Ryan Conley, a figure previously associated with the $722 million BitClub Network Ponzi scheme, is promoting TAGArmyCoin, a new cryptocurrency project. This initiative links directly to the controversial TAG Protocol and its underlying TAGCoin. Conley, using the alias "Ryze" and identifying Nayana Oliveira as a co-founder, presents TAGArmy as a "gamified experience" designed to attract new investors.
The TAG Protocol itself purports to grant users digital "hashtag rights" tracked through non-fungible tokens, or NFTs. Holders of these hashtag NFTs are then said to receive TAGCoin when their owned hashtags are mentioned on social media platforms. The protocol generates TAGCoin on demand, seemingly without a defined cap or intrinsic value linked to a real-world asset or service. This mechanism has drawn scrutiny for its lack of tangible economic utility.
Since its launch in late November, TAG Protocol's associated TAGCoin has exhibited significant price volatility. The token saw an initial rapid surge followed by a sharp decline in mid-December. A subsequent price increase began around the same time, though market observers attribute such movements to speculative manipulation rather than organic growth or fundamental value. Analysts anticipate another significant price correction once current market forces dissipate.
Conley, acknowledging himself as a substantial holder of TAGCoin and a proponent of the TAG Protocol, introduced TAGArmy as a mechanism to capitalize on these existing assets. He announced the launch of #TAGARMYcoin shortly after the new year. The stated purpose of TAGArmy includes rewarding social media interactions with bounties, some reportedly exceeding $10,000, for recruiting influential figures, celebrities, and even government officials into the project.
TAGArmy's promotional materials also vaguely tie the scheme to #TAGsocial, the #UnitedNations, and a future #TAGmetaverse. It promises participants who "work up the ranks" opportunities to partake "at the highest levels" within this metaverse. A small fraction, one percent, of all proceeds is pledged for donation to the YMCA through the United Nations. The primary effect of TAGArmy, according to financial analysts, is to facilitate the transfer of existing TAGCoin holdings from early investors, like Conley, to new participants.
Conley has a documented history of involvement in cryptocurrency-based Ponzi schemes. The U.S. Department of Justice arrested the owners of BitClub Network in December 2019, confirming it operated as a $722 million Ponzi scheme from April 2014 to December 2019. Conley was among those who actively promoted BitClub Network, which defrauded thousands of investors. More recently, he was associated with TronCase, another alleged Ponzi scheme. Today, Conley continues to promote various Tag* schemes alongside others like Hyperverse.
The TAGArmy project incorporates a multi-level marketing (MLM) structure. Investors who recruit new participants directly receive a 10% commission on the funds invested by their Level 1 affiliates. An additional 10% commission is paid on investments made by Level 2 affiliates, who are recruited by an individual's direct recruits. To participate, individuals are typically required to invest a minimum of $3.
This structure allows Conley and other early promoters to generate revenue through recruitment and by offloading their existing TAGCoin holdings. As the underlying TAG Protocol and TAGCoin have demonstrated a pattern consistent with pump-and-dump schemes, TAGArmyCoin appears designed to attract new capital into a system where the value of the token is highly speculative and subject to rapid depreciation. The U.S. Securities and Exchange Commission has consistently warned investors about the risks associated with highly volatile and unregulated digital assets promoted through MLM structures.