Paraiba offers no data on its web site about who owns or runs the corporate.
Paraiba’s web site area (“paraiba.world”) was privately registered on September sixteenth, 2019.
In an try to look reputable, Paraiba offers an incomplete company tackle within the Comoro Islands.
The Comoro Islands are a sequence of small islands off the south-east coast of Africa.
For sure Paraiba has no bodily enterprise operations there.
Paraiba advertising materials cites Erich Ely as CEO of the corporate.
Ely (proper) is supposedly from Germany. Probably because of language-barriers, I used to be unable to place collectively an MLM historical past.
Replace seventh September 2020 – BehindMLM reader PassingBy has uncovered that previous to founding Paraiba, Erich Ely was a German promoter of the OneCoin Ponzi scheme.
PassingBy additionally uncovered Paraiba obtained a securities fraud discover from BaFin in June. /finish replace
On the time of publication Paraiba seems to be primarily marketed in Honduras. Alexa cites Honduras as the one notable supply of site visitors to Paraiba’s web site (43%).
As at all times, if an MLM firm isn’t overtly upfront about who’s working or owns it, assume lengthy and exhausting about becoming a member of and/or handing over any cash.
Paraiba’s Merchandise
Paraiba has no retailable services or products, with associates solely in a position to market Paraiba affiliate membership itself.
Paraiba’s Compensation Plan
Paraiba associates make investments $25 or extra on the promise of an marketed day by day return.
- make investments as much as $49,999 and obtain 0.3% a day
- make investments $50,000 or extra and obtain 0.5% a day
Return are paid for 100 days, after which the initially invested quantity can also be returned (complete ROI: 130%/150%).
Word that to qualify for commissions, a Paraiba affiliate will need to have an lively funding of $100 or extra.
Recruitment Commissions
Paraiba associates earn commissions on funds invested by personally recruited associates.
Recruitment fee fee are calculated primarily based on the variety of personally recruited associates:
- recruit 1 to 4 associates and obtain a 0.05% recruitment fee fee
- recruit 5 to 9 associates and obtain a 0.1% recruitment fee fee
- recruit 10 to 19 associates and obtain a 0.2% recruitment fee fee
- recruit 20 or extra associates and obtain a 0.3% recruitment fee fee
Word that with a purpose to depend in direction of recruitment fee qualification, personally recruited associates should make investments a minimum of $100.
Residual Commissions
Paraiba pays residual commissions by way of a unilevel compensation construction.
A unilevel compensation construction locations an affiliate on the prime of a unilevel group, with each personally recruited affiliate positioned immediately underneath them (degree 1):
If any degree 1 associates recruit new associates, they’re positioned on degree 2 of the unique affiliate’s unilevel group.
If any degree 2 associates recruit new associates, they’re positioned on degree 3 and so forth and so forth down a theoretical infinite variety of ranges.
There doesn’t look like any unilevel group degree restrictions, with residual commissions paid on the complete unilevel group.
Residual fee charges are calculated primarily based on the next qualification standards:
- make investments $1000 and recruit 1 to 4 associates who additionally make investments $1000 or extra every = 0.01% residual fee fee
- keep a $1000 funding and recruit 5 to 9 associates who’ve additionally invested $1000 or extra every = 0.02% residual fee fee
- keep a $1000 funding and recruit 10 to 19 associates who’ve additionally invested $1000 or extra every = 0.03% residual fee fee
- keep a $1000 funding and recruit 20 or extra associates who’ve additionally invested $1000 or extra every = 0.04% residual fee fee
Rank Achievement Bonus
There are six affiliate ranks inside Paraiba’s compensation plan.
