Why you should not Bank on Paraiba.

Paraiba is quite innovative with its scam scheme. It poses as a “private bank” of sorts, and it offers a security. But, essentially, Paraiba is just one of those crypto currency trading Ponzi schemes disguised in a unique way.

A major reason to doubt the legitimacy of Paraiba would be its unknown ownership. Its website (Paraiba.world) offers no information about who owns or runs it. Its marketing pitch, though, cites Erich Ely as its CEO.

There is not much information about Erich Ely. He used to be a promoter of the defunct One Coin Ponzi scheme. A Google search of Erich Ely presents an obscure figure with “years of experience in sales” according to Paraiba’s marketing material.

Investors would be in the right to expect, at least, a level of transparency about the ownership of a “unique private bank” and a multilevel marketing company that claims to deliver ” financial solutions for corporates, businesses, and individuals.

It is difficult to ascertain the legitimacy of Paraiba. Paraiba provides an incomplete corporate information on its website. It is also worthy of concern that Paraiba has already gotten the Standard Consumer warning for Illegal securities dealing by the German regulator, BaFin. Also, Paraiba provides no evidence of being incorporated or certified in any jurisdiction it is soliciting investments from.

As if Paraiba’s legitimacy issue is not enough, Paraiba has no investible asset, product, or service. Except for its affiliate membership, there is no underlying asset being invested in at Paraiba.

What Paraiba’s lack of investible assets and dependence on new investors holds for its future is worrisome. When new membership stalls, the structure of Paraiba falters and a crash would be imminent.

Talking about structure, Paraiba runs on a multi tiered ranking system and 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 down an Infinite number of levels.

The unilevel compensation structure is typical of Ponzi schemes. Coupled with the multi tiered ranking system, Paraiba codes investments. That is, they help high ranking members get a percentage of investment from new investors. This structure also help to create a semblance of earning amongst investors by the shuffling of new invested funds.

The implication of these structure is an impending crash that would come from either admins and early adopters cashing out or difficulty in getting new investors. The Ponzi math ensures that for early adopters to gain, new investors have to lose money.

Apart form the fact that Paraiba does not meet up with any regulatory ramifications of being a bank, there is no proof that Paraiba has an external source of revenue apart from new investments. Also, there is no evidence of trading provided though Paraiba claims to get revenue from crypto currency trading.

Paraiba is not just a Ponzi scheme but a securities and bank fraud scheme using the cryptocurrency escape.


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