What Is ETHPlus? It’s a Cryptocurrency Smart Contract MLM Scam!

ETHPlus is a MLM or multi-level marketing company that operates in the cryptocurrency niche. The company is only a few months old, according to their domain name registration.

Unlike most of the suspicious programs that we reviewed, this one actually has names tied to it. Fernando Urdaneta and Jonathan Valle are two individuals associated with the company.

Urdaneta is listed as the Head of SEO while Valle is the Commercial Director. However, our research shows that Urdaneta is actually the CEO, as he claims in one of the company’s marketing videos on YouTube.

We don’t know why he chooses to have a smaller role presented in public, but we’re pretty sure that it’s for nefarious reasons.

The domain name was registered on April 2020 under the company OmegaSquad. The address listed is Santo Domingo, Dominican Republic.

It would make sense given that Urdaneta lives in Santo Domingo as of this writing.

ETHPlus Product Line

There are no retail products or services to avail from ETHPlus.

The only thing they offer is “membership” into their income opportunity, which is a huge red flag.

Does The Product Work?

ETHPlus works like smart contract Ponzi scheme. The contract is nothing more than a matrix-based Ponzi scheme, by which ETHPlus members use to take money from their recruits.

So, the way it works is that your members are placed under you, and their members are placed under them. You make money from these various levels, and you’ll be goaded into thinking that you’re getting your investment back.

In reality, you’re just leeching off of people from their membership fees. And the people who recruited you are doing the same thing.

There’s no proof here that the company is doing anything to generate income other than to recruit members.

There’s no proof that investments and trades are being done to generate some form of passive income.

They don’t have the authorization to carry out these financial activities as well, so if they did do this, they’re liable for some jail time.

You could also land some jail time when you promote this program.

There’s only one way to make money from ETHPlus and that’s through recruitment.

How To Get Started with ETHPlus?

There’s a recurring monthly membership cost of 0.05 ETH every 90 days.

If you want to be a part of the compensation plan, it will cost you a recurring fee of 55.22 ETH, which is about $20,000 give or take.

Recruitment Commissions

You earn a commission of 0.012 ETH from your recruits when they sign up for the 0.05 ETH recurring cost.

Matrix Investment

Their investment opportunity follows a 2x17 matrix where members are placed on a position under you.

You earn different amounts of ETH for each level.

Investment Referral Commissions

You get a referral commission when members sign up for a matrix level position, and as follows:

• recruit a member who invests in a level 1 to 9 position and receive 0.04 ETH
• recruit a member who invests in a level 10 position and receive 0.09 ETH
• recruit a member who invests in a level 11 position and receive 0.15 ETH
• recruit a member who invests in a level 12 position and receive 0.24 ETH
• recruit a member who invests in a level 13 position and receive 0.34 ETH
• recruit a member who invests in a level 14 position and receive 0.42 ETH
• recruit a member who invests in a level 15 position and receive 0.51 ETH
• recruit a member who invests in a level 16 position and receive 0.7 ETH
• recruit a member who invests in a level 17 position and receive 1.26 ETH

#1 Obvious Ponzi Scheme

From the way their compensation plan works, it’s obvious that the company is nothing more than a Ponzi scheme.

This itself is the biggest red flag of them all.

If you don’t believe us, go look up the FTC guidelines for MLM companies and they’ll say that MLM companies should have retail products or services to offer.

Another guideline mentioned is that MLM companies should not incentivize recruitment more than retail sales.

Both of these guidelines are violated by ETHPlus.

#2 Securities Fraud Incoming

Speaking about violating FTC guidelines, they also violate SEC guidelines since they promise investment profits.

You may be registered with SEC for the business name, but you’ll need a different authorization to carry out investments and trades on behalf of other people.

And the company needs to work with registered traders and brokers too.

Guess what ETHPlus has?

None of these.

There’s nothing to like about ETHPlus at this point. It’s just too obvious that there’s something wrong with the company.

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In fact, with affiliate marketing...