I posted this on my blog last night and when I woke up this morning I had a surprising number of emails from people who have lost a lot of money on this platform. This message needs to be spread in order to ensure that people are alerted to the dangers with these types of scams. Please share the love and look out for each other!
With the buzz around all things blockchain, I wanted to share this with you as a caution to the types of dodgy projects that there are out there.
I have had a number of people pitch me on USI Tech, and it always came off as a bit of a scam platform to me. Overtly geared towards commissions based on referrals and building depth using the A-typical network marketing strategy. That's not to say that network marketing is a scam, just some businesses that set up under that model are somewhere between sketchy and full on scams.
The following is an email that was sent to me by a contact who lost over $50,000.00 in USI Tech with the sudden changes that they said they had to make to their structure in light of the current market, and the overall public confidence with regard to lending platforms.
Hi All,
I just wanted to personally write to each of you and give you an update on what is happening with USI Tech, my thoughts, and what I am doing moving forward.
Certainly, this last week, probably even the last 6 weeks, has been a tough period in the USI Tech (and Bitcoin) space. Whilst the massive decline in Bitcoin price of nearly 70% was expected, it is nonetheless a hard time to sit and watch the value decline. Especially if you only got started in Bitcoin in November/December when prices were up over the $15k-$28k range. However, you still hold Bitcoin, so patience is important as time will be needed to get back to those levels. As long as you hold long term, this is just a short-term loss on paper. Remember, when Bitcoin goes to over $50k per coin, you will be glad you purchased when you did.
Now turning to USI Tech.
As with any lending platform, USI Tech was always high risk, great returns too, but high risk. The demise of the lending program Bitconnect, as well as the massive declines in Bitcoin price, had a significant impact on these types of High Yield Investment Programmes (HYIP). We have seen Bitconnect scam out, and then Davor collapse. USI Tech is struggling to maintain public confidence and only time will tell if they will exit or payout.
My gut feeling right now is that we will be giving back an amount of Bitcoin that USI Tech believe is what is owing to you. Only you will know how much you think you will have owing. Here are some things to keep in mind so far:
1. USI Tech has indicated on 27th of Feb, that they will pay out on External, Internal and Partner Rebuys.
2. You will have received payments back each day, so it will be the balance owing for the package up to 100%. Everything over 100% has been terminated as you have received everything you will get.
3. If you did a Partner Rebuy for your team (like I did), USI Tech will assume you received cash for that, so it will come off your total like withdrawals.
4. Mining/purchase fees will not be reimbursed, so at a minimum, there will be some small losses to cover purchase fees when buying your package.
5. I have no idea how long it will take to be reimbursed.
It now looks like USI Tech version 2 will be focused just on mining. This will allow it to be more transparent, but it will also allow us to be able to compare to other mining opportunities. Most mining platforms take 6 months to receive 100% return on capital. You also get longer-term ownership. I personally don’t see why you would want a mining agreement for just 140%.
I will be buying a few of the new packages so I can simply see how they work and to compare. However, I don’t expect anyone to be putting money into USI Tech until we see how they handle the return of funds to everyone, or maybe not at all. Of course, that is up to you.
I am more inclined to be investing into known and reputable mining groups such as Bitclub Network. The goal for me continues and has always been the accumulation of Bitcoin over time, while the price is low, in the hope I would have 10 Bitcoin by the time it hits $100k. I am still focused on that goal and will continue to invest in Bitcoin and Altcoin strategies to accumulate a passive stream of crypto. USI Tech may be a bump along that journey as I personally am owed over 10 BTC that I am waiting to see if USI Tech will give it back.
I continue to mine Bitcoin and I am receiving returns of 9% per month, and it is with the 10th largest mining company in the world. No more worrying about transparency and if it is legal. It is just mining.
In regards to tokens.
We have our tokens and only time will tell what will happen here. The next 10 days for USI Tech will be crucial to see if they can start to meet customer expectation and improve customer confidence. If not, then I am not sure the TechCoin will get off the ground. As soon as I know more about the TechCoin I will post it.
Finally, I just want to acknowledge and thank you for your support and commitment to moving forward. I appreciate that most, if not all of you, are frustrated and concerned about the future with USI Tech and more importantly, the money we have tied up with them. Some of you have invested just a few packages and some many hundred packages. No matter how many packages you purchased, it is money at risk, and I am hopeful of a positive outcome. I remain optimistic that payments will be made and we will be able to divest into other markets with our BTC.
I have recently started a trading course and I look forward to bringing you information about how you can leverage and trade of what I am learning and the trades I will be placing.
Please feel free to cut and paste, or simply forward this email to your team. I have only sent this to my personal contacts, so you will need to keep your teams informed.
The fact that this individual is closing his communications out with a pitch does not fill me with any confidence that he will be affiliated with dealings that are worth pursuing. Although I did take out a very small position in USI Tech, I have not shared this with anyone, nor have I promoted it in any way, shape or form. My involvement was purely experimental, and the platform was one that did concern me, so $150.00 lost on my part is no big deal.
What this has given me is a line of reliable information about what USI Tech is like from the inside. In a short, it is little more than hype and a Ponzi scheme. As you can see from the popup that I have taken from my back office, there are communications about the strategy for repayments to be made to all people who are owed Bitcoin. Do I trust this to take place, not really.
I expect that USI Tech will suffer further setbacks and the subsequent financial losses associated with these, which will be compounded by the reputation they have now earned. MLM companies have a hard enough time in the public eye, and this is pretty much the final nail in the USI Tech coffin in my opinion.
The misinformation surrounding this business is blatant and laughable. The promo video they used to draw people in has cited Bill Gates as a supporter of cryptocurrency when he has recently spoken out about being opposed to it. In short, my crypto enthusiast friends, stay the heck away from garbage like this unless you are happy to experiment in the face of inevitable losses.
Originally posted on my blog at TechMagy and shared here to alert the Steemit Community.
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