Introduction
GSPartners is a multi-level marketing (MLM) platform primarily focused on the promotion of blockchain-related educational content and cryptocurrency investments, specifically the G999 token. While it markets itself as a platform offering blockchain education and crypto asset-related opportunities, closer inspection reveals that the business model revolves heavily around recruitment. Affiliates are encouraged to join the program, invest in token-based products, and recruit others to join, creating a pyramid-like structure. In this detailed review, we will explore the products offered by GSPartners, its compensation plan, affiliate ranks, referral system, and the significant concerns regarding its legitimacy, particularly with regard to potential securities fraud.
GSPartners Products: Blockchain Academy and G999 Token
Blockchain Academy
The main product that GSPartners offers is the Blockchain Academy, an online learning platform designed to educate its members on blockchain technology, crypto assets, digital currencies, and related subjects. The platform provides video-based courses that break down the fundamental components of blockchain technology. These courses are structured to help affiliates gain a solid understanding of the blockchain ecosystem, making it more accessible for those new to the field of cryptocurrency.
The academy’s offerings include in-depth material on topics such as:
- Blockchain Basics: Understanding the underlying technology, how blockchain works, and its potential applications.
- Crypto Assets: Exploring different forms of digital assets like cryptocurrencies, non-fungible tokens (NFTs), and smart contracts.
- Digital Currencies: A detailed exploration of digital currencies, their function, and their impact on global finance.
- Colonization: The concept of digital assets and their growing influence on financial systems worldwide.
However, it is worth noting that despite the emphasis on education, the actual content and the overall value of these courses are difficult to assess, as there is little transparency regarding the quality and depth of the educational material provided. Furthermore, this focus on education seems to serve as a regulatory workaround to the core recruitment-driven nature of the business.
G999 Token
The central feature of the GSPartners ecosystem is the G999 token, a cryptocurrency that is largely positioned as an investment vehicle for affiliates. Affiliates are encouraged to purchase G999 tokens, often through the GSTrade exchange, and hold or sell them as part of their investment strategy. The value of the G999 token is largely driven by recruitment—new affiliates buy tokens, which increases demand and may inflate the token’s value temporarily.
As of now, the G999 token has limited real-world use outside of the GSPartners network, with its value primarily determined by the growth of the platform and the continued investment by new affiliates. This structure raises significant concerns about the token’s intrinsic value, as it seems to function more as a tool to fuel recruitment rather than as a legitimate cryptocurrency with tangible utility.
GSPartners Compensation Plan
One of the most concerning aspects of GSPartners is its compensation plan, which is heavily recruitment-based and reliant on continuous new investments from affiliates. This structure mirrors that of many MLM operations, where the primary focus is on recruiting others rather than selling actual products or services.
Affiliate Membership and Investment Packages
The primary way for affiliates to participate in GSPartners is by purchasing one of its membership packages, which include access to the Blockchain Academy, G999 tokens, and potential returns from investments. There are two main membership packages available:
- Brand Advantage Basic Package: This package costs 275 USDT annually and provides 3498 G999 tokens.
- Brand Advantage Premium Package: While the exact price of this package is unclear, it provides a larger number of G999 tokens than the Basic Package.
GSPartners allows payments to be made in either Bitcoin or Ethereum, although the packages are quoted in USDT (a stablecoin pegged to the US dollar). The requirement to pay upfront fees for annual membership and token purchases makes it clear that the platform relies on an investment-based model rather than a traditional product-sale business.
Group Volume (GV) and Affiliate Ranks
The GSPartners compensation structure is based on Group Volume (GV), which refers to the total investment made by affiliates within a given downline. Affiliates are incentivized to recruit others, as the total GV generated by their team determines their rank and the associated rewards. There are ten ranks within the GSPartners affiliate program, each with specific requirements related to the amount of GV generated.
The ranks are as follows:
- Affiliate: The starting rank for anyone who signs up and pays the required membership fees.
- Director: Requires generating $15,000 in GV per month.
- Regional Director: Requires generating $40,000 in GV per month.
- National Director: Requires generating $80,000 in GV per month.
- Executive: Requires generating $150,000 in GV per month.
- Continental Executive: Requires generating $369,000 in GV per month.
- International Executive: Requires generating $1,000,000 in GV per month.
- Ambassador: Requires generating $3,000,000 in GV per month.
- Global Ambassador: Requires generating $9,000,000 in GV per month.
- Crown Ambassador: Requires generating $27,000,000 in GV per month.
As an affiliate progresses through these ranks, they are rewarded with increasing bonuses, commissions, and potential profits. The key to moving up the ranks lies in the ability to recruit new members and generate additional GV, rather than any focus on selling products or services.
