If all goes by their plan, Sergey Mavrodi and his lieutenants must have floated another ICO scam called the Mavro ICO.
For those who are not familiar with Sergey Mavrodi, he is the ‘cult-like’ figure who founded one of the biggest Ponzi scams in the world called MMM Global.
From his infamous rise to glory and fall in Russia which led to his incarceration and release, this character has created a scam sensation that has taken the world by surprise.
This time around, Sergey Mavrodi has apparently teamed up with some of his folks whose identity cannot be fully confirmed to make more from the blockchain craze driven by dodgy initial coin offerings, ICOs.
With less than 15 days to the launch of the supposed Mavro ICO, it was described as the ‘first decentralized and absolutely transparent platform for Multi Level Marketing structures based on Blockchain Ethereum’. The downside to this claim is that Sergey Mavrodi has never really operated a genuine multi-level marketing business but a Ponzi scheme where old investors are paid with proceeds from deposits of new investors. The baloney goes haywire when there are more waiting lines of old investors looking to cash out.
Whoever put up the website for the ‘project’ must be taking the prospective investors for a fool. Back in 1994 when Sergey Mavrodi’s Ponzi scheme became a problem in Russia, he was arrested and tried under the law for running an illegal financial scam. It is therefore unbelievable that the ‘roadmap’ section of the Mavro ICO website lied that ‘MMM grew rapidly, providing dividends of 300%. But the government closed the offices of MMM due to the threat to the existing regime’. This is a twist of fact, another red flag that the project is what it is- a scam.
By the third quarter of this year, Mavro ICO is promising its prospective investors that it would have succeeded with the ‘Creation of the first decentralized and absolutely transparent platform for Multi Level Marketing system based on Blockchain Ethereum’.
The real intention of the Mavro ICO scam becomes clearer when it said ‘The current problem with the MLM market place rests with payment processing, trustworthiness and integrity. The MAVRO project is the solution to this problem. With the advantages in a peer-to-peer network include security from outside influence such as governments and regulatory agencies. Furthermore, a peer-to-peer network establishes trust among users which can lead to greater transparency for both payment provides but also the actors within a MLM system.’.
That right is a red flag for anyone. In order to make payment anonymous, they are looking to latch-on a decentralised system where people will invest in a phoney token that will not worth anything after the owners of the scheme dumps them on the market.
You are most likely familiar with this saying that ‘If it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck’. Sergey Mavrodi and his inglorious MMM Global has never been genuine and he is likely never going to be one. Those who will hop on this ICO will have a sad tale to tell soon.