Hi, and welcome to my blog. Sebastian here. If you are here, chances are someone has reached out to you about FOMO5K, and you want to know if it’s a legit way to make some bucks online or if it is another BIG SCAM.
Well in this FOMO5K review, I’m going to show you everything you need to know about this company. So you can make an informed decision about joining either way.
Here are the points I will cover in this review:
- What is Fomo5K about?
- How does it work?
- Who is the founder of Fomo5K?
- What products or services they offer?
- How much it costs?
- And finally, I will give you my final point of view.
Without further ado, let’s move straight into the FOMO5K review to find out if this company worth your time and money.
Fomo5K review summary:
Company name: Fomo5K
Products/service: any product or service
Cost: 0,1 Eth (worth $27 at the time I was writing this post).
Legit or scam? – Scam
SOW YOUR SEED TODAY rating: 1/100
Do I recommend this? – NO for some good reasons.
What is Fomo5K about?
Fomo5K is Ethereum cash-gifting pyramid scheme that uses the Ethereum smart contract as a selling point.
In the past, I reviewed Million Money that also uses the Etheureum smart contract as a selling point.
And when you land on their home page, it seems this website is the safest way to invest your money and get a high return in 2020.
As you can see, in the image below, they claim their program is a completely risk-free program.
Hype and sales pitches or reality?
Yes, a smart contract is a safe way to exchange money, property, and anything of value in a transparent, conflict-free way without the need of an external trusted authority.
However, like any human endeavor, the Ethereum smart contract is not 100% safe.
In fact, a survey conducted by Nicola Atzei, Massimo Bartoletti, and Tiziana Cimoli reveals some vulnerabilities in this technology.
That’s what they say about the Ehtereum smart contracts in their survey report you can download here.
The fact that Ethereum smart contracts are executed correctly is a necessary condition for their effectiveness.
However, the correctness of executions alone is not sufficient to make smart contracts secure. Indeed, several security vulnerabilities in Ethereum smart contracts have been discovered both by hands-on development experience, and by static analysis of all the contracts on the Ethereum blockchain. These vulnerabilities have been exploited by some real attacks on Ethereum contracts, causing losses of money.
My concern is not with the Ethereum smart contract technology. It is well secured and transactions can be done in a transparent way.
But my problem is with the FOMO5K’s hidden founder who stands behind this technology while claiming that investing in their program is risk-free.
This is a pure lie because those who risk absolutely nothing here are the ones at the top of the pyramid (the founder, his friends and those who joined the program at its pre-launch).
Don’t get me wrong. I will prove it to you by the end of this review.
Lets’s move on to the next point of our FOMO5K review to find out how does it work?
How does FOMO5K work?
This is just a peer to peer donation program (not crowdfunding either) where members donate their money expecting to receive more money in return from the ones they will recruit.
That said, there are no products or services to promote. Money is generated based on the recruitment of new people to the system.
Here is how it works:
First off, you must have an Ethereum “Smart” Wallet.
✔️ Download MetaMask if you are on PC/Laptop.
✔️ Download TRUST Wallet APP if you are on MOBILE.
Fund your SmartWallet with 0.11 ETH (fee included) and buy your entrance position.
This amount of money goes directly to your upline pocket and you need to refer 2 people to the system and they also required to get 2 other people and so on until 5 levels deep.
To move on from one level to another level, you need to donate a part of the amount of money you received from your downlines to your upline.
If not, you will lose your profits and money from your downlines will not be allocated to you.
Here is a YouTube video that gives a full explanation of the FOMO5K.
Who is the founder of FOMO5K?
This is not new in the MMO space, because this is exactly what those who create scam sites usually do. So they can still set up other systems to rip people off again.
Does FOMO5K have any products to offer?
No, FOMO5K has no product or service to offer to its members. It is just a peer to peer donation program.
Isn’t it a crowdfunding platform?
The first impression you may have is that it is crowdfunding! And giving or receiving a donation is legal!
Yes, you are right! Crowdfunding is legal but according to how Wikipedia defines crowdfunding, FOMO5K is not a crowdfunding platform.
This is an unethical business model and it will be very hard to convince people to join you in this program.
In fact, a crowdfunding platform is legit if only the one who gives donation doesn’t expect a reward in return. But as long as you give a donation to others in order to be qualified to receive money from other members who will register after you, it becomes illegal.
