruit A Member Who Invests In A Level 15 Position And Receive 0.51 ETH
• Recruit A Member Who Invests In A Level 16 Position And Receive 0.7 ETH
• Recruit A Member Who Invests In A Level 17 Position And Receive 1.26 ETH

Joining as an affiliate comes with a recurring monthly membership that costs 0.05 ETH every 90 days. That’s about $90 for every 3 months, which is not a small amount but wait, this is not the only fee you’ll shoulder.

To fully participate in the income opportunity and ETHPlus’ compensation plan, it would cost you a recurring fee of 55.22 ETH. This is roughly $20,000, which is still subject to 30-day reinvestment at the lower tiers.

PROS

Honestly, there’s nothing really to like about this opportunity. After knowing it’s a pyramid scheme and a smart-contract Ponzi Scheme, which is clearly a crypto MLM scam, would you still opt to join such an opportunity?  

CONS

Expensive But Not Worth It

Being a member would roughly cost you $90/every 3 months, which is estimated at $30/month. While it’s not a big deal for some people, it’s not practical. You barely get anything out of it since you’re not eligible to earn commissions.

If that’s not enough, imagine shelling out $20,000 for the full participation in their compensation plan. That’s too much! Who in their right mind would go to such an opportunity with no assurance? 

Not Registered

ETHPlus comes with promised returns from investment and since it’s a passive investment opportunity, it is considered a security and it requires proper authorization. However, it is not registered, therefore, it's operating illegally and breaking security laws. This alone can be a major red flag to flee from such opportunities!

Telltale Of A Pyramid And A Ponzi Scheme

The way ETHPlus’ compensation plan works, it’s clearly an obvious Ponzi scheme. They have no retail sales and it’s solely based on recruitment, making it a definite pyramid scheme. 

I haven’t seen much information about ETHPlus’ training tools and support but just like similar programs, you will have access to the back office and training materials. But I couldn’t even access the website. So, I really don’t know. 

Well, unfortunately, ETHPlus is one of those crypto MLM scams you’ll have to debunk right away. It may come with an enticing way to generate income but don’t be deceived, it’s obviously a pyramid scheme in disguise.
There are no clear details as to who owns the company, no retail products to sell, no proof of proper registration, and the way it works — recruitment — are enough reasons to stay away from this program.

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Thank you for reading my ETHPlus review. As always, we are more than happy to read your thoughts and questions so please feel free to leave them below.