Introduction to FluxCart
FluxCart is a relatively new multi-level marketing (MLM) company operating in the cryptocurrency investment space. Despite its recent emergence, FluxCart has already raised significant concerns due to its lack of transparency and questionable business practices. With no clear information about its leadership or ownership, it’s crucial to take a closer look at what FluxCart offers, its business model, and whether it represents a legitimate opportunity or a potential Ponzi scheme.
ScamMinder AI has given FluxCart a trust rate of 0, flagging it as a confirmed scam. Our AI detected multiple red flags, categorizing FluxCart with a scam tag, You can also check out our YouTube video for an in-depth review of FluxCart
FluxCart Website Domains
FluxCart fails to provide any information regarding its ownership or executives on its website. The company is associated with several domains:
- fluxcart.store – First registered in December 2023, with a private registration updated on January 24th, 2024.
- fluxcart.top – First registered in December 2023, updated on September 11th, 2024, and already abandoned.
- fluxcart.vip – Registered in September 2023, with a private registration last updated on November 2nd, 2023 (already abandoned).
- fluxcart.bond – Privately registered on September 15th, 2024.
FluxCart lists a UK company, “Fluxcart E-Commerce Technology Co., LTD,” registered in April 2022, as part of its legitimacy claim. However, this entity predates the MLM company by over a year and a half, indicating no connection between the two.
Chinese Ties and Origins
Evidence within FluxCart’s website source code points to Chinese origins for the company. Embedded Chinese characters and links to a FluxCart app suggest the individuals running the operation are likely based in China.
Given China’s history of tolerating and enabling fraudulent business operations, especially in the cryptocurrency and MLM spaces, FluxCart’s apparent Chinese ties should raise serious caution for potential investors. Lack of transparency around ownership and an untraceable anonymous corporate structure make it extremely difficult to verify any claims of legitimacy.
Cryptocurrency investment schemes with opaque ownership and operational structures based in China have an elevated risk of being scams or Ponzi schemes. Investors would be wise to exercise extreme skepticism and thorough due diligence before engaging with FluxCart or companies like it that appear to have Chinese origins and lack clear accountability.
FluxCart’s Products
FluxCart does not offer any tangible, retailable products or services. The only thing affiliates can promote and sell is the FluxCart affiliate membership itself. There are no physical goods, digital products, or services being provided by the company. The entire business model revolves around recruiting new members and having them invest money into the scheme, with the promise of daily returns and commissions from recruiting others. This lack of a legitimate product or service offering is a major red flag that FluxCart is likely an illegal pyramid scheme or Ponzi operation.
Compensation Plan Overview
FluxCart’s compensation plan is centered around affiliates investing in Tether (USDT), a popular cryptocurrency pegged to the U.S. dollar. The more an affiliate invests, the higher the tier they unlock, with each tier promising increasingly lucrative daily returns. The investment tiers and associated daily return percentages are as follows:
- VIP1: Invest 35 USDT and receive 2% to 2.3% daily returns.
- VIP2: Invest 500 USDT and receive 2.3% to 2.7% daily returns.
- VIP3: Invest 3000 USDT and receive 2.7% to 3.2% daily returns.
The compensation plan also includes higher investment tiers, but these are not publicly disclosed on FluxCart’s website or marketing materials. The allure of these undisclosed tiers, promising even higher daily returns, serves as a tempting hook to entice affiliates to invest larger sums of money.
It’s important to note that these promised daily returns are unsustainably high and defy the principles of legitimate investment opportunities. Such exorbitant returns are a hallmark of Ponzi schemes, where new investor funds are used to pay off earlier investors, creating an illusion of profitability until the scheme inevitably collapses.
Referral Commission Structure
FluxCart pays referral commissions on invested USDT across three levels of recruitment:
- Level 1 (personally recruited affiliates) – 20%
- Level 2 – 5%
- Level 3 – 3%
The higher the investment tier an affiliate is on, the more they can earn from their downline’s investments through this referral commission structure. With lucrative percentages offered on multiple levels, FluxCart heavily incentivizes aggressive recruitment of new investors to maximize earnings.
How to Join FluxCart
Membership in FluxCart is free, allowing anyone to sign up as an affiliate without any upfront costs. However, to fully participate in the income opportunity and earn commissions, affiliates must make a minimum investment of 35 USDT (Tether stablecoin).
