Bitles provides no information on its website about who owns or runs the company.
A May 2019 UK incorporation certificate is provided, which corresponds to “Bitles Limited”.
UK incorporation is dirt cheap and effectively unregulated. It is a favored jurisdiction for scammers looking to incorporate dodgy companies.
Bitles website domain (“bitles.eu”) was privately registered on April 11th, 2019.
At the time of publication Alexa cites Japan (24%), India (11%) and Vietnam (7%) as the top three sources of traffic to Bitles website.
As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.
Bitles markets BTL token investment plans as a retail product:
Bitles advertises daily returns ranging from 0.3% to 6%.
Bitles pays commissions on BTL token investment by retail customers and personally recruited affiliates.
There are fifteen ranks within Bitles’ compensation plan.
Along with their respective qualification criteria, they are as follows:
A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):
If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.
If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.
Bitles caps unilevel residual commissions at ten levels of recruitment:
Bitles’ compensation plan states the above percentages are bumped by 1% if three or more individual investments are made:
Upon purchasing three or more different Bitles savings plans, you earn an additional +1% of the base percentage with each new plan. If for example, you purchase eight different savings plans, your profit from the Direct Bonus will be 10%.
Unless I’m missing something though, the math doesn’t add up.
Eight investments would correspond to +8%, which when added to level 1’s 3% makes 11%, not 10%.
A binary compensation structure places an affiliate at the top of a binary team, split into two sides (left and right):
The first level of the binary team houses two positions. The second level of the binary team is generated by splitting these first two positions into another two positions each (4 positions).
Subsequent levels of the binary team are generated as required, with each new level housing twice as many positions as the previous level.
Positions in the binary team are filled via direct and indirect recruitment of affiliates. Note there is no limit to how deep a binary team can grow.
At the end of each day Bitles tallies up new investment volume on both sides of the binary team.
Affiliates are paid up to 10% of funds generated on their weaker binary team side.
Once paid out on, funds are matched with the stronger binary team side and flushed.
Any leftover volume on the stronger binary team side is carried over.
The Passive Bonus is paid on returns paid to unilevel team affiliates.
The Leadership Bonus is a bonus percentage on binary residual commissions paid to Director and higher ranked affiliates.
Bitles affiliates can continue earning the Leadership Bonus until a personally recruited affiliate reaches their current rank.
The Quick Start Bonus rewards Bitles affiliates for qualifying at specific ranks within thirty days of signing up:
Bitles rewards affiliates who qualify at the Diamond Director and higher ranks with the following bonuses:
Bitles affiliate membership is tied to an initial $50 to $30,000 investment.
The more an affiliate invests, the higher their income potential via Bitles’ compensation plan.
Bitles markets itself as a passive investment opportunity.
Bitles lets you hold your crypto and receive BTL tokens with a profit from 30% per month.
Bitles affiliates invest USD and/or cryptocurrency into BTL tokens, on the promise of daily returns.
BTL tokens are worthless outside of Bitles. Affiliates earn returns and commissions in BTL tokens, which can be exchanged for actual money via an internal exchange.
BTL tokens currently have an internal exchange value of 42 cents.
According to Bitles website, the internal BTL token value increases by 10% every month.
As far as I can tell, there’s no meaningful distinction between Bitles affiliate and non-affiliate investors.
All members immediately have the option to become an agent. Agents earn agency commissions for sales and affiliate activities as part of the Affiliate Plan.
There might be a small number of retail investors in the lower tiers, however it’s expected the majority of Bitles’ company-wide revenue is sourced from affiliates.
Getting down into the nuts and bolts of the investment opportunity, Bitles claims to generate returns via a trading bot.
Cryp-Spider AI provides registered users with the ability to connect to a single trading fund managed by high-frequency bots that trade intraday using more than 25 complementary scalping strategies.
This trading system has been successfully tested over 14 months to work effectively in periods of both uptrend and downtrend in the cryptocurrency market.
No evidence of external revenue being used to pay returns is provided.
Furthermore, being a passive investment opportunity means Bitles is offering a security.
The company provides no evidence it has registered with financial regulators in any jurisdiction. This means that, despite anything else, Bitles is operating illegally the world over.
Adding to securities fraud is the high probability that the majority of commissions paid out are tied to affiliate investor recruitment. This would additionally make Bitles a pyramid scheme.
As it stands the only verifiable source of revenue entering Bitles is new investment.
Using new investment to pay daily returns makes Bitles a Ponzi scheme.
Bitles will pay withdrawals via the internal exchange until new investment dries up or the anonymous admins want to pull a runner.
When that happens all they have to do is stop paying out, at which point Bitles will have collapsed.
The math behind Ponzi schemes guarantees that when they collapse, the majority of investors lose money.
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