Is SMICap a Ponzi Scheme?
I wish to discuss the question - is SMICap a ponzi scheme.
What is a ponzi scheme?
A ponzi scheme is a fraudulent investment operation that pays returns to investors, not from any actual profitable investment earned by the organisation, but from money paid by subsequent investors.
Is SMICap a ponzi scheme?
1) SMICap operates the tokens program, which is a virtual game program. The tokens program is not an investment program, nor a finanical program, nor an insurance, nor a savings program. Tokens are virtual game units, which are valuable within the community of participants only.
2) Unlike all scams, the company clearly states the nature of the tokens program, ie., non-investment, in its regular messages to all members. See below for an example of such a candid message.
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3) The returns to any participants of the tokens program are never based on money from the latter participants. SMICap operates a tokens trading platform where old and new participants buy/sell the tokens based on actual demand and supply conditions.
See below picture which shows an earlier participant (account ID 75819) bought tokens at US$0.51 each from a latter participant (account ID 354322).
4) The tokens are sold freely between members, whether they are old or new members. There is no such thing as only new members buy tokens from old members.
Old members also buy tokens from new members at the value specified by new members, as shown above.
So, the program is not ponzi - not dependent on new members or new accounts to buy the tokens.
5) As seen from above, money change hands between buyers to sellers, whether the buyers are new or old and whether the sellers are new or old. New sellers get to cash out their tokens by selling to old members, as shown above.
6) Also, when the value of the tokens rises from its base value of, says, US$0.27 each to, says, US$0.51 each, all participants, whether old or new members, who own the tokens, are enriched together with the rising value of the tokens!
7) After each price-splitting, all accounts, even inactive accounts, receive the same multiplication of tokens qty, too, regardless of early accounts or latter accounts.
What does this show, when all accounts are enriched together?
It shows that the tokens program works on 1 formula throughout the program. The founder could have NOT multiplied the tokens qty of any inactive accounts, so that these inactive accounts would not receive any further gains, right?
But, the founder wants to enrich those who put their money, patience and trust in him and in his program.
8) Besides, SMICap has other sources of fund outside of the tokens program. 50% of such fund are distributed to all active accounts, as variable monthly profit-sharing amounts. So, SMICap does have actual profitable investment avenues. See below screen-shot taken.
9) Though the variable monthly profit-sharing amounts seem not much an amount for each account, there are more than 300,000 accounts, all active accounts enjoying such variable amounts monthly! The above report is on one of my US$500 accounts with SMICap.
10) One major source of the external fund is profits arising from tradings in Nikkei Index, an actual financial market. Other external sources of fund come from subsidiary companies duly setup in Asian countries. One such setup is the monthly rental income from renting out two commercial properties in Singapore.
Conclusion
As shown above, SMICap and the tokens program are not ponzi because:-
- SMICap operates a virtual game tokens program and doesn't pretend to be an investment program, unlike all those scams which claim to be investing in nature.
- The returns are not based on money from latter accounts or participants.
- All accounts, whether new or old, enjoy the same rate of increase with the rising value of the tokens.
- All accounts, whether active or inactive, receive the same rate of multiplication to their tokens qty after a price-split.
- There are actual outside sources of fund, eg., the trading profits in Nikkei Index, being distributed to every active account as variable profit-sharing amount.
Did I answer the question 'is SMICap a ponzi scheme'?
I detest ponzi scheme and I trust that the above discussion is useful to you.
If you feel I have not answered fully, or if you want to ask me any question about the tokens program, please let me know by clicking HERE. I shall get right back to you.
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