ITP Technology has exploded in popularity over the last year, with enthusiastic investors raving about earning consistent passive income. However, alongside the hype are growing scam accusations and warnings. So what’s the real deal?
I invested countless hours researching ITP Tech from all angles to uncover the truth. I analyzed the company history, business model, founder background, user reviews and complaints, fraud red flags, and regulatory issues.
Here’s everything I learned about whether ITP Tech is a scam or not.
A Quick Recap on ITP Tech
For those unfamiliar, ITP Tech purportedly utilizes AI software for quantitative crypto trading. You simply invest a minimum of $100, click a few buttons per day, and can supposedly earn 2.5-4% daily returns.
The UK-based company launched in late 2022 and went viral on TikTok. It claims to already have tens of thousands of members earning “guaranteed passive income.”
Too good to be true? Let’s analyze further…
The Murky Company History & Origins
Major red flag #1 is the fragmented and dubious history of ITP Technology.
There are rumors ITP originated in Asia, likely China. While the site itpro.top was registered in 2018, internet archives show the current iteration seems to have only launched in November 2022.
The company claims establishment in Seattle USA in 2013 – yet provides no original incorporation certificates or paperwork.
ITP also claims rapid global expansion with offices in Japan, South Korea, Europe, and Canada. Again, zero evidence is provided to support these claims.
No executives, directors, or owners are identified either. I could find zero background info or LinkedIn profiles for any supposed team members.
The lack of company history transparency suggests an intent to hide origins and key individuals from scrutiny.
The “AI Trading” Explanation Doesn’t Quite Add Up
Let’s analyze ITP’s proclaimed money-making model…
Essentially, ITP asserts they have complex AI algorithms that conduct crypto arbitrage across global exchanges. This supposedly guarantees consistent 2.5-4% daily returns for investors by capitalizing on price discrepancies.
Now, crypto arbitrage itself is legal and potentially profitable. However, the returns touted by ITP Technology seem unrealistic even for advanced algorithms.
Even the top hedge funds struggle to reliably average over 20-30% annual returns, let alone 4% daily. Plus, such high frequency trading requires enormous starting capital to be worthwhile – not $100 starter investments.
The promised profits certainly appear exaggerated. And since ITP reveals no audited records of trading or algorithms involved, we must take their word at face value.
No Retail Product or Service Outside of Affiliate Investing
MLMs offering an affiliate investment share another common red flag – no real product or service except the investment itself.
Essentially you hand over money and have no idea what happens behind the scenes or whether any trading actually occurs.
Without retail customers outside the compensation plan, the business model depends on money from continually recruiting new affiliate investors. This raises Ponzi scheme concerns when payouts require money from new people versus actual profit-making activities.
Sky High Referral Commissions – Built For Recruitment
Additionally, ITP Tech pays incredibly generous referral commissions:
- Level 1 (Personally sponsored affiliates) – 12%
- Level 2 – 4%
- Level 3 – 2%
These bonuses incentivize aggressive recruitment over genuine product sales. And again, the only product is investing in ITP’s platform itself.
The business model demonstrates more hallmarks of a Ponzi scam built on acquiring new investments rather than trading, services, or conventional sales.
Anonymous Team Refuses to Prove Track Record
Transparency builds trust. Yet ITP’s founder and developers insist on staying anonymous.
If these traders genuinely devised AI capable of such consistent exponential profits, why hide?
Their algorithms would be enormously valuable in financial markets. Instead of running a shady crypto MLM, they could license the technology and become billionaires.
Unless of course, the algorithms and technology don’t actually exist…
No one has verified the ITP developer credentials or trading track records either. Given the outlandish income claims, proof seems wise before handing them your money.
Worldwide Securities Violations
Here’s an appropriate time to mention ITP Technology operates internationally, without proper securities registration.
They promote an affiliate investment opportunity. By law, securities dealing requires extensive paperwork and approval from regulatory bodies like the SEC.
Failure to register typically suggests scammers attempting to avoid compliance audits and oversight into their business practices.
Lawsuits, Warnings & Investigations in Multiple Countries
Perhaps owing to the regulatory non-compliance, ITP has already attracted an avalanche of legal trouble.
In November 2022, South Korean police arrested numerous ITP affiliates accused of operating an illegal MLM pyramid scheme.
The UK also flagged ITP for securities violations back in July 2022 when affiliates promoted the opportunity before the company formally launched.
I discovered similar investigations, charges, and issuer alerts in Canada, Germany, and Austria linking ITP Technology to get-rich-quick fraud.
