On its website, First Scrap says nothing about who owns or runs the business.
The name of First Scrap’s website, “firstscrap.com,” was registered for the first time in November 2020. The last change to the private registration was made on July 2, 2022.
To look like a real business, First Scrap’s website lists a random residential address in Canada. This has nothing to do with doing your due diligence.
The website for First Scrap went live in the middle of 2021, around the same time that the company started up.
At the end of May 2022, First Scrap stepped up its marketing by introducing “John Ronald”:
“John Ronald” is an actor named Daniel Pulyakh (Danil Pulax) from Moscow, Russia.
Since the May 2022 promo video, Russian scammers have hired more actors to play the rest of First Scrap’s executive team.
The above Facebook post makes it sound like a marketing video for Boris’s rented office as the CEO is on the way.
If an MLM company isn’t clear about who owns or runs it, you should always think twice before joining or giving them any money.
The first products of Scrap
First Scrap has no products or services that can be sold.
Affiliates can only sell First Scrap’s affiliate membership.
First Scrap’s Plan for Payment
Affiliates of First Scrap invest in USD and cryptocurrencies with the promise of the following returns:
Bronze: invest $100 to $10,000 and get a daily return of 1.55% Silver: invest $10,001 to $35,000 and get a daily return of 1.85% Gold: invest $35,001 to $60,000 and get a daily return of 2.15% Platinum: invest $60,001 to $100,000 and get a daily return of 2.45%
Note that there is a 7% fee on all withdrawal requests from First Scrap. Affiliates of First Scrap can only cash out twice a month.
The MLM part of First Scrap makes money when affiliate investors are brought in.
Commissions for referrals
Affiliates of First Scrap get a cut of the money invested by affiliates they brought in.
Affiliates in the bronze level get a 6% referral fee.
Affiliates in the silver level get a 7% referral fee.
Affiliates in the Gold Tier get an 8% referral fee
Affiliates in the platinum level get a 9% referral fee.
Commissions that don’t end
A binary compensation structure is how First Scrap pays out commissions that keep coming in.
A binary compensation structure puts an affiliate at the top of a binary team, which is split into two sides (left and right):
There are two positions on the first level of the binary team. The second level of the binary team is made by splitting the first two positions into two more positions each (4 positions).
The next levels of the binary team are made as needed. Each new level has twice as many positions as the one before it.
Affiliates are hired for positions on the binary team in both direct and indirect ways. Note that a binary team can grow as deep as it wants.
At the end of each day, First Scrap adds up the amount of new money invested on both sides of the binary team.
Affiliates get paid 8% of the money that is put into the side of their binary team that is weaker.
Affiliates in the bronze tier can make up to $1000 a day.
Affiliates in the silver tier can make up to $3500 a day.
Affiliates in the Gold Tier can make up to $7500 a day.
Affiliates in the platinum level can make up to $10,000 a day.
Once the payout has been made, the volume is matched with the stronger binary team side and the hand is flushed.
Any space left on the side of the stronger binary team is moved over.
Signing up to become a First Scrap affiliate is free.
To fully take part in the attached income opportunity, you must make an initial investment of $100 to $100,000.
First Scrap asks for money through Perfect Money and other cryptocurrencies, as well as US dollars.
The End of the First Scrap
First Scrap says that its recycling operations bring in money from outside sources.
First Scrap is a part of First Scrap Corporation Limited’s business.
We are a world-class private limited company that buys, processes, and sells both ferrous and non-ferrous metals that have been recycled.
The recycling operations of First Scrap are made up, just like its executives.
This is a typical Ponzi scheme by Boris CEO.
As with all MLM Ponzi schemes, once there are no more people to sign up as affiliates, there will be no more money coming in.
This will stop ROI from making money, which will eventually cause First Scrap to fail.
The math behind Ponzi schemes makes it clear that most people will lose money when they fail.