After NRGY and other shelved projects, BuilderDefi boots in the wake of complaints and alleged profiling by SEC authorities.
If you are familiar with most high-yield schemes, you can spot the same trend in BuilderDefi, which supposedly provides a stable financial landscape. Obviously, it is the usual altruism rhetoric all over.
What do you have to do to make a profit?
The official website only cedes patches of the Mission Description. However, the goal seems to be equity and fair play for every participant. High ROI posturing will not earn traction for any brand unless it has emotional appeal. So, that’s the first shot at closure: get prospects to empathize with the offing deal.
BuilderDefi employs the above method on its website. The question is, if it were anything worthwhile or the typical MLM tensor flex before hitting the we’re hacked button.
Who is the Owner of the Company?
Here is where the haze starts. Instead of stating the name of the CEO head-on, the platform compounds vagueness into the picture. Currently, only two people seem to recur publicly as the CEO (s).
The one is Alan Friedman, a popular MLM front, while the other is Sal Alicio. Sal is too shroud in Alan’s methods to qualify as the game-changer. As it happens, he mentions that Alan is the architect.
What do we make of this information? Of course, it’s the same old proxy script, although it doesn’t end there.
Learn more about BuilderDefi in this article.
Table of Contents
BuilderDefi Overview: The Business Roadmap
The company is only a recent player in the scape of crypto investments and whatnot. However, enclosed website tags that link to NRGY as a redirect confirm the former as a previous iteration.
Hence, the roadmap gets intriguing, with NRGY allegedly settling backlogs with the CFTC about fraud activities. The company would feign at lodging a complaint against the CFTC but eventually opts for an extrajudicial settlement.
Regardless, the Journey doesn’t stop there for CEO Alan Friedman. Instead of stripping off the Ponzi fixtures, he merely picks a different branding and continues the same old enterprise. NRGYGO is one of these last gasps until the final plunge with BuilderDefi.
Why would anyone bother with such a clichéd Ponzi script? Because cryptocurrencies are the new fad. Besides Alan’s project, several crypto Ponzi sites also attempt to scam people of their money, often succeeding in some cases.
Also, People tend to stick with the passive income trope of MLMs. Most crypto reward programs coopt MLM compensation grids, securing the loyalty of high yield seekers.
In this case, investors get a five percent (5%) weekly return on investment. Also, they get eight percent (8%) daily and three percent (3%) from the in-platform Referral Program.
- Membership recruitments in BLDR earn you 8%
- If a recruit invests in the company, you get a 3% bonus cut.
Although no testimonials attest to the legitimacy of these offers, top PRs mention having racked in profit piles from the affiliate program. It doesn’t pass for independent feedback, of course.
Red Flags: Pyramid Payment Model
Every passive profit plug anchoring on ICOs for funds ultimately faces insolvency when withdrawals exceed deposits or revenue streams.
The same issue plagues the storied bitcoin off-setter role of BuilderDefi flagship token, BLDR. Does BLDR have any intrinsic value, or does it merely rely on a growing holder base for some value? The latter is often the case.
By the way, overcoming the BTC as a primer is a lofty feat for any crypto company. So, how does BuilderDefi wish to rectify these issues? The answer is a locked liquidity pool.
What does that even mean?
A locked pool is a leash on insolvency, put simply. So, the execs plan to allow monthly withdrawals, preventing early investors from raking off the profits thereby creating a satisfied investor base. The ensuing balanced revenue stream contributes to a buoyant liquidity pool. Hence, the company remains operational.
Does it work like that?
The answer is no. As long as recruitment requires some spur, execs offer bonuses to sustain the deposits inflow, from which the in-platform token (BLDR) derives credence. Top-tier affiliates earn more profits and withdraw them in installments, slowing down the insolvency timeline.
However, Ponzi waits at the end of this skewed payment scheme.
Conclusion: Is it Legit?
One loose bit needs fixing in BuilderDefi. Why lock up deposits (or revenue) for forty (40) weeks? The best guess is that the operators hope to stall early closure _ until everyone buys the hype, deposit money, and lose it to Ponzi.
Ponzi schemes shuffle funds to early depositors. A forty-week lock period and a subsequent cash-out/withdrawal spree are the hallmarks of a Ponzi vicious cycle.