The platform remains under active review in many areas. Authorities in Italy, Ireland, Belgium, and Netherlands have all warned consumers and opened cases around deception allegations.
Fake Reviews & Affiliate Hype Fabricating FOMO
Another element that kept arising in researching ITP Tech is fake social proof.
YouTube especially contains tons of suspiciously similar video testimonials, often from channels opened the same week with no other content.
Most showcase fresh accounts displaying huge balances after very short periods “thanks to ITP.”
The uniform positivity seems manufactured to spark FOMO and urgency around joining. Many affiliates openly discuss view count incentives and creating fake accounts to pose as satisfied investors.
What Do Real Customers & Investors Say?
With so much manufactured hype, locating candid user experiences proved challenging.
However, peeking into forum discussions and complaints revealed more negatives:
- Unable to withdraw funds
- Missing payments
- Accounts frozen suddenly
- Support non-responsive
A site called BehindMLM tracked ITP Tech since July 2022 and warned of red flags before collapse. And sure enough – on November 25th 2023 – ITP abruptly announced a shutdown.
Thousands of stunned investors flooded social platforms about disappearing accounts, losses ranging from hundreds into the tens of thousands, and abandonment by the anonymous owners.
Considering the regulatory heat surrounding ITP for months, critics feel vindicated yet saddened so many ignored the mounting evidence it would crumble.
Warning Signs Industry Experts Suggested For Months
Hindsight is 20/20. Looking back, experts highlighted plenty of reasons to exercise extreme caution regarding ITP Technology:
- No company ownership transparency
- Exaggerated earnings claims
- Dependence on new affiliate money
- Overemphasis on recruitment
- Lack of securities registration
- Fake social proof fabricating legitimacy
- Non-responsive support departments
- Regulator intervention and investigations
- Inability to validate software or trading history
Analysts consider these some of the clearest markers of eventual collapse.
Many bloggers warned affiliates not to promote ITP or sink life savings into the unsustainable model. Still, hype and coders insisting they found the key to unlimited wealth kept interest booming.
Hope and greed are difficult forces to overcome. Consider how many questioned Bernie Madoff despite impossible promised returns until his house of cards finally folded.
Is This the Final Chapter for ITP Technology?
For now, yes. However, don’t be surprised to see copycats emerge soon.
The ITP model follows similar trajectories as OneCoin, BitConnect, Control Finance, and other famous crypto scams.
Bogus trading algorithms touting ridiculous earnings growth while paying commissions for investor referrals. Buzz builds rapidly. Then the organizers vanish after sucking up as much capital as possible.
Eventually, countries issue legal smackdowns. But rarely do perpetrators face adequate jail time compared to the fortunes they steal.
And whatever enforcement occurs does little to deter the next iteration from launching.
So while ITP Tech itself seems done, I doubt this will be the last questionable platform promoting lucrative “AI trading opportunities” alongside pyramid rewards.
Greed overrides logic for enough people that these scams continue proving viable to launch.
5 Crucial Tips to Avoid ITP Copycats Who Will Emerge
Given the common scam cycle, here are 5 critical guidelines to avoid repeating mistakes:
1. Verify Founders & Management
Background checks provide clarity around who controls operations and decision-making. Both leadership experience and character matter regarding trust.
2. Review Compensation Breakdown
What revenue streams exist besides affiliate investments? How much focuses on recruitment versus sales? Pyramid schemes incentivize building downlines over customers.
3. Confirm Third Party Audits & Compliance
Valid entities want transparency around processes affecting stakeholder assets. Verify external audits certifying technological capabilities, trading data, and regulatory adherence.
4. Analyze Affiliate Incentives
Beware programs motivating aggressive promotion over truthful education. High commissions and rank advancement tied to downline building drives misinformation.
5. Don’t Ignore Obvious Red Flags
Use common sense. If leadership stays hidden, promised returns defy logic, regulation violations abound, support proves evasive…exercise caution.
No platform legally generates such easy income with so little risk. Any urging “insured profits” or similar guarantees should raise suspicions. Avoid emotional purchases.
In closing, ITP Technology indeed followed patterns of previous crypto scams. Telltale signs included exaggerated claims, regulatory noncompliance, opaque operations, and eventually – collapse.
Hopefully, investors learn lessons about adequate diligence moving forward. Study creator background, compensation design, third party auditing, and transparency around key claims.
And remember – if something appears too good to be true, it almost always proves exactly that. Proceed with extreme care.
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