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FOMO5K’s compensation plan
FOMO5K compensation is structured on a 2×5 matrix.
Here is how the compensation plan is structured:
- Level 1: You donate 0.1 ETH to your upline and you receive – 2×0.1 ETH from your downlines.
- Level 2: You donate 0.16 ETH your uplines and you receive – 4×0.16 from your downlines.
- Level 3: You donate 0.3 ETH to your uplines and you receive 8×0.3 ETH from your downlines.
- Level 4: You donate 1 ETH to your uplines and you receive 16×1 ETH from your downlines.
- Level 5: You donate 3 ETH to your uplines and you receive 32×3 ETH from your downlines.
Once you reached level 5 of the first matrix, the second begins.
- Level 1: You donate 6 ETH to your upline and you receive – 4×6 ETH from your downlines.
- Level 2: You donate 16 ETH your uplines and you receive 4×16 ETH from your downlines.
- Level 3: You donate 31 ETH to your uplines and you receive 8×31 ETH from your downlines.
- Level 4: You donate 60 ETH to your uplines and you receive 16×60 ETH from your downlines.
- Level 5: You donate 120 ETH to your uplines and you receive 32×120 ETH from your downlines.
Your net profit in this first 100 days is 3840 ETH – this is about $1 036 800 as 1 ETH at the time I was writing this is post equals 207$.
FOMO5K review: Is it a scam?
It all depends on how you define a scam.
Let’s face it!!
- 1. FOMO5K has no products or services that it offers to its users. Therefore, it is not a legitimate MLM company.
- 2. FOMO5K is also not a crowdfunding platform because members give donations expecting donations from other members that will join the platform after them. That is illegal too!
- 3. The Federal Trade Commission (FTC), states that “any business or program that generates profit focusing on recruitment than selling product/service is illegal“.
So I have to conclude, FOMO5K is a scam.
Your struggle may end here, check it out!
Still not convinced?
Let me show you some reg flags I discovered:
FOMO5K review: red flags I discovered
Red flag #1: Hidden owner
As I pointed it out earlier, we cannot find who runs this company. This is what exactly scammers usually do.
If FOMO5K was a legitimate company, why the owner didn’t show his identity?
Red flag #2: No 2 High-risk DAAPs in the world
I pointed it earlier, this program is a high-risk program while the hidden owner claims it is a risk-free program.
Just have a look at the image below.
This is exactly what Dappradar, the most trusted source of DAap (Decentralize Application) data analysis company shows us: FOMO5K is classified #2 ETH high-risk DApps in the world (at the time I was writing this post).
Reg flag #3: They’re not clear what they’re talking about
According to their statement, you don’t necessarily need to recruit members. Take a look at the image below.
That is not true.
If that’s the case, where did the money come from?
The truth is that you need to recruit people to earn from this system. If you recruit 2 and your 2 referrals can’t recruit 2 each and so on, you won’t make money.
Whether you believe me or not, if you end up by joining this program expecting you will make money without recruiting, you will be disappointed.
Before I end this FOMO5K review, I want to answer some questions that people frequently ask about FOMO5K.
FOMO5K’s Frequency Asked Questions (FAQ)
What is FOMO5K?
Fomo5K is a cash gifting and piramid scheme.
Is FOMO5K a BBB accred company?
No, FOMO5K is not a BBB accredited company.
How much Do I need to join FOMO5K?
The cost to join FOMO5K is 0.1ETH. This is about $27 at the time I was writing this post.
Depending on when you are reading this article, the dollar value may change.
Is FOMO5K a scam or a legitimate opportunity?
“Any piramid scheme is scam”. This is not my words. This is what exactly the FTC state. Fomo5k is a piramid scheme. So Fomo5K is a scam.
Can I make money with FOMO5K?
All depends. If you can recruit more people, it is possIble to make money.
My final thoughts
I think you have information about FOMO5K. I hope this information will be useful to you and will help you make an informed decision.
I don’t recommend this system because I simply know how these kinds of sites work. Those who lose money on these kinds of sites are more likely than those who make money.
That’s why I will not recommend such a site to my readers under any circumstances.
If above all you are willing to take the risk, then go ahead. But don’t say that I didn’t warn you.
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