Referral Commission Structure
GSPartners utilizes a unilevel compensation structure for paying referral commissions. This system places an affiliate at the top of a team, with direct recruits placed on level 1. The subsequent recruits from level 1 affiliates are placed on level 2, and so on, creating a multi-tiered structure with an infinite number of levels. However, commissions are capped at nine levels.
The commission distribution varies across the different levels, as follows:
- Level 1: 10% commission on the investments made by direct recruits.
- Level 2: 4% commission.
- Level 3: 3% commission.
- Levels 4-6: 2% commission.
- Level 7: 3% commission.
- Level 8: 4% commission.
- Level 9: 6% commission.
This tiered structure means that affiliates earn a higher percentage on the investments of those directly recruited (level 1) and progressively lower percentages on the investments of recruits further down the line. Additionally, the exact role that G999 token investment plays in these commissions is not entirely clear, as there is ambiguity about whether direct purchases of G999 tokens through GSTrade qualify for referral commissions.
Blockstar Pool and Additional Incentives
One of the more complex features of the GSPartners compensation plan is the Blockstar Pool, a special incentive designed to encourage affiliates to recruit large sums of investment. 4% of the total fee investment volume from GSPartners is allocated to this pool, which is then distributed among affiliates who successfully recruit large-scale investments.
The Blockstar Pool operates as follows:
- $3000 investment = 1 share of Blockstar Pool.
- $9999 investment = 3 shares of Blockstar Pool.
- $29,999 investment = 5 shares of Blockstar Pool.
The Rising Blockstars tier represents the top-level affiliates, although there are indications that the rewards and shares are time-sensitive, with certain levels of investment required each month. This adds an element of urgency to the recruitment process, incentivizing affiliates to bring in new investments regularly to maintain their eligibility for rewards from the Blockstar Pool.
Allegations of Securities Fraud and Legal Concerns
While the product offerings and compensation structure might appear legitimate on the surface, there are significant concerns regarding the legality of GSPartners’ operations. Specifically, GSPartners’ business model bears many similarities to those that have been classified as securities fraud, particularly in relation to its reliance on the recruitment of new investors and the promise of returns based on G999 token purchases.
G999 Token as an Investment Vehicle
The G999 token is at the heart of the GSPartners investment model, and while it is marketed as a blockchain-based cryptocurrency, its actual utility is questionable. The value of the G999 token is primarily driven by the continuous investment of new affiliates, and it is often sold with the expectation that its value will increase over time. This type of structure mirrors that of a Ponzi scheme, where returns to earlier investors are paid using the funds invested by new recruits.
Despite being sold as a cryptocurrency, the G999 token’s value is not backed by any real-world utility or significant market demand. Rather, it is artificially inflated through constant new investments. The increasing value of the G999 token is a result of recruitment, not because of any inherent value in the token itself.
Securities Fraud Risk
Given that affiliates are encouraged to invest in the G999 token with the expectation of making a profit through recruitment, this raises significant concerns under securities law. According to securities regulations in many jurisdictions, the sale of investment products like the G999 token could be classified as a security, subject to strict regulatory oversight.
However, GSPartners does not appear to be registered with the relevant financial authorities in countries where it operates, such as the United States, South Africa, or Mexico,
which further compounds the risks of securities violations. If authorities were to scrutinize GSPartners’ operations, it is possible that the platform could face significant legal challenges, potentially leading to regulatory shutdowns or penalties for engaging in unregistered securities activity.
Conclusion: A Risky and Controversial Business Model
GSPartners’ business model shares many similarities with other controversial MLM platforms that promote recruitment over actual product sales. While the Blockchain Academy and G999 token may offer some educational content and speculative investment opportunities, the company’s reliance on recruitment and investment inflows is concerning. The lack of transparency regarding the value of G999 tokens, combined with the promise of high returns from investments, makes GSPartners susceptible to legal scrutiny for securities fraud.
At its core, GSPartners is structured as a pyramid-like MLM platform, where affiliates earn primarily through recruiting others rather than selling legitimate products. The use of G999 tokens, the Blockstar Pool, and various other incentive programs is designed to attract large-scale investments, but these products are ultimately speculative, with limited long-term value unless the recruitment of new affiliates continues at a rapid pace.
For individuals considering participation in GSPartners, it is crucial to recognize the risks involved. Most affiliates will likely lose money as the model depends on a constant influx of new recruits to sustain payouts. Without proper registration or regulatory oversight, the long-term sustainability of GSPartners remains highly uncertain, making it a potentially risky investment.
If the company is subject to regulatory action, affiliates could face significant losses, and the G999 token may suffer from a complete collapse in value, further reinforcing the notion that GSPartners is primarily a recruitment-driven investment scheme, rather than a legitimate business opportunity.
