Crowd1 keeps selling multiple ponzi packages to their network that are bundled with multiple Miggster memberships that are then expensed through the Miggster platform via EM1 for a commission which will slowly keep diminishing as Crowd1 inflates their "total subscribers" (not active subscribers).
This shifts the ponzi income into a different bucket where it comes back to the business preprocessed through a business different venture thus creating the image of legitimacy despite how this money was initially sourced.
Austrac.gov.au (government website) has an article about money layering. From here:
https://www.austrac.gov.au/business...nce-resources/money-laundering-australia-2011
This inabilty by EM1 to explain what members are signing up for if there's no active userbase is the concern raised in this article from The Market Herald, Hit Copper's own news publication:
https://themarketherald.com.au/the-...vations-of-its-150000-subscribers-2021-03-10/
Their members are being incentivised with package deals which award them 5-10x Miggster transactions per ponzi package in some cases. Why does one person need a dozen Miggster accounts when all you need is one to use the service? Doesn't matter as they didn't choose it it's just been handed to them by Crowd1 even if they have zero interest in using it (which is apparently from EM1's own figures that indicated barely 15% of their subscribers accessed the app once when they were at 150k subscribers).
Based on what info is available on the Crowd1/EM1 relationship it seems that all of this is done by Crowd1 however based on the ASX announcements it's obvious that until the money is expensed and redistributed back to Crowd1 the money is being held by EM1. This is all in their 4C's, half yearly and announcements talking about how much (gross) receipts they've banked.
It reeks. 3 years of big promises of breaking into the gaming market and facilitating game changing platforms and the peak of this is a HTML5 game platform whose primary use by the business that commissioned it (Crowd1) isn't even gaming but just a way to redistribute money.
Not clear to me how involved EM1 is in this besides holding they cash and returning it barring their %age, the announcements seem to indicate they just gave Crowd1 the tool and this is how it's being used. And I'm not lawyer to speak on what their obligations may or may not be when it comes down to governance and compliance with how this may or may not have to be dealt with or disclosed to regulators. Especially given how many borders this whole enterprise operates across (EM1 is registered in Australia but their only operating office is in South Africa, Crowd1/ICT/TIM (aka all part of the same company by Crowd1 directors) operates through a chain of Dubai/Madrid/Sweden)......
Nothing about this gives me the impression this company is dedicated to video gaming. And yeah people are making money off this business model, but look where the money is going and ask yourself if you see this as a sustanable business model given how ponzi schemes shut down, pocket all the money and rebrand so much. It's already started in Crowd1 with Johan and Renze from their board starting their first steps in that direction.
