Thomas Koller, CEO of Atronocom, announced the company's planned registration in Dubai's DMCC Free Zone by January 2019, positioning it as a distributed ledger and software provider. This initial claim placed the company squarely within the multi-level marketing (MLM) cryptocurrency sector.
Koller identifies himself as a "trader" in Atronocom press releases. His digital presence outside of the company remains minimal, a detail often seen with operators of speculative investment schemes. No public record details any prior experience in multi-level marketing.
The Atronocom website states its formation as a limited liability company within Dubai's DMCC Free Zone. It claimed ongoing discussions with Abu Dhabi Global Market for financial engineering components. Both Dubai and Abu Dhabi are jurisdictions known for their lenient regulatory oversight concerning multi-level marketing and cryptocurrency operations, making them attractive to such ventures.
But the company's reliance on euro-denominated investments suggests its operational base lies in Europe. This was later corroborated by an Atronocom Twitter profile update on March 20, 2019, which listed Zug, Switzerland, as the company's purported headquarters. The shift in stated locations, coupled with the Euro usage, indicates that any UAE incorporations likely serve as shell entities.
Atronocom offers no retail products or services to external customers. Its business model relies solely on the sale of affiliate memberships, which grant access to investment in Atronocom Coins. This structure bypasses traditional consumer protection laws, as no tangible value is exchanged beyond the promise of future returns.
Affiliates join by investing directly into Atronocom Coins. The company structured coin sales in distinct tiers, progressively increasing the price per coin. The initial 25 million Atronocom Coins sold for 0.15 EUR each. Subsequent batches of 50 million coins were priced at 0.30 EUR, then 0.40 EUR, followed by another 50 million at 0.50 EUR, and a final 50 million at 0.65 EUR per coin. This escalating price model incentivizes early investment.
Commissions are generated when existing affiliates recruit new members who also invest in Atronocom Coins. The compensation plan uses a unilevel structure. An affiliate sits at the top of their personal unilevel team. Anyone they personally recruit forms their first level.
If a first-level affiliate recruits others, those new members appear on the original affiliate's second level. This pattern extends, with new recruits filling subsequent levels as the team expands. Atronocom caps referral commissions at five specific unilevel team levels.
The payout percentages are tiered. Level 1, consisting of personally recruited affiliates, earns the upline a 10% commission. Level 2 generates a 3% commission. Level 3 pays 5%, Level 4 pays 2%, and Level 5 provides a 1% commission on investments made by those downline members.
The absence of external revenue sources means all commissions and potential coin value increases are funded by new affiliate investments. This model, where returns for early investors are paid by the capital of later investors, is a hallmark of a Ponzi scheme. Such operations inevitably collapse when recruitment slows or new investment ceases, leaving most later-stage investors with significant losses.
Potential victims of cryptocurrency investment schemes can consult the Financial Crimes Enforcement Network (FinCEN) website for guidance on reporting suspected fraud.
