Barnaje presents itself as an “nameless DAO that’s group powered & fraud proof.” That is an prompt crimson flag.
In MLM, admins conceal behind claimed decentralization to keep away from being named as house owners of scams.
The reality is an MLM firm doesn’t arrange itself. It’s arrange and owned by a person or people. Usually, these people are the first beneficiaries of the rip-off.
One other crimson flag is Barnaje’s advertising and marketing movies hosted by robodubbed AI avatars. Once more, that is Barnaje’s admins hiding themselves from firm associates.
Barnaje’s web site area (“barnaje.com”), was privately registered on Could ninth, 2023.
As of December 2023, SimilarWeb tracked prime sources of Barnaje web site site visitors because the US (82%), UK (9%) and Ecuador (7%).
As at all times, if an MLM firm will not be overtly upfront about who’s working or owns it, suppose lengthy and laborious about becoming a member of and/or handing over any cash.
Barnaje’s Merchandise
Barnaje has no retailable services or products.
Associates are solely in a position to market Barnaje affiliate membership itself.
Barnaje’s Compensation Plan
Barnaje associates take part in a twenty-one tier 2×9 matrix gifting scheme.
A 2×9 matrix locations an affiliate on the prime of a matrix, with two positions instantly underneath them.
These two positions type the primary stage of the matrix. The second stage of the matrix is generated by splitting every of those two positions into one other two positions every (4 positions).
Ranges three to 9 of the matrix are generated in the identical method, with every new stage housing two occasions as many positions because the earlier stage.
Positions in a Barnaje associates matrix, at any tier, are stuffed by way of direct and oblique recruitment.
Barnaje associates should buy-into every gifting tier sequentially with tether (USDT):
- Bronze 1 – 50 USDT
- Bronze 2 – 100 USDT
- Bronze 3 – 200 USDT
- Silver 4 – 300 USDT
- Silver 5 – 500 USDT
- Silver 6 – 700 USDT
- Gold 7 – 1000 USDT
- Gold 8 – 1400 USDT
- Gold 9 – 1800 USDT
- Emerald 10 – 2200 USDT
- Emerald 11 – 2600 USDT
- Emerald 12 – 3000 USDT
- Sapphire 13 – 3500 USDT
- Sapphire 14 – 4000 USDT
- Sapphire 15 – 4500 USDT
- Ruby 16 – 5000 USDT
- Ruby 17 – 5500 USDT
- Ruby 18 – 6000 USDT
- Diamond 19 – 7000 USDT
- Diamond 20 – 8000 USDT
- Diamond 21 – 10,000 USDT
Matching Bonus
Ranging from Silver 4, Barnaje pays a 25% matching bonus on gifting funds acquired down two ranges of recruitment.
Observe that to obtain the Matching Bonus, the receiving affiliate will need to have purchased into the gifting tier being matched.
Becoming a member of Barnaje
Barnaje affiliate membership is tied to a minimal 50 USDT gifting fee.
Full participation in Barnaje’s gifting scheme prices 67,350 USDT.
Barnaje Conclusion
Barnaje is a traditional unlawful gifting scheme, run by nameless scammers in cryptocurrency.
Whoever is behind Barnaje is predictably inclined to sovereign citizen nutjobbery:
That’s not solely cliche Barnaje follows. There’s additionally the everyday dOnAtIoNs and cRoWdFuNdInG nonsense;
Barnaje is a dynamic and revolutionary group donation platform that thrives on collaboration, empowerment, and development.
Barnaje’s objective to stay a personal, unregulated group underlines its distinct method in comparison with publicly accessible or regulated gross sales of securities, crowdfunding, and cryptocurrency platforms.
Sadly for the scammers behind Barnaje, gifting schemes are regulated. They’re unlawful.
Barnaje’s admins after all know this. And so we’ve got the Barnjae whitepaper – twenty-two pages of “let me inform you why my unlawful rip-off isn’t unlawful” waffle nonsense.
Incriminating proof, by the use of intent to mislead and defraud shoppers, could be present in Chapter 10 – Authorized and Regulatory Compliance.
This part clarifies the measures and rules that brace up Barnaje’s compliance with current legal guidelines, distinguishing it from illicit monetary schemes.
Right here Barnaje offers eight factors of pseudo-compliance protection.
1. No Expectation of Return:
A defining attribute of Barnaje is that every one donations made throughout the group are executed with no expectation of return.
