Velocity Token provide no information on their website about who owns or runs the business.
The Velocity Token website domain (“velocitytoken.io”) was privately registered on December 21st, 2017.
As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.
Velocity Token Products
Velocity Token has no retailable products or services, with affiliates only able to market Velocity Token affiliate membership itself.
The Velocity Token Compensation Plan
Velocity Token affiliates purchase VTN points from the company’s anonymous owners.
VTN points are sold to Velocity Token affiliates for 50 cents to $1.50 each.
Once acquired, VTN points are “lent” back to Velocity Token on the promise of an advertised ROI.
invest $100 to $1000 and receive a variable daily ROI plus 0.1% bonus daily ROI for 200 days
invest $1010 to $5000 and receive a variable daily ROI plus 0.2% bonus daily ROI for 150 days
invest $5010 to $10,000 and receive a variable daily ROI plus 0.25% bonus daily ROI for 100 days
invest $10,010 to $50,000 and receive a variable daily ROI plus 0.3% bonus daily ROI for 60 days
Referral commissions on funds invested by downline affiliates are paid down three levels of recruitment (unilevel):
level 1 (personally recruited affiliates) – 5%
level 2 – 3%
level 3 – 1%
Joining Velocity Token
Velocity Token affiliate membership is free, however free affiliates can only earn referral commissions.
Full participation in the Velocity Token MLM opportunity requires a minimum $100 investment.
Conclusion
Velocity Token claim to generate external ROI revenue through “trading bots”.
Our AI bot is able te [sic] recognise Pump and Dumps and will use this to gain profit from.
No evidence of this bot or any external revenue being used to pay affiliates is provided.
The claim Velocity Token profits from “pump and dump” altcoins is somewhat amusing, seeing as that’s pretty much what Velocity Token is.
VTN is yet another altcoin launched for the sake of launching an altcoin. Outside of the attached lending scheme VTN are worthless, which is important because Velocity Token’s lending operates as a Ponzi scheme.
With no external funds the only verifiable source of revenue entering Velocity Token is newly invested funds.
Using newly invested funds to pay existing affiliates a daily ROI makes Velocity Token a Ponzi scheme.
Lending ICO Ponzis like Velocity Token play out as follows:
Admins (who are typically anonymous) offload worthless pre-generated points in exchange for real money. In this case it’s VTN points.
The admins then use some of this money to pay promised ROIs for as long as new affiliates sign up.
Once affiliate recruitment dries up so does the ROI reserve.
When a predetermined threshold is reached, the anonymous Velocity Token admins pull a runner with what’s left.
Early Velocity Token investors make a bit of money (mostly via recruitment of new investors). But same as any other Ponzi scheme, the reality of such scams is that the majority of participants eventually lose money.
🤖 Quick Answer
What is Velocity Token and its primary business model?Velocity Token is a platform where affiliates purchase VTN points priced between 50 cents and $1.50 each, which are subsequently "lent" back to the company with promised returns. The business operates without retailable products or services, focusing solely on marketing affiliate memberships themselves, raising concerns about pyramid scheme characteristics.
Why is the lack of transparency concerning for Velocity Token investors?
Velocity Token's website provides no information about company ownership or management. The domain was privately registered in December 2017, obscuring operator identity. Financial experts advise caution when MLM companies lack transparency regarding ownership and operational control, as this opacity often accompanies fraudulent schemes.
What structural problems exist in Velocity Token's compensation plan?
Velocity Token affiliates generate income exclusively through recruiting and marketing VTN points rather than selling legitimate products or services to external
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