Titan Club debuted in the second half of 2020. Tihe platform quickly grew in popularity. It is yet another investment scheme that makes use of cryptocurrencies as the underlying infrastructure. The service has grown in popularity, particularly in Africa, where much of the advertising has focused. As a result, many people have attempted to determine the legitimacy of the offering.
Ponzi schemes, scams, and outright theft abound in the cryptocurrency world. As a result, many people are understandably skeptical of claims of high returns on investments and referral structures. Such platforms have duped many people, and any new crypto project should be approached with caution.
What is Titan Crypto Club?
If we go to their official site, the service advertises itself as a crowdfunding crypto-based system that uses donations to achieve these goals. The donations are made in Bitcoin, and the minimum payment is 14 US dollars. Each time a new user enters the structure, they have to make the payment. Additionally, a new user must refer at least two new people to receive money from the investment fund.
Now, this structure of referrals is called by Titan Crypto Club as a matrix. Of course, it appears to be a pyramid for those who have been in this place before. The base becomes wider as more and more new people contribute to the investment scheme.
Also similar to the world of pyramid schemes is how Titan Crypto club attracts new users. One can only join using the referral link of an existing user, not directly from the site. This is similar to how crypto scams have operated in the past and how Ponzi schemes work in traditional finance.
The payouts a new investor gets once he/she has successfully registered in the platform are dependent on how many new people they can bring onboard. So, a new person needs to constantly be looking up for new people to join or risk losing the initial investment. There are limits on how long this type of structure is sustainable.
The one addition Titan CryptoClub makes to this formula is the introduction of pools. These are supposed to prevent people from just getting stuck in a loop of searching for constant referrals. They are similar to subscription packages, but let us take a closer look.
What Pools make up Titan Crypto Club?
Pools are different levels of access in Titan Crypto Club. There are eleven pools in total, and the higher a user climbs, the more benefits and the revenue it is possible to get. Of course, each pool also has higher initial investments required, and more commitments need to be made.
Both the rewards and the investment requirements to climb the different pools become higher. The question is, how many will be able to move to the next pool? Each pool requires a payment double the preceding amount. Effectively, the price of entrance is climbing exponentially with each new step, so very few will be able to get to the end. Another hallmark of a crypto scam. Let us look at each pool now.
- Pool number 11: The basic and cheapest pool in Titan Crypto Club, pool 11 is the starting point for everyone. On this entry pool, all newcomers are expected to make an initial payment of 14 US dollars. The expected return is 49 dollars with each new person they get into the program.
- Pool number 10: Once a person has brought enough new people and is ready to upgrade, they move to this pool. The initial fee is 28 dollars, and the expected payout is 98 dollars.
- Pool number 9: The entry price at this level is 56 dollars. The expected payout is 196 dollars for those that have managed to go this far.
- Pool number 8: At this level of the scheme, people are required to 112 Us dollars. The payout is 392 US dollars.
- Pool number 7: On the next level of the scheme, we have an initial fee of 224, which results in a return of 784 dollars.
- 6Pool number 6: Now, this is the last of the basic pool. From here on, things get more complicated, but pool six requires a payment of 448 dollars to receive a payout of 1,556 dollars.
- Pool number 5: From here on out, investors can only advance by meeting the required number of referrals. Before, it was possible to move up by paying the initial fee, but from this pool up, it is no longer the case. People need the required number of new entries and the initial investment. So, pool 7 requires a payment of 896 dollars for a return of 3,136 dollars.
- Pool number 4: Now the numbers begin to climb, but of course only by bringing new people in. The initial cost is 1,792 dollars to get 6,272 dollars.
- Pool number 3: We are almost at the top, and here the initial payment is 3,584 dollars for a return of 12,544 dollars.
- Pool number 2: Almost at the end, an investor needs to donate 7,168 dollars for a payment of 25,088 dollars.
- Pool number 1: Finally, at the very top of the pyramid. We have an investment of 14,336 US dollars to receive 50,176 dollars.
We used US dollars for the amounts even though this is supposed to work with Bitcoin. The reason behind this is that initially, the investments are so small that if expressed in BTC, it seems very little.
