The international website Behind MLM, which specializes in detailing and reporting ponzi schemes, published about how Midas Trend works.
To begin with, the site already links the suspicion alert as the official Midas Trend website does not provide information about who owns the company or who are responsible.
"If a Multilevel Marketing company is not openly candid about who manages it or owns it, think a lot about joining and / or handing over any money," says the analysis.
Although hidden on the website, Midas CEO Deivanir Santos used to live on his Instagram about company events.
How it worked
According to the website, MidasTrend does not have products or services available. The only form of revenue was the marketing of Midas Trend's affiliation. Investors invested reais with the promise of guaranteed return.
According to the website, the robot they advertised worked with the following returns:
- Robot 1 – invest R $ 130 and receive R $ 380
- Robot 2 – invest R $ 380 and receive R $ 800
- Robot 3 – invest R $ 800 and receive R $ 1300
- Robot 4 – invest R $ 1300 and receive R $ 3000
- Robot 5 – invest R $ 3000 and receive R $ 8000
- Robot 6 – invest R $ 8,000 and receive R $ 80,000
MidasTrend did not provide a timeline for completing the return.
In addition, Midas Trend offered residual and binary bonuses.
A binary pay structure puts an affiliate on top of a binary team, divided into two sides (left and right):
The first level of the binary team houses two positions. The second level of the binary team is generated by dividing these first two positions into two other positions each (4 positions).
Subsequent levels of the binary team are generated as needed, with each new level housing twice as many positions as the previous level.
Binary team positions are filled through direct and indirect affiliate recruitment. There is no limit to the depth of a binary team.
Affiliates received 10% of funds invested in the weaker side of the binary team at the end of each day.
Once paid, the funds are combined with the stronger side and released. The remaining volume on the strongest side of the binary team is transferred.
Residual commissions (5 × 6 matrix)
The other form of gain, residual commissions, is similar to binary. A 5 × 6 array places an MidasTrend affiliate on top of an array, with five positions directly below them:
Note the similarity of the images to clear financial pyramid schemes.
These five positions form the first level of the matrix. The second level of the matrix is generated by dividing these five positions into five other positions each (25 positions).
Levels three to six of the matrix are generated in the same way, with each new level housing five times more positions than the previous level.
Headquarters positions were filled by recruiting MidasTrend affiliates.
Each MidasTrend affiliate had to pay a monthly fee of R $ 24.90. MidasTrend charges this fee and uses it to pay commissions on matrix positions filled as follows:
- R $ 0.50 per position filled in level 1 (5 positions)
- R $ 1 per position filled in level 2 (25 positions)
- R $ 1.50 per position filled at level 3 (125 positions)
- R $ 2 per position filled at level 4 (625 positions)
- R $ 2 per position filled at level 5 (3125 positions)
- R $ 3 per position filled at level 6 (15,625 positions)
Residual commissions at the parent company were paid monthly, while affiliates at the parent company continued to pay their monthly fee of R $ 24.90.
Finally, the website concludes that there is no evidence that the Midas Trend trading robot actually worked and that there is also no evidence that MidasTrend uses BotMidas revenue or any other external source of revenue to pay affiliates.
"The math behind the Ponzi schemes ensures that when they collapse, most investors lose money," concludes the website.