You can help us put a stop to online scams before they grow too big and end up ruining thousands of lives. A scam is a scam, doesn’t matter if it’s big or small. Now that this is out of the way, let’s get started with the review.
On its website, Tradevest omits to list ownership or executive details. They started out using the privately owned “tradevest. cc” domain for its website on January 29th, 2023.
They changed to the domain “tradevest.biz” on or around June 30. The second domain for Tradevest’s website was privately registered on June 21.
We look at 34 different data points when analyzing and rating online money-earning opportunities. Once the research on these data points is submitted, expert contributors reach out to the company’s customers and associates to get more insight into their operation. Finally, all the collected information is presented in the form of this expert review.
All the data is extracted from publicly available information and the sources are given in the transparency section at the bottom of every report.
These reports are made possible by the collective efforts of contributors like you. If you would like to become a contributor then contact us here.
It’s unclear why they changed domain names. It’s important to observe the mention of “24stockoptionstrades.com” in the website source code for Tradevest:
It is believed that 24StockOptionsTrade also used the domain “24stockoptionstrade.com”. 24StockOptionsTrade was a Ponzi scheme that launched in late 2021.
In June 2022, the BC Securities Commission in Canada issued a 24StockOptionsTrade securities fraud warning. If it hadn’t collapsed already, 24StockOptionsTrade appears to have collapsed shortly thereafter.
The takeaway is same scammers behind 24StockOptionsTrade are likely also behind Tradevest Review.
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.
Tradevest Products: What They Have to Offer
They don’t offer any goods or services for retail sales.
Only their associate membership itself may be marketed by affiliates.
Compensation Pan
Affiliates of the company make cryptocurrency investments in USD equivalents. On the promise of advertised returns, this is done:
- Trade1 offers 1% interest daily for 30 days on investments of $300 or more.
- With Ultra Trade, you can earn 1.5% every day for 50 days if you invest at least $5000.
- Tradevest’s MLM division offers commissions on affiliate recruitment.
Advisory Commissions
On bitcoin investments made by affiliates who were individually recruited by the company, a 5% referral commission is paid.
Recurring Commissions
The residual commission portion of Tradevest’s compensation structure is concealed.
The only information offered is as follows:
At every level of this program, company marketers and team leaders receive specific commissions and incentives based on the volume and investment of their teams.
Please get in touch with our support to request the Affiliate Compensation Agreement and take advantage of our great offer.
Joining Tradevest
It costs nothing to become a Tradevest affiliate member.
The connected income opportunity requires a minimum commitment of $300 to be fully engaged.
Investment in various cryptocurrencies is sought after by Tradevest.
Summary
The corporation withholding information about its investment plan and MLM potential on its website is your first big red flag with Tradevest.
Tradevest asserts that the company earns money from outside sources via a variety of shady tricks:
We deal in stocks, bonds, capital investments, commodities, and digital assets (such as cryptocurrency and tokenized real estate). We also handle wealth management.
No evidence of Tradevest generating withdrawal revenue via these ruses is provided. This is a second red flag.
On the regulatory front, Tradevest’s passive returns investment opportunity constitutes a securities offering.
Tradevest fails to provide evidence it has registered with financial regulators. This means that at a minimum, Tradevest is committing securities fraud.
Despite operating illegally, Travest laughably claims it to be “backed by a government”.
We’re the only Proof-of-stake infrastructure provider to be backed by a Government.
Currently, new investment is the sole provable source of income entering Tradevest.
Tradevest would become a Ponzi scheme if new investments were used to pay affiliate withdrawals.
Like other MLM Ponzi schemes, ROI revenue will stop growing as soon as affiliate recruiting ends.
Due to a lack of ROI income, Tradevest will eventually collapse.
The mathematics underlying Ponzi schemes ensures that when they fail, the majority of investors lose money.
What are Ponzi schemes?
A Ponzi scheme is a fraudulent investment scheme that promises high returns without investing in legitimate ventures. The operator pays returns to earlier investors using the capital from newer investors, creating an illusion of profitability. Ponzi schemes collapse when the operator can’t attract enough new investments or when many investors try to cash out, resulting in huge losses. Investors should exercise caution and conduct thorough due diligence when considering investment opportunities to avoid falling victim to such schemes.
Reference- Tradevest Review: Finance-themed MLM crypto Ponzi (behindmlm.com)
What is a Ponzi Scheme? (The crime committed by Tradevest)
A Ponzi scheme is a fraudulent investment scheme that entices investors with high rates of return and little risk. A Ponzi scheme is a fraudulent investment operation in which money is collected from later participants to pay returns to earlier investors. This is comparable to a pyramid scam in that both rely on new investors’ money being used to reimburse the previous funders.
When the influx of new investors stops and there isn’t enough money to go around, both Ponzi schemes and pyramid schemes finally hit their bottom. The plans then start to fall apart.
- The Ponzi scam brings in new investors by promising them a substantial payoff with little to no risk, which creates returns for previous investors.
- The fraudulent investment scheme’s basic idea is to reimburse the initial backers with money from future investors.
- Companies that run Ponzi schemes concentrate all of their efforts on finding new investors because, without them, the scheme will run out of money.
- The SEC has provided advice on potential Ponzi scheme red flags, such as guarantees of returns or unregistered investment vehicles with the SEC.
- Bernie Madoff perpetrated the largest Ponzi scam, defrauding thousands of investors of billions of dollars.
The SEC has identified a few traits that often signify a fraudulent financial scheme. It is important to understand that almost all types of investing incur some level of risk, and many forms do not carry with them guaranteed profits. If an investment opportunity (1) guarantees a specific return, (2) guarantees that return by a certain time, and (3) is not registered with the SEC, the SEC advises to invest with caution as these as identifiers of fraud.
Get Your Money Back Suspicious
Red Flags to be considered in case of a Ponzi Scheme like Tradevest
Regardless of the technology used in the Ponzi scheme, most share similar characteristics. The Securities and Exchange Commission (SEC) has identified the following traits to watch for:
- A guaranteed promise of high returns with little risk
- A consistent flow of returns regardless of market conditions
- Investments that have not been registered with the Securities and Exchange Commission (SEC)
- Investment strategies that are secret or described as too complex to explain
- Clients are not allowed to view official paperwork for their investment
- Clients facing difficulties removing their money
Bottom Line
Customers anticipate some sort of fiduciary duty when they give money to their financial advisors or investing companies. Unfortunately, Ponzi schemes like Tradevest can be used to fraudulently mismanage those funds. Ponzi schemes aren’t real investment plans because they use the money from one investor to pay another. They are dishonest investment schemes that cost billions of dollars in losses.
