Coop5050s website domain (coop5050.com) was first registered in 2018. The private registration was last updated on November 4th, 2020.
To suss out whos behind Coop5050 we have to turn to social media:
David T. Rosen first popped up on BehindMLMs radar in 2015, as founder of the PIE 24/7 pyramid scheme.
In late 2019 Rosen rebooted 50/50 Crowdfunding as CoopCrowd. That brings us to the late 2020 reboot launch of Coop5050.
David Rosen is believed to run his various scams from Ontario, Canada.
Alexa traffic analysis reveals Coop5050 recruitment is currently taking place in the US (71%) and Dominican Republic (22%).
Read on for a full review of Coop5050s MLM opportunity.
Coop5050 has no retailable products or services, with affiliates only able to market Coop5050 affiliate membership itself.
Coop5050s Compensation Plan
Coop5050 affiliates gift money to each other through eight-tiers of gifting payments.
Gifting payments in Coop5050 are tracked via a 2×2 matrix.
A 2×2 matrix places an affiliate at the top of a matrix, with two positions directly under them:
These two positions form the first level of the matrix. The second level of the matrix is generated by splitting these first two positions into another two positions each (4 positions).
Positions in the matrix are filled by position purchases, made by existing and newly recruited Coop5050 affiliates.
Funds used to purchase matrix positions are gifted as follows:
- $25 tier gift $25 and receive 50% of $25 gifted in across six positions ($75)
- $50 tier gift $50 and receive 50% of $50 gifted in across six positions ($150)
- $150 tier gift $150 and receive 50% of $150 gifted in across six positions ($450)
- $250 tier gift $250 and receive 50% of $250 gifted in across six positions ($750)
- $500 tier gift $500 and receive 50% of $500 gifted in across six positions ($1500)
- $1000 tier gift $1000 and receive 50% of $1000 gifted in across six positions ($3000)
- $2000 tier gift $2000 and receive 50% of $2000 gifted in across six positions ($6000)
- $4000 tier gift $4000 and receive 50% of $4000 gifted in across six positions ($12,000)
Cycling appears to happen automatically so presumably upon completing a matrix, the initial gifting payment is subtracted to generate a new same-tier position.
E.g. You receive $75 upon completing tier 1, $25 of which is used to fund a new tier 1 position.
Coop5050 affiliate membership is tied to a minimum $25 gifting payment.
Full participation in Coop5050 costs $7975.
Marketing copy on Coop5050s website suggests gifting payments might be monthly recurring.
Following the collapse of his CoopCrowd gifting scheme, David Rosen is back with a clone scam for 2021.
Coop5050 combines elements of gifting and Ponzi schemes.
The gifting element exists by way of new gifting payments being used to fund cycle payments.
You gift in, that money is paid to existing Coop5050 affiliates. You then receive gifting payments from Coop5050 affiliates recruited after you.
The Ponzi element exists by way of gifting payments being made on the expectation of a 300% ROI.
Gift $25 and receive $75. Gift $250 and receive $750 etc.
Seeing as 71% of website traffic to Coop5050 is coming from the US, this brings the scheme under the jurisdiction of the FTC and SEC.
Gifting schemes are illegal as per the FTC Act. Ponzi schemes (securities fraud) are illegal as pert the Securities and Exchange Act.
As with all MLM Ponzi gifting schemes, once affiliate recruitment dries up so too will new gifting payments (investment).
Being a matrix cycler, this will see Coop5050s matrices begin to stall. Unless recruitment of new participants continues forever (mathematically impossible), eventually enough matrices stall to trigger a collapse.
If you want evidence of this in practice, look no further than David Rosens previous scams.
Pie 24/7, Cooperative Crowdfunding, 50/50 Crowdfunding and CoopCrowd all collapsed with the majority of participants losing money.
Meanwhile Rosen, through preloaded admin positions, is the primary benefactor of each scam.
Coop5050, using the same matrix cycler gifting model as Rosens previous scams, wont end any differently.