But shown in dollars, it is easier to see how the costs climb exponentially.
If you are looking at the numbers in money, this doesn’t look that hard. After all, you can cover the next investment fee by using the money gained previously without losing money. The investor is guaranteed to receive the payment in the next pool. Well, as we said before, Titan CryptoClub uses a matrix system.
In this case, the matrix refers to the number of people a user needs to bring into the platform. Each new person needs two referrals and three levels to move to the next pool.
A new person brings in two new people, those two in total have to bring 4, and finally, on the third level, eight new people need to be added. The initial investor needs to bring sixteen new users to the platform before receiving the payout or advancing to the next level.
The same system replicates for each pool. At pool 6, for example, a person wanting to advance would need to find sixteen people willing to pay 448 dollars before getting the payout. Each of those would also need to do the same to get the money. The scheme quickly becomes unsustainable.
It seems that Titan Crypto Club is just another Ponzi scam using crypto. But if you are not convinced, we can point to other warning signs.
Warning Signs of Titan Crypto Club
The entire platform is riddled with flaws and dubious practices. These are some of the issues:
1. No public founders
Nowhere on the site of Titan Crypto Club, the founders are mentioned. In their “frequent questions,” the only mention of the founding teams is “The concept belongs to a group of crypto enthusiasts, previous developers who had to let it go and taken over by new developers’ team and members of the community however they don’t have any special privileges.”
How many created the platform? What experience do they have? Where are they located? All is left unsaid. All of it points to a crypto scam.
2. No geographical location listed
Again, nowhere on their site, they list where the offices of the company are. Absent this information, and it is impossible to know if they are a regulated financial service. There is no official registration number of the company nor a license of any type. Again, a sign of a crypto scam.
3. No refunds possible
Stated on their site is the fact that there is no way to receive a refund. They claim this is because the contributions are between participants, but that should not be an obstacle to create some refund policy. Once more, a sign of a crypto scam.
4. Technical problems
In various forums on the internet, people complain that the site does not work as intended. Those who have managed to bring enough people to move to the next pool remain in the same place. Payouts are made with delays, and generally, no one answers these issues. The site claims they use smart contracts to manage the donations system, but Bitcoin does not support smart contracts. Again, a clear sign of a crypto scam.
5. Unrealistic expectations
The site claims that they can double the amount donated and no risks when using the service. Anyone familiar with investment strategies knows there is no such thing as zero risks. So, the claims are widely exaggerated and have no basis in reality. Again, a very clear sign that this is crypto scam.
Is Titan Crypto Club a Ponzi scheme?
Yes, all signs and clues indicate this service is yet another crypto pyramid scam that takes advantage of the lack of knowledge about cryptocurrencies in the general population. All the signs are there and point to a classic Ponzi scheme. Not the only one in the crypto world, and certainly, it won’t be the last.
Even armed with the knowledge this is a scam, you may be thinking it is possible to make a profit from it before it collapses. But that is not the case, and the Ponzi scheme only makes money for the creators that start already at the top levels. All the payouts along the way are financed by new people coming in. There is no way to predict when this will stop.
At any point in time, the money can stop flowing, and those that are still in the system are left holding the losses while the creators run away with the money. That is an accurate description since the founders are anonymous; once the Ponzi scam collapses, the people behind it will run away with the money.
The best advice is to stay clear of Titan Crypto Club and stop any people you know from investing in it. It is just that bad on an idea, and no one should participate in these types of scams in any capacity.
Conclusion
It is a sad fact in crypto that space is filled with scams. It is almost impossible to keep up with all new frauds that come up. It remains a very dangerous sector of the economy, and people must thoroughly research any new platform they are planning on using.
Otherwise, once the money has been paid, the chances of getting it back are very few and can take years to materialize.
We all have to be aware that many people in crypto are looking to prey on the ignorance of others. There are ways and tools to spot these scams. Of course, research is the best initial line of defense. Education and knowledge will always be the first line of defense, so follow this article How to Spot a Bitcoin Scam. For a collection of resources that will help to combat these scams.
