NFT trading ruse MLM crypto Ponzi

Carnelian12 fails to provide ownership or executive information on its website.

Carnelian12 operates from two known website domains:

1. carnelian12.net – privately registered on February 20th, 2023
2. c12.net – first registered in 1999, private registration last updated on May 4th, 2023

In an attempt to appear legitimate, Carnelian12 provides an incorporation certificate for “C12 Trading & Services Limited”.

C12 Trading & Services Limited is represented to have been incorporated in Hong Kong on March 29th.

C12 Trading & Services Limited is a Hong Kong-based entity, founded by the tech team lead Andreas Garcia & Partners.

For the purpose of MLM due-diligence, basic incorporation in any jurisdiction is meaningless. This is due to the ease with which scammers are able to register shell companies with bogus details.

Furthermore, “Andreas Garcia & Partners” doesn’t exist outside of Carnelian12’s website.

As of April 2023, SimilarWeb tracked top sources of traffic to “carnelian12.net” as the US (33%), South Africa (14%), Spain (9%) and Italy (8%).

Top sources of traffic to “c12.net” are the US (16%), Germany (13%), Russia (10%), Brazil (9%) and Spain (8%).

The Central Bank of Russia issued a Carnelian12 pyramid fraud warning on May 2nd, 2023.

Although not definitive, this suggests Russian scammers might be behind Carnelian12.

As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.

Carnelian12’s Products

Carnelian12 has no retailable products or services.

Affiliates are only able to market Carnelian12 affiliate membership itself.

Carnelian12’s Compensation Plan

Carnelian12 affiliates invest USD equivalents in cryptocurrency. This is done on the promise of a 12% a day ROI paid for 12 days.

Carnelian12 pays referral commissions on invested cryptocurrency down three levels of recruitment (unilevel):

• level 1 (personally recruited affiliates) – 5%
• level 2 – 2%
• level 3 – 1%

Carnelian12 affiliates who convince others to invest over $100,000 in cryptocurrency receive 7% on level 1.

Joining Carnelian12

Carnelian12 affiliate membership is free.

Full participation in the attached income opportunity requires a minimum $12 investment.

Carnelian12 solicits investment in various cryptocurrencies.

Carnelian12 Conclusion

Carnelian12 represents it generates external revenue via NFT trading;

The main activity of Carnelian12 is trading digital assets.

The NFTs, which have given new life to cryptocurrencies by combining art value collection and digital technology, has also triggered smart upgrades in our yielding mechanism.

Notwithstanding the NFT market collapsed last year, Carnelian12 provides no verifiable evidence it is engaged in NFT trading.

Furthermore, Carnelian12’s business model fails the Ponzi logic test.

Carnelian12 pitches a 144% ROI over 12 days:

If Carnelian12 was capable of legitimately generating 144% every 12 days, what do they need your money for?

As it stands, the only verifiable source of revenue entering Carnelian12 is new investment.

Using new investment to pay a 144% ROI every 12 days makes Carnelian12 a Ponzi scheme.

As with all MLM Ponzi schemes, once affiliate recruitment dries up so too will new investment.

This will starve Carnelian12 of ROI revenue, eventually prompting a collapse.

The math behind Ponzi schemes guarantees that when they collapse, the majority of participants lose money.