This minimum 35 USDT investment grants access to the lowest tier, VIP1, which promises daily returns of 2% to 2.3% on the invested amount. Higher investment tiers, such as VIP2 (500 USDT) and VIP3 (3000 USDT), offer slightly higher daily return rates ranging from 2.3% to 3.2%.
While the initial membership is free, the requirement to invest at least 35 USDT effectively creates a pay-to-play structure, where affiliates must put money into the system to access the promised earning opportunities.
The ‘Click a Button’ Ponzi Model
FluxCart’s business model revolves around a fraudulent “click a button” scheme masquerading as a legitimate e-commerce opportunity. Affiliates are instructed to log into the company’s platform and repeatedly click a button, supposedly to place orders with retailers. The more an affiliate invests, the more frequently they must engage in this fictional order clicking.
However, there is no actual retail activity or genuine business operations taking place. FluxCart does not have any real products or services to sell. The scheme simply recycles money from new investor funds to pay returns and commissions to earlier investors, characteristic of a classic Ponzi scheme.
By having affiliates mindlessly click a button, FluxCart creates the illusion of conducting legitimate business transactions. In reality, this pointless activity serves no purpose other than to deceive participants into believing the company generates revenue from retail orders. The scheme entirely relies on a continuous stream of new investments to sustain itself and pay existing members, until the inevitable collapse when recruitment dries up.
Organized Crime Connections
Recent investigations have uncovered disturbing ties between “click a button” Ponzi schemes like FluxCart and organized crime networks, particularly those originating from China. These operations, often based in southeast Asia, have been identified as scam factories linked to human trafficking and other illicit activities.
In September 2024, the U.S. Department of Treasury took the significant step of sanctioning Cambodian politician Ly Yong Phat for his involvement in facilitating Chinese human trafficking and the operation of scam factories within Cambodia. Evidence suggests that the same criminal network behind these factories is responsible for the proliferation of fraudulent “click a button” schemes across the internet.
While the full extent of FluxCart’s ties to these criminal enterprises remains unclear, the company’s lack of transparency, dubious business practices, and apparent Chinese origins raise serious concerns about its potential involvement in these nefarious activities. Investors and participants would be wise to exercise extreme caution and scrutiny before engaging with platforms that exhibit such alarming red flags.
Other Red Flags
FluxCart exhibits several other major red flags that should raise concerns for potential investors. Firstly, the complete lack of transparency regarding the company’s ownership and leadership is a glaring issue. Legitimate businesses typically provide clear information about their executives, founders, and key personnel. However, FluxCart fails to disclose any such details, making it impossible to verify the credibility and background of those running the operation.
Furthermore, FluxCart’s claims of legitimacy are questionable at best. The company attempts to establish credibility by referencing a UK-registered entity called “Fluxcart E-Commerce Technology Co., LTD.” However, this company predates the Ponzi scheme by over a year and a half, suggesting no actual connection between the two. Such misleading tactics raise doubts about FluxCart’s trustworthiness and commitment to transparency.
According to Google Trends data, FluxCart has primarily targeted users in Middle Eastern countries such as Iran and Iraq, as well as Bangladesh. These regions show a significant spike in search interest, indicating that most of FluxCart’s victims likely come from these areas.
Conclusion and Recommendation
FluxCart exhibits numerous red flags that strongly indicate it is a fraudulent Ponzi scheme masquerading as a legitimate MLM opportunity. Its lack of transparency regarding ownership and leadership, dubious connections to China and organized crime networks, and complete absence of any real products or services are major causes for concern.
The core business model of FluxCart revolves around a fictional “click a button” system, where affiliates are promised returns by placing fake orders with retailers. However, there is no actual retail activity taking place. Instead, FluxCart simply uses new investors’ money to pay earlier investors, the hallmark of a Ponzi scheme.
Recent investigations have uncovered ties between these types of “click a button” scams and organized crime groups, particularly those operating out of southeast Asia. In September 2024, the U.S. Department of Treasury took action by sanctioning a Cambodian politician linked to Chinese human trafficking and scam factories believed to be behind the proliferation of such fraudulent schemes.
In conclusion, before engaging with any online platform like FluxCart or others that raise red flags, it’s crucial to safeguard yourself from potential scams. ScamMinder AI is an excellent tool helping you identify suspicious websites and prevent falling victim to online fraud.
By simply scanning a site with ScamMinder AI, you can get real-time insights into its legitimacy, ensuring that you avoid risky investments or dangerous platforms. Always stay safe online and make informed decisions by using ScamMinder AI as your trusted scam-detection tool before exploring any unfamiliar sites.
