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A recently established company called U-Farm is creating a stir in the online world with its novel business strategy. This U-Farm assessment tries to present a thorough examination of the business, looking at its ownership, product line, remuneration structure, and other factors.
The Mysterious Curtain Around U-Farm’s Ownership
It’s unsettling how anonymous U-Farm seems. The mystery surrounding the company is increased by the lack of information on its founders or executives on the company’s website. The domain name “co-ufarm.com” for U-Farm’s website was privately registered on February 20, 2023, further obscuring the names of those behind the group.
A smart investor should be wary of organizations that are secretive about their ownership or leadership. Any genuine firm must have transparency as a vital component.
Chinese language traces are found in the website source code of U-Farm, indicating potential Chinese origins or ties.
U-Farm’s Product Line: A Missing Piece in the Puzzle
Unusually, U-Farm doesn’t provide any goods or services that may be purchased in a store. The U-Farm affiliate program membership is the only thing up for grabs. This lack of physical products raises concerns about the company’s sustainability and business model.
U-Farm’s Compensation Structure: A Closer Look
The compensation plan of U-Farm is primarily based on the investment of the cryptocurrency Tether (USDT), with daily returns over 365 days. These are the investment plans:
- Potato: Invest 30 USDT and receive 0.75 USDT daily
- Wheat: Invest 100 USDT and receive 2.5 USDT daily
- Corn: Invest 300 USDT and receive 7.5 USDT daily
- Coffee: Invest 900 USDT and receive 23 USDT daily
Here’s a graphical representation of their commission structure:
U-Farm’s referral commissions on investments are structured in a unilevel pattern, rewarding affiliates up to three levels of recruitment:
- Level 1 (personally recruited affiliates): 5%
- Level 2: 3%
- Level 3: 1%
Additionally, U-Farm also offers a match on daily returns paid out to the unilevel team:
- Level 1: 3%
- Level 2: 2%
- Level 3: 1%
The Road to U-Farm Membership
U-Farm membership is free. The minimum investment needed to participate in the income opportunity is $30 USDT.
U-Farm: A Click-A-Button Ponzi Scheme?
The business idea of U-Farm is similar to the notorious “click-a-button” Ponzi scams. Farming is the company’s main ruse.
Affiliates are told to log in and push a button once per day in this fictitious farming system, which is supposed to be equivalent to harvesting seeds. The harvested yield is allegedly sold to fictitious buyers after which the stated ROI is produced.
This story, though, is very far from the truth. Seeds, harvesting, and actual sales don’t exist. An obvious sign of a Ponzi scam, U-Farm appears to be recycling new money to pay returns to earlier investors.
U-Farm and the Growing Trend of Click-A-Button Ponzi Schemes
U-Farm is not the only company with this dubious business strategy. Since the end of 2021, a number of “click-a-button” app Ponzi schemes have appeared, including Peace Ranch, The Ranch, and Nestle Ranch.
Sixty-eight similar programs have been recorded as of the time of this U-Farm study, the majority of which failed after a few months. These con artists frequently disappear without a trace, making their websites and apps unavailable and losing the majority of their investor’s money.
The Suspected Culprits Behind the Scene
The rise in “click-a-button” Ponzi schemes, such as U-Farm, is thought to have been the work of certain Chinese con artists. However, concrete evidence connecting these operations to a particular gang is still elusive.
U-Farm Review: The Verdict
It’s safe to say that U-Farm demonstrates a number of characteristics of a Ponzi scheme based on the results of our U-Farm investigation. Multiple red flags are raised by its lack of openness, lack of retailable products, and unsustainable remuneration plan.
Investor Warning: The MLM fraud known as “U-Farm” poses as a reliable investment opportunity. Please use caution and think about wise financial investments.
This U-Farm review should serve as a gentle reminder to always do your homework and use caution before investing in any business opportunity, particularly ones that guarantee quick and significant returns.
Keep in mind that if something seems too good to be true, it generally is.
Explainer on the dangers of Ponzi apps
Ponzi applications are those produced by businesses that operate Ponzi-style investment schemes, which guarantee big returns at low risk.
Ponzi apps may soon be the subject of regulatory action as the government considers cracking down on these fraudulent programs that promise improbable profits.
Ponzi applications are those produced by businesses that operate Ponzi-style investment schemes, which guarantee big returns at low risk. The apps employ new investor investments to provide returns on earlier investor investments. Charles Ponzi, the creator of the first such scheme, is credited with coining the word “Ponzi.” He came to light in the 1900s.
With the promise of greater rewards, one individual persuades another to join a chain-like Ponzi scam. They are advertised by word of mouth. They used to be operated physically, but thanks to the development of the digital ecosystem, there are now apps that serve the same function. Once new members stop joining, the scams eventually stop paying the returns promised and even return the sum invested.
The business plan
According to experts, the likelihood that a less risky investment can generate high returns is extremely low. The basis of the Ponzi app business model is deceiving investors into believing they will receive a larger return on their investment with no risk. The investors decide to spend their money in these schemes via these apps after being persuaded by this logic. To give an example, if someone invests Rs 100 in a scheme that promises returns of up to 20% yearly (simple interest) for a period of five years, they will receive Rs 20 per year for that five years.
Now that you have contributed Rs 100, the scheme operators will utilize that amount to pay interest to other investors while keeping their own incomes separate.
Only when existing investors become aware that the promoters have absconded with the money and new investors stop enrolling will they be discovered. Typically, this is the case.
People typically learn about these apps from their acquaintances who have participated in similar schemes. In addition, operators employ salespeople to persuade regular investors. These apps are promoted often on social media platforms as well as being listed in app stores.
These apps guarantee returns that are greater than those of the country’s legitimate investing choices.
Get Your Money Back Suspicious
Indicators of a Ponzi scheme
Before investing, investors should conduct a thorough analysis of the plan. Ponzi schemes advertise themselves as low-risk investments while providing large returns. Government licensing is lacking for the businesses running these apps or schemes.
Even in difficult economic times, they provide reliable returns. When no new members are introduced or when people start taking their money out, they will, however, drastically reduce the returns.