No doubt about it, running a Ponzi scheme takes effort. A ruse, no matter how unreasonable and unbelievable, has to be provided. A pattern or structure of revenue flow has to be mapped out. Typically, the scheme has to be plotted on a pyramid. These criteria characterize the basic Ponzi scheme except for few run-of-the-mill Ponzi schemes like Cryptonode.
As with all other Ponzi schemes, Cryptonode fields investors with nothing to invest in except for its affiliate membership. There is no underlying business, product, service, or asset that is to be invested in. Like other Ponzi schemes, it relies solely on new investors.
However, Cryptonode does not provide a structure or pattern of how it intends to keep money flowing to investors and affiliates. Cryptonode guarantees high ROI but its revenue generation is predictable but obscure.
Cryptonode’s ROI is unbelievably high and guaranteed. There is no room for fluctuations and volatility. Surely, the investing world does not operate that way.
Cryptonode is unregulated. It provides a Uk Incorporation certificate on its website. UK incorporation is known to be used by fraudsters who want to incorporate their companies.
Obviously, the only verifiable source of revenue for Cryptonode is new investments. This feature qualifies it as a Ponzi scheme. It uses new investment to pay returns of up to 5 percent per day.
Apart from the impending crash that awaits Cryptonode because of its heavy reliance on new investors, it is also liable to crash because it does not really have a particular structure in place. It is a weak Ponzi scheme.