CATLY is a scam token: 3% earn Ponzi scheme with ties in China and Russia. Stay away from it!

Welcome to another episode of "beware it's a scam"! The analysis of scam/ponzi/MLM crypto "trading companies" or tokens that are clearly a scam.

CATLY meager homepage.

CATLY is a BEP-20 token, created on the Binance Smart Chain.

Catly’s website domain (“catly.io”), was privately registered on March 2nd, 2023.

SimilarWeb tracked top sources of traffic to Catly’s website as Russia (24%), Ukraine (15% and Indonesia (11%).

The \"whitepaper\" has chinese characters in it.

Now, why CATLY is clearly a Ponzi scheme and a scam?

Catly affiliates invest USDT for for CATLY tokens. Pricing isn’t provided marketing says 1 USDT is equivalent to 250 CATLY.

Once invested in, CATLY is parked with the company on the promise of a daily 3% ROI (staking).

Catly’s “staking” investment plan runs for 15 days, during which staked CATLY is locked.

Over the 15 days the daily ROI can be cashed out. After 15 days the original CATLY investment amount is unlocked.

Catly pays referral commissions via a compensation structure.

A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):

If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.

If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.

CATLY caps referral commissions down ten unilevel team levels.

Referral commissions are paid as a percentage of tether deposited in across these ten levels as below:

• level 1 (personally recruited affiliates) – 3.5%
• level 2 – 1.8%
• level 3 – 1.6%
• level 4 – 1.4%
• level 5 – 1.2%
• level 6 – 1%
• level 7 – 0.8%
• level 8 – 0.4%
• level 9 – 0.2%
• level 10 – 0.1%

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There are no information that leads to think that they will actually pay anything if you stake the token with them. Thye fails to provide any evidence of that or other source of external revenue generation. Probably the token price will be dumped a little time after the airdrop.

This means that new investments are CATLY's only revenue. Using new investment to pay off existing investors makes CATLY a direct Ponzi scheme.

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Some information is taken from BehindMLM , the rest is taken directly from the company's website and from my personal research. Since the website is full of ads I prefer to recap the important info on this topic.

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Please take this advice: stay away from such companies/tokens! They are a scam!

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Disclaimer: This is not a financial advice. This post is just a discussion on a topic.

While commenting, please respect other's opinion (and mine)!