An unstable economic situation can definitely prompt one to look for places to invest their earnings. Forex and crypto trading seem to be locations where many seek to either double their capital or earn some extra profits. The truth is that lots of online trading platforms have come and gone. Yes, many fell victim and took the fall. So it’s very important that you are aware of where exactly you put your money and what they do with it. Trust us, there are lots of MLM platforms out there disguised as forex brokers. Lots of these platforms are nothing but prey.
In this article, we are going to reveal all you need to know about the Novatech hedge fund, how to invest in it, and the risks involved.
What is Novatech hedge fund?
Novatech is a hedge fund, forex, and crypto broker firm offering different trading software and services. The company offices are located in St. Vincent and Granada. They also claim to have office locations in Florida and Estonia, according to their website. There are actually lots of discrepancies about their actual location, which raises serious concern. Novatech hedge fund is owned and managed by Cynthia Petion (CEO), Eddy Petion (COO), and Ricardo Roy (CTO).
The company is a subsidiary of Novapay LLc and was founded in 2019. The aim of the company is to empower people to attain financial freedom by introducing the platform to those around them so they can benefit as well.
Since the company is based on sharing opportunities, people are using the platform as another MLM or Ponzi scheme. The company refuted those claims and made it known that it was not one. However, they offer such a lucrative amount as compensation for members that recruit new members, which further suggests they are an MLM.
Is Novatech Hedge Fund a scam?
Novatech really has a brilliant mission, which is to promote circulated financial freedom, but here is the question: are they actually legit?
Its now news that lots of online platforms have come and gone and are wading off millions to billions of dollars of investor assets. When FTX Us and FTX Trading came, they brought nice offers too, but what happens in the long run? They all crashed, and investors too fell.
This is not to discredit Novatech hedge fund, its crypto or forex trading, but honestly, the platform seems too good to be true. Making withdrawals weekly and earning a high ROI might seem okay at first, but as a matter of fact, it can lure millions to the platform. It’s obvious that they are only waiting for the right time to close down.
How can a hedge fund company work exactly like an MLM? All their hedge fund management works exactly like that of the Ponzi platform. You deposit and withdraw very high profits weekly; even tech companies with the fastest stock appreciation can earn you such a high profit, as Novatech promises.
Another thing that suggests this platform is a scam is the fact that the management has a history of financial crime. In 2022, the company’s CEO and COO, Cynthia and Eddie, were charged with security fraud in Washington. Others have gone into hiding ever since. A hearing by a court in Ontario took place on September 28, 2023, against the company and its management, which was held via live video, but they refused to show up. This further proves whether the Novatech hedge fund is legit or not.
Some customers may argue with this review because the platform gives you access to your entire capital. But is this the correct assertion? If you, as a customer, have been making withdrawals without any issue whatsoever, then you can say that we are being biased in our judgment of Novatech.
What about we look at the different red flags of the Novatech hedge fund?
Novatech Hedge Funds Red Flags
Novatech hedge fund offers you the opportunity to earn high interest rates that look somewhat unrealistic. But this does not mean that the company is entirely a scam. However, these are only mere promises to probably attract investors. The company may have had good notions initially but got confused in their marketing ideas, which is why they use this high-interest nonsense to attract prospective investors.
Again, the high compensation for their affiliates is too good to be true, and it is no different from a Ponzi platform. The compensation only works if users get enough numbers, so it’s not meaningful at all.
Let’s put it into perspective first.
Members can use multiple numbers to share opportunities, but a video once explained that using a specific rate of ROI using thecalculatorsite.com
In the video, there is a 3% average weekly return that is compounded weekly for 5 years. There is also a video where 3% was also used for 3 years, and it gave the same amount.
When you calculate those figures using calculatorsite.com, they increase from a meager $1000 to $2,176,097 in 5 years. While the 3% interest is not bad, when you compound that weekly, you can see the bad omen. You did see the annual interest at 365.089% per year.
Which investment stock, real estate, or crypto offer such 365% interest in a year? Most of the online calculators may not even allow you to calculate it like that.
We tried calculating the same annual rate using the investor.gov compound interest calculator, and it gave something else. The interest was below 100%, which is not even normal to start with.
I tried using other calculators and thecalculatorsite.com, and it says the same as the one from Novatech. Here is another question: how does the Novatech hedge fund get such a high annual ROI of 365%? How do their investors gain a higher percentage annually than the two biggest investors in history, Peter Lynch and Warren Buffet?
Between 1977 and 1990, Peter achieved an average of only 29% annually, which is extremely low compared to what Novatech hedge fund investors are said to get. On the other hand, Bashire Hathaway Holdings, which is Warren’s company, earned an annual average of 20.3% in 30 years.
Isn’t this debatable? Warren and Peter are famous for their investment success, but how come Novatech investors are bound to do more than these two great investors in world history?
Both men are not even investing in quick-money investments like forex or crypto, but in conventional securities. Plus, they are both investors and not traders like Novatech members. Online traders often make profits from volatility. Investors, on the other hand, make money through compound interest and their companies’ growth success.
Going by Novatech Edge Funds’ 365% ROI, your $1000 becomes $10 million in just 5 years, and if you keep holding on for 9 years, you have become a billionaire, and by the tenth year, you are already at $4.7 billion.
In 13 years, you are going to be worth $500 billion, meaning you will become the richest person on the planet. In just 14 years, your $1000 would have become $2 trillion, which is even bigger than some of the richest countries in the world’s GDP. Isn’t that beautiful nonsense to you? Think about it.
-Fake Earnings
Now that we have estimated $1000 to become $2 trillion in 14 years, it is now obvious that the platform is a scam. You are free to dispute, as this is just our own opinion; you can have a different opinion.
Based on their published earnings from January to December, their average monthly ROI for investors is 13% and 333.4% for annuals. This is like 16x Warren Buffet’s Barkshire Hathaway holdings, which is recognized as the worst-biggest investor.
If you do not estimate and observe the figures closely again and again, you will not rethink the fact that this platform is a scam disguised as a hedge fund, crypto, and forex broker. If this is not a scam or some catfish scheme, then it is more like winning a lottery ticket.
-They do not include fees in their information
This is something that seems so obscure about the platform. They only talk about the 3% weekly interest. You can keep calculating the millions you can make with this platform, but the long run will shock you. Novatech hedge fund charges 30% of your profit, something you are only informed of after you have already invested.
Charging a 30% profit rate as a FX, crypto, and hedge fund management platform does look even better, and it further backs our claim and screams FRAUD.
-Not registered with S.E.C.
Many reviews have shown that this platform is not even registered with the SEC, which is a regulatory body for forex trading. S.E.C. defines a broker as a person who engages in the business of effecting transactions in securities for the account of others. Novatech fails almost all S.E.C. rules as regards being a broker.
-No real company’s address
Novatech business office has a lot of discrepancies. According to their website, Suite 305, Grifith Corporate Center, Beachmount Kingstown, GE VC120 Saint Vincent and the Grenadines, is their office address. They also claim to own offices in Florida and Estonia.
However, Griffith Corporate Center has said Novatech is not their tenant. So what other information do you need to know?
