If you are an online money hunter looking for ways to make the next quick buck, you probably know that arbitrage opportunities are one of them.
Luckily, arbitrage opportunities in the crypto and forex niches have become massively popular over the last few years.
The caveat, however, is that con artists have started taking advantage of this to rip off their victims.
Today, we will be focusing our review on Afriq Arbitrage, a crypto arbitrage platform that guarantees a monthly ROI of 63.5%.
Afriq Arbitrage has drawn so much popularity lately, and in this post, I shared some of my findings about whether it is legit or a scam.
- What Is Afriq Arbitrage System?
- How Does The Platform Work?
- Is Afriq Arbitrage Legit Or Scam?
What Is Afriq Arbitrage?
Afriq JM Arbitrage (full name) is a platform that claims to offer investors a chance to make huge profits through crypto trading.
The platform, which also refers to itself as the “Ponzi Killer,” asserts that it achieves this through its automated arbitrage trading bot, designed to trade on behalf of investors 24/7.
Furthermore, the platform alleges that it runs a blockchain-based smart contract arbitrage trading system and that its liquidity is held in Binance.
The founder and CEO of the platform is Jesam Michael, a Nigerian entrepreneur who, according to his LinkedIn profile, possesses 15 years of expertise in crypto and forex.
While Afriq Arbitrage claims to be based in New Jersey, US, we cannot confirm the veracity of this claim, as we will discuss it in more detail later on.
Afrique claims that it can help investors achieve a 63.5% monthly ROI in a month, which sounds impressive, but there is a catch.
This relates to the operational procedures of the platform, which we will delve into below.
How Does The Platform Work?
As previously stated, Afrique Arbitrage maintains that it employs high-frequency trading bots to automatically buy cryptos at a lower price and sell them at a higher price to generate profit.
Moreover, the platform asserts that live trading takes place on the backend, implying that investors are unable to witness the live trading activity themselves.
It didn’t also disclose the exchanges that the bots leverage to execute arbitrage opportunities.
Now, the platform claims to generate money in two ways, namely:
- Investment Plan
- Referral Program
i. Investment Plan
Afriq Arbitrage offers a single investment plan, which costs $20.
To subscribe to this plan, prospective investors can either sign up directly on the platform’s website or use an affiliate link to register.
Afterwards, they deposit $20 worth of TRC-20 tokens into the address provided, while they sit back and earn rewards.
According to Afriq Arbitrage, their bots trade with user deposits and generate a daily ROI on their behalf.
Here is a breakdown of how the platform pays out this ROI to investors in the table below.
This means that, for example, you invested 100,000 NGN into Afriq Arbitrage.
You will earn 63500 NGN in ROI a month and 254000 NGN in ROI over four months.
That’s more than two times your capital! Too good to be true, right?
Well, I have a doubt about such a claim too. Read on!
ii. Referral Program
Members of Afriq Arbitrage receive a 5% referral commission.
The commission is solely based on direct referrals, meaning that there are no commissions for indirect referrals or spillover bonuses.
In my opinion, I think this referral commission is better compared to “Pay Peter to Rob Paul” or the binary tree structure typically employed by Ponzi schemes.
But that’s not to say that Afriq Arbitrage is genuine; I found some telltale signs that make me apprehensive about it, which I will share below.
Is Afriq Arbitrage Legit Or Scam?
These are a few of my concerns about Afriq Arbitrage.
i. Lack of transparency
Firstly, one of the biggest red flags about Afriq Arbitrage is its lack of transparency.
The company claims that it is based and registered in the US, whereas its founder and all of its promoters reside in Nigeria and are Nigerians. LOL.
A book titled “How to Sell to Nigerians” by Akin Alabi suggests that one of the selling secrets is to associate a white man or country with your product.
I think this is likely the tactic employed by the founder to lure unsuspecting Nigerians.
In my opinion, the information about the company’s location is misleading unless they can provide certificates proving their registration and licencing in the US.
ii. Founder’s history
As you may be aware, Safemoon is a well-known cryptocurrency that has gained popularity as a meme coin.
But there are concerns among some that it may be a fraudulent or pyramid-scheme coin.
The reason is that the coin does not have any utility except for making money for early buyers while dumping on late investors.
This gives me the impression that the founder has a penchant for Ponzi schemes.
iii. Liquidity held in Binance
Afriq Arbitrage claims it has its liquidity pool held in Binance but I am not certain if this true.
One of its promoters on Nairaland also made assertions that suggested that Binance acknowledges Afriq wallet addresses. See the screenshot below.
Well, in the slide show below, you can see that a Binance customer service agent denied this claim.
You will also see a screenshot of a withdrawal attempt from Binance to Afriq, but regrettably, Afriq did not display as the promoter had described it.
The only conclusion I can draw from the liquidity pool claim is that Afriq Arbitrage is using a Binance address for its transactions. How deceptive!
iv. Unrealistic ROI
It’s clear that Afriq Arbitrage’s promise of high returns is too good to be true.
I mean, a 63.5% monthly ROI generated solely from crypto arbitrage is outrageous.
The reason is that not only is the crypto market very volatile, but it has also become very difficult to find highly profitable crypto arbitrage opportunities.
Furthermore, the platform claims to use sophisticated trading bots to identify arbitrage opportunities.
However, there is no evidence to support these claims; it does not provide any information about how their algorithms work or backtesting.
In other words, there is no way to verify how its mind-blowing ROI is generated.
v. High withdrawal limit
Afriq Arbitrage places its minimum withdrawal fee at $50.
I think the limit is not only too high and inconsiderate but can also be a red flag.
Firstly, it makes it overly burdensome for investors with small capital to withdraw their funds.
Let’s say you invested $20 in Afriq.
This means that every month you will make $12.7 in ROI (20 x 63.5%).
By the end of the four months, you would have made a total of $50.8.
In other words, you have to wait for as long as four months to make a withdrawal without touching your capital.
This can be a barrier if you are in dire need of money from your investment.
Additionally, a high minimum withdrawal limit could be a warning sign that a platform has liquidity issues and, as a result, is trying to slow withdrawals.
If you’re looking for a reputable and legitimate platform to generate consistent income from cryptocurrency without fear of someone running away with your money, you can do so using this platform below.
Earn Consistent Yield From Crypto
Legitimate and reputable platforms to generate consistent income from crypto abound.
For example, Gate.io offers various financial products that earn consistent and genuine passive income streams for users.
One of its product offerings is “Auto Invest.”
The bot is programmed to use a USDT-cost averaging strategy to buy crypto at various intervals.
This not only helps an investor profit from the coin’s peak price but also minimises losses.
In addition, you can also earn substantial APR by investing in Gate.io’s HODL & Earn.
There has been a surge in fraudulent websites posing as crypto arbitrage investment platforms.
If you choose to accept offers from such websites, then you do so at your own peril.
Afriq Arbitrage is similar to a website we recently uncovered in our Scam Unmask category.
Endeavour to do your own research before investing.
Tell me what you think about Afriq Arbirtrage in the comment section.
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