How solid is the mysterious business model of CMMT Revolution?

London – CMMT Revolution Ltd. registered in the British capital London describes itself as a service provider in the field of Bitcoin mining, trading and masternodes. The aim is to combine these three business areas for investors. The company was founded in June 2018 by investment consultants, networkers and traders from Germany, Switzerland and the Balearic Islands, but for unknown reasons did not start its business activities until November 2018. As there were apparently start-up difficulties or product deficiencies, a relaunch took place on 1 May 2019. Patrick Kowatsch is CEO of the company and Michael Baur is CSO. A team of programmers and sales people currently offers investment packages in the areas of crypto mining, trading and masternodes. Self-confident they say: „We are a team of experts and can cover every part of our business with our first-class know-how. Whether trading-strategies, investment advice or professional network. CMMT has a very strong base.“
The novelty of the business idea allegedly consists in combining the sub-products trading, masternodes and mining in a single package. Such packages are based on trading for 50 percent, masternodes for 40 percent and mining for 10 percent. Customers are offered the prospect of dream returns. On December 5, 2019, the company wrote on its Facebook page, which hasn’t been updated for months: „There is a minimum and maximum of 100 up to 100,000 US dollars for deposits. Last year we saw a monthly profit of 10 to 20 percent. Setting a percentage is not feasible in this business and is somewhat volatile. For this reason, we can only give a range of 10 to 20 percent.“
CMMT Revolution also plans to reinvest profits in real estate. This is what is meant when the company declares that it wants to unite the virtual and physical market within the framework of innovative investment solutions without having to exchange crypto-currencies for dollars or euros. In the past, 50 percent of the income generated went into the commission wallet and was freely available there. The other 50 percent was invested in the Real Estate Wallet. This money was supposedly used to buy luxury real estate in good locations. Since the beginning of the year, 100 percent of the income generated has been available. Every investor can now decide for himself whether and how much he wants to invest in the Real Estate Wallet. Again, the intention is to invest in luxury real estate to secure capital.
On the official website of the companie, one gets to know very little about it. In order to even understand how the investment model should work in theory, the potential customer has to do extensive internet research. Everything remains unspecific. Is this intentional? But the CMMT Revolution website is still more meaningful than the Facebook page. Not a single post has appeared on it this year, so you almost have the impression that the company is no longer active. The last posting is from December 24th last year and contains a single short sentence: „Merry Christmas to all.“ Since then, the Facebook page has had nothing to say to potential investors, which in the social media age makes a devastating impression on a company.
Is the silence of the crypto service providers with a registered address in London related to the fact that the work with masternodes has become somewhat twilight? Masternodes are important network nodes of a blockchain. They are fully synchronized with the blockchain of a crypto currency, run around the clock and consist of a certain number of coins that are made available via a secure wallet. In other words: Masternodes are servers in the network of a crypto currency that store blockchains in real time and synchronize the data with other masternodes. They are one of several ways to passively make money in the crypto and blockchain world. The prospect of a passive income sounds tempting, but also attracts dubious providers and even fraudsters.
To be allowed to operate a masternode, users usually have to make large investments. More and more fraudsters are taking advantage of this fact. Earlier this year, several news portals in the blockchain scene reported that most projects with masternodes are currently scamcoins. Therefore, all interested parties should research very well in advance and consider carefully whether to enter the business with masternodes.
The German consumer centres warn in general against opaque transactions with crypto currencies. In May 2019, they published an article on their central website with the headline: „Crypto currencies: Dubious business around Bitcoin & Co.“ There it was written: „Often a very high return is promised. Mostly, however, it remains completely unclear how one should earn money and what the business model is. In many cases it is probably a matter of forbidden snowball systems, in which one should recruit further paying participants. Fraud cannot be ruled out either.“ About dubious crypto currency providers, the consumer protectors write: „They promise financial freedom, high returns or permanent passive income through crypto mining, trade or investment in new, supposedly future-oriented crypto currencies. The offers are often completely intransparent, the business models incomprehensible.“ Does this remind anybody of the promises and the business model of CMMT Revolution?
The German market observers name several criteria by which questionable crypto service providers can be identified. Three of these are exaggerated promises of returns, a company headquarters abroad and a lack of transparency. In the article mentioned, the consumer advice centre recommends ignoring offers with conspicuously high returns or permanently passive income. In order to be able to better assert one’s own legal claims in cases of doubt, care should be taken to ensure that the provider does not have its registered office abroad. In addition, one should distrust intransparent and incomprehensible business models for which one only receives more information after establishing contact or registration.