Paul Nash, owner of the revenue-sharing platform Spinding, recently admitted his hope that the company is not operating as a Ponzi scheme. This admission came in an email exchange with Ken Russo, an affiliate promoting Spinding as a "passive revenue share with immense potential." Russo had directly asked Nash how passive members could benefit from Spinding.
Nash's reply offered little reassurance. "Not sure that a totally passive system exists that will pass the legalities and scrutiny of the attorneys," he wrote. He added, "I am hoping that we have a small percentage of 'active' members who actually try to build this thing." This statement suggests Spinding relies on recruitment, not a sustainable business model.
Spinding launched into prelaunch around January, when Russo sent his questions. The platform's setup seems simple: affiliates invest between $30 and $960 into one of five separate queues. They earn a return of $1 to $63 once four other people invest after them. The position then theoretically cycles to the back of the queue, potentially generating daily returns up to ten times the initial amount.
A significant condition applies. To qualify for returns on each queue, affiliates must bring in two additional positions per queue. They can achieve this by recruiting new members or by purchasing the positions themselves.
This is where Nash's hope becomes critical. He told Russo that some investors plan to "buy three positions and call it a day. The first qualified by the other two." These individuals would buy their initial position, then self-fund two more underneath it to activate returns on the first. Returns from the first position would then supposedly fund additional positions, creating a pyramid of self-directed investments.
Nash presented this as a solution for people who "don't want to actively recruit anymore." In practice, he described a system where returns depend entirely on new money entering the structure. If recruitment slows, or if people stop buying new positions—whether through downlines or self-funding—the entire operation collapses.
This structure aligns with the definition of a Ponzi scheme. Early investors receive payments from the capital provided by later investors, creating the illusion of profit from a legitimate business. The moment the flow of new money stops, all payments cease.
Nash's open acknowledgment of needing "active" members who recruit stands out from the typical multi-level marketing script. But it also serves as an accidental confession. He is essentially stating the company cannot survive on its own merits. It requires constant recruitment to function, and he hopes, rather than knows, this will remain legal. For those considering an investment in Spinding, this hope from its founder is a direct warning.