Together with their respective qualification standards, they’re as follows:
- Yellow – personally make investments $1000, recruit a minimum of one affiliate and generate $1000 or extra in personally recruited affiliate funding quantity
- Blue – personally make investments $5000, recruit two to 4 associates (two have to be Yellow) and generate $2000 or extra in personally recruited affiliate funding quantity
- Inexperienced – personally make investments $10,000, recruit 5 to 9 associates (one have to be Blue) and generate $5000 or extra in personally recruited affiliate funding quantity
- Purple – personally make investments $15,000, recruit ten to nineteen associates (two have to be Inexperienced) and generate $10,000 or extra in personally recruited affiliate funding quantity
- Purple – personally make investments $20,000, recruit 20 or extra associates (three have to be Purple) and generate $20,000 or extra in personally recruited affiliate funding quantity
- Paraiba – personally make investments $50,000, keep 20 personally recruited associates (5 have to be Purple) and keep $20,000 or extra in personally recruited affiliate funding quantity
Rank Achievement Bonuses paid out upon qualifying for the above ranks are as follows:
- qualify at Yellow and obtain $10
- qualify at Blue and obtain $100
- qualify at Inexperienced and obtain $1000
- qualify at Purple and obtain $5000
- qualify at Purple and obtain $15,000
- qualify at Paraiba and obtain $25,000
Word that these are one-time bonuses.
Pool Share
Paraiba takes 0.35% of company-wide invested funds and locations them into seven bonus swimming pools.
Every pool is break up 0.05% and paid out day by day as per the next qualification standards:
- Pool 1 – personally make investments $1000, recruit a minimum of one affiliate and generate $1000 in complete personally recruited affiliate funding
- Pool 2 – personally make investments $5000, recruit a minimum of three associates and generate $5000 in complete personally recruited affiliate funding
- Pool 3 – keep a $5000 private funding, recruit a minimum of 5 associates and generate $15,000 in complete personally recruited affiliate funding
- Pool 4 – personally make investments $10,000, recruit a minimum of ten associates and generate $35,000 in complete personally recruited affiliate funding
- Pool 5 – personally make investments $15,000, recruit a minimum of fifteen associates and generate $95,000 in complete personally recruited affiliate funding
- Pool 6 – personally make investments $20,000, recruit a minimum of twenty associates and generate $180,000 in complete personally recruited affiliate funding
- Pool 7 – personally make investments $50,000, keep a minimum of twenty personally recruited associates and generate $500,000 in complete personally recruited affiliate funding
Becoming a member of Paraiba
Paraiba affiliate membership is free.
To qualify for commissions nonetheless, a minimal $100 lively funding is required.
Paraiba funding phrases expire each 100 days. Reinvestment is required to proceed incomes.
Conclusion
Paraiba markets itself as a “distinctive personal financial institution”. Past a shell incorporation for “Distinctive Personal Financial institution” in Moheli (one of many Comoro Islands), that’s meaningless drivel.
I’m not even going to get into the monetary regulatory ramifications of pretending to be a financial institution, as a result of beneath the advertising pitch Paraiba is your typical MLM crypto Ponzi scheme.
Paraiba represents it generates return income by way of cryptocurrency buying and selling.
No proof of buying and selling is offered. Neither is there any proof Paraiba makes use of exterior income of any variety to pay marketed returns.
Moreover by providing passive returns, Paraiba is providing a safety.
Securities in Honduras are regulated by the Central Financial institution of Honduras. Paraiba offers no proof it has registered its securities providing with the Central Financial institution of Honduras, or any monetary regulator for that matter.
Which means that, at a minimal, Paraiba is committing securities fraud and working illegally. Add banking fraud to that, and we’re nonetheless not achieved.
Because it stands the one verifiable income coming into Paraiba is new funding.
Utilizing new funding to pay associates a day by day return makes Paraiba a Ponzi scheme.
As with all MLM Ponzi schemes, as soon as affiliate recruitment dries up so too will new invesmtent.
This can starve Paraiba of ROI income, finally prompting a collapse.
The maths behind Ponzi schemes ensures that once they collapse, the vast majority of individuals lose cash.