Arbitrage trading bot Ponzi scheme


Desires Digger operates within the cryptocurrency MLM area of interest and relies out of Salvador, Brazil.

Heading up Desires Digger is CEO Leonardo Araujo.

I did discover proof of a Leonardo Araujo concerned in community advertising and marketing courting again to 2015, however I used to be unable to confirm if it was Desires Digger’s Araujo.

Consequently, and presumably as a result of language obstacles, I used to be unable to trace Leonardo Araujo’s MLM historical past.

For his or her half Desires Digger fails to supply any details about Araujo on their web site.

As all the time, if an MLM firm will not be brazenly upfront about who’s operating or owns it, suppose lengthy and exhausting about becoming a member of and/or handing over any cash.

Desires Digger’s Merchandise

Desires Digger markets entry to a buying and selling bot they name “Subsequent”.

Retail clients pay $10 a yearly to entry the Subsequent bot. They then make investments funds into it on the expectation of a return.

Each Desires Digger retail clients and associates are given entry to an in-house training platform.

Desires Digger states the platform will allow customers to ‘acquire perception into the unbelievable cryptocurrency market (and) change into an skilled within the area‘.

Desires Digger’s Compensation Plan

Desires Digger associates earn commissions by producing funding into the Subsequent bot.

Commissions are additionally paid on the recruitment of recent Desires Digger associates.

Desires Digger’s Affiliate Ranks

There are ten affiliate ranks inside Desires Digger’s compensation plan.

Together with their respective qualification standards, they’re as follows:

  • Affiliate – enroll both a Professional or Enterprise Pack
  • Accomplice – recruit two associates and begin incomes residual commissions
  • Sapphire – generate an accrued 100 GV in your weaker binary staff aspect
  • Ruby – generate an accrued 500 GV in your weaker binary staff aspect
  • Emerald – generate an accrued 1000 GV in your weaker binary staff aspect
  • Diamond – generate an accrued 5000 GV in your weaker binary staff aspect
  • Blue Diamond – generate an accrued 20,000 GV in your weaker binary staff aspect
  • Purple Diamond – generate an accrued 70,000 GV in your weaker binary staff aspect
  • Black Diamond – generate an accrued 250,000 GV in your weaker binary staff aspect
  • President – generate an accrued 1,000,000 GV in your weaker binary staff aspect

GV stands for Group Quantity and is gross sales quantity generated by affiliate recruitment and Subsequent bot funding.

Retail Commissions

Desires Digger associates are paid 10% of funds invested into the Subsequent bot by retail clients.

Recruitment Commissions

Desires Digger associates are paid 10% of membership charges paid by personally recruited associates.

They’re additionally paid 10% of funds personally recruited associates make investments into Subsequent.

Residual Commissions

Desires Digger pays residual commissions by way of a binary compensation construction.

A binary compensation construction locations an affiliate on the high of a binary staff, cut up into two sides (left and proper):

The primary stage of the binary staff homes two positions. The second stage of the binary staff is generated by splitting these first two positions into one other two positions every (4 positions).

Subsequent ranges of the binary staff are generated as required, with every new stage housing twice as many positions because the earlier stage.

Positions within the binary staff are crammed by way of direct and oblique recruitment of associates. Notice there is no such thing as a restrict to how deep a binary staff can develop.

Gross sales quantity (GV) is generated throughout the binary staff as follows:

  • direct or oblique recruitment of a Professional Pack affiliate = 30 GV
  • direct or oblique recruitment of an Enterprise Pack affiliate = 50 GV
  • each $50 invested into the Subsequent bot = 8 GV

On the finish of every day Desires Digger tallies up new GV generated on either side of the binary staff.

Professional Pack tier associates are paid 50% of tallied up GV. Enterprise Pack tier associates are paid 60%.

As soon as GV has been paid out on, it’s matched with the stronger binary staff aspect and flushed.

Any leftover quantity on the stronger binary staff aspect is carried over into the next day.

Notice that Desires Digger caps residual binary commissions at $5000 a day for all associates.

Matching Bonus

Desires Digger pays a Matching Bonus on residual commissions earned by downline associates.

The Matching Bonus is paid out by way of a unilevel compensation construction.

A unilevel compensation construction locations an affiliate on the high of a unilevel staff, with each personally recruited affiliate positioned immediately beneath them (stage 1):

If any stage 1 associates recruit new associates, they’re positioned on stage 2 of the unique affiliate’s unilevel staff.

If any stage 2 associates recruit new associates, they’re positioned on stage 3 and so forth and so forth down a theoretical infinite variety of ranges.

Desires Digger caps the Matching Bonus at three ranges of recruitment:

  • stage 1 (personally recruited associates – 10% match
  • stage 2 – 7% match
  • stage 3 – 3% match

Management Bonus

Desires Digger associates obtain 25% of GV generated by affiliate membership charges, paid by associates down six ranges of their unilevel staff.

Rank Achievement Bonus

Desires Digger rewards associates for qualifying Emerald and better with the next rewards:

  • qualify as an Emerald and obtain an “government watch”
  • qualify as a Diamond and obtain a “cruise for 2”
  • qualify as a Blue Diamond and obtain a Caribbean journey for 2
  • qualify as a Purple Diamond and obtain a Hyundai HB20 automobile
  • qualify as a Black Diamond and obtain an “government automobile”
  • qualify as a President and obtain a “dream automobile”

Becoming a member of Desires Digger

Desires Digger affiliate membership begins at $149 yearly.

  • Professional Pack – $149 yearly
  • Enterprise Pack – $249 yearly

The first distinction between the 2 affiliate packs is revenue potential by way of Desires Digger’s compensation plan.

Conclusion

Desires Digger claims its Subsequent bot participates in arbitrage.

Subsequent is DD Company arbitration robotic.

It carries out automated operations in several exchanges all over the world, shopping for in those who have a less expensive quote and promoting on those who pay extra.

But there is no such thing as a proof of arbitrage happening. That leaves new funding as the only verifiable income coming into Desires Digger.

Utilizing newly invested funds to pay present retail clients and associates supposed bot returns, would make Desires Digger a Ponzi scheme.

Supporting the truth that Desires Digger is working illegally is the actual fact the corporate offers no proof it has registered with the Brazilian SEC.

Fairly clearly Desires Digger’s passive funding alternative constitutes a securities providing.

Securities in Brazil are registered by the Brazilian SEC. With the intention to function legally Desires Digger should register its passive funding alternative.

In doing so, the corporate is legally required to supply the SEC, public and buyers with due diligence data concerning their claimed buying and selling bot.

The one motive Desires Digger would decide to commit securities fraud is that if

  1. there is no such thing as a bot (100% Ponzi); or
  2. there’s a bot however any exterior income it generates is negligible (majority Ponzi).

Both method Desires Digger can be working a Ponzi scheme.

And Brazilian authorities seem to have cottoned on too. In keeping with web page 27 of this doc from Brazil’s Common Legal professional’s Workplace, Desires Digger (identified regionally as DG Cursos de Dealer LTDA), is beneath civil investigation for fraud.

That announcement was made on Might thirty first. There’s been no updates since so far as I can see.

In any occasion as with all MLM Ponzi schemes, as soon as investor referral dies down so too will new funding.

It will see Desires Digger starved of ROI income, finally prompting a collapse.

The maths behind Ponzi schemes ensures that after they collapse, the vast majority of members lose cash.

 

Replace fifth March 2020 – Desires Digger, working as DD Company, stopped paying buyers in December 2019.

Proprietor Leonardo Araujo confirmed the Ponzi scheme had collapsed earlier this week.