This precept aligns with the ethos of donation, differentiating Barnaje from conventional funding schemes the place returns are anticipated.
Look, clearly the solely cause anybody participates in a gifting scheme is to steal cash from folks recruited after them.
To show some extent although, right here’s monetary incentive advertising and marketing from Barnaje’s personal official advertising and marketing documentation:
2. Licensing Settlement:
Upon becoming a member of, members enter right into a licensing settlement to make the most of the Barnaje platform for his or her capital elevating endeavors.
This formal settlement underscores the authentic and structured nature of the group’s monetary interactions.
You may’t “licensing settlement” your method out of monetary fraud. That’s all that must be stated on this level.
3. Freedom of Personal Contract:
Embodied within the US Structure is the precept of freedom of personal contract, which Barnaje and its members uphold.
The voluntary and contractual nature of membership inside Barnaje underscores its adherence to this constitutional precept.
Cornell Regulation College defines freedom of contract as the power of events to cut price and create the phrases of their settlement as they need with out exterior interference from the federal government, contrasting it with authorities regulation1
This definition aligns with the broader understanding of freedom of contract within the U.S. authorized framework, which balances particular person contractual freedoms with obligatory governmental laws for the general public good.
This brings us again to sovereign citizen nutjobbery.
Merely put; nothing within the US structure permits scammers to run gifting schemes, by means of which they steal cash from nearly all of members they lure in with false guarantees of wealth.
4. Transparency and Automation:
The clear and automatic operation of Barnaje, facilitated by means of good contracts on the BNB blockchain, ensures a transparent and open course of devoid of deceit or misrepresentation.
This transparency is antithetical to the clandestine and manipulative operations attribute of pyramid or Ponzi schemes.
With nameless house owners mendacity by means of their enamel concerning the legality of gifting scams, pretending Barnaje is clear is laughable.
Good on Barnaje for recognizing its lack of transparency constitutes “deceit and misrepresentation”. Ditto the alignment with pyramid and Ponzi schemes.
5. Group-Centric Mannequin:
Barnaje’s mannequin is geared in the direction of group monetary empowerment slightly than particular person enrichment on the expense of others, a trademark of pyramid and Ponzi schemes.
The structured and cyclical donation course of inside Barnaje is designed to profit the group collectively.
Stealing cash from folks solely “financially empowers” these doing the stealing. The reality behind each MLM gifting scheme is almost all lose cash to admins, early members and prime recruiters.
6. Adaptive Compliance:
Whereas Barnaje operates in a novel area doubtlessly bereft of particular regulatory pointers, it’s dedicated to adaptive compliance.
As authorized frameworks evolve, Barnaje is poised to interact with regulatory authorities to make sure its operations stay throughout the scope of the legislation.
Gifting schemes are unlawful and have been for many years.
7. Instructional Engagement:
Barnaje prioritizes educating each its members and the broader public on its operational mannequin to dispel misconceptions and foster an accurate understanding of its authorized and operational framework.
Mendacity concerning the legality of unlawful gifting schemes doesn’t make them authorized.
8. Repetitive Cycle:
Barnaje: Encourages a repetitive cycle of donations to maintain the group monetary assist system.
Pyramid and Ponzi Schemes: Function till the collapse underneath their unsustainable monetary construction, leaving later entrants with losses.
That second paragraph is an correct description of Barnaje’s enterprise mannequin and the inevitable conclusion.
Barnage’s whitepaper goes on to deal with US securities legislation, citing the Howey Check. I gained’t go into depth on this as gifting schemes are sometimes regulated by the FTC (civil) and U.S. Postal Inspection Service (felony).
A latest instance of that is 8 Determine Dream Way of life, a gifting scheme launched in 2017.
The FTC sued 8 Determine Dream Way of life for telemarketing and shopper fraud in 2019.
A USPIS investigation resulted in felony costs filed in 2023. 8 Determine Dream Way of life’s three co-founders have since been arrested.
Like 8 Determine Dream Way of life, Barnaje’s gifting scheme is unlawful. Concentrating on of US residents brings it underneath the jurisdiction of the FTC and USPIS. In an try to evade authorities, we’ve got all of the decentralized nonsense.
As with all MLM gifting schemes, as soon as recruitment stops so do the gifting funds.
Main beneficiaries of MLM gifting schemes are the admins who run them, those that be a part of early and/or prime recruiters. To ensure that this to occur, nearly all of members within the scheme lose cash.