Nowadays, It is the norm for Ponzi schemes to try to hide under the blockchain technology, to try to exploit the new world order that cryptocurrencies are bringing about, and to try to reinvent themselves with fake credibility. BTTycoon is a grand example.
BTTycoon is not just a Ponzi scheme. It is also a securities fraud that offers passive returns on BitTorrent (BTT) investments. BTTycoon’s ownership is unknown although it could be inferred from its marketing material being written in Chinese, and a Chinese provider hosting the website, that its owner is Chinese. If BTTycoon is legitimate, then it should be open about who runs or owns it.
As common with most Ponzi schemes, BTTycoon runs on a three-tiered affiliate system and a uni-level compensation structure that places an affiliate at the top of a uni-level team with every personally recruited affiliate placed directly under them down an infinite number of levels. This business model helps BTTycoon to shuffle earnings easily amongst affiliates. It is the pyramid model peculiar to Ponzi schemes.
A close look at BTTycoon reveals that except for its affiliate membership, there is nothing being invested in. There is no underlying product, service, asset, or business being invested in. BTTycoon thrives on new membership. It needs more investors, like Ponzi schemes do, to survive. It is obvious that BTTycoon would fail should new membership stall.
BTTycoon’s ROI is absurdly high and guaranteed. ROI could be high but the guarantee on earnings is a red flag. Fluctuations characterize investing. As such an investment opportunity that guarantees consistently high returns should be frowned at.
The token of BTTycoon’s operation, BitTorrent has an interesting trading history that prospective investors should look at. In 2019, BTT slumped after early adopters cashed out. BTT has been resurging over the past few months especially with the support of TRON, a cryptocurrency company founded by Justin Sun in 2017. Neither TRON nor BTTycon is registered with the Securities and Exchange commission which makes them illegal. As it seems, BTTycoon is just a recruitment tool to rope new investors into BTT with the hope that new investment pumps BTT. Should the owners and early adopters of BTTycoon decide to cash out, the majority of BTTycoon affiliates would take a loss.
BTTycoon is a Ponzi scheme, a securities fraud that presents its investment plans as jobs and companies. When credibility through association fails, and the pressure to reinvest stops working, the pyramid structure it is plotted on would collaspe leaving the affiliates with a worthless token.