According to VietNamNet reporters' research, recently, a blockchain project called MetaHub Finance has appeared on social networks and Telegram.

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MetaHub Finance organizes many seminars and workshops in Vietnam. Photo: PV

Accordingly, MetaHub Finance promotes itself as a project of Auralink Labs Pte. Ltd (UEA No. 202332656D) located at 33A Pagoda in Singapore, operating in the field of blockchain technology and applying AI technology to create, focusing on building an affiliate marketing platform, combining tasks so that members can receive rewards from advertising partners.

The project's mechanism is to attract advertisers and advertising partners on the system called decentralized linked consumption (DAC) of this unit. When users view ads and complete tasks, they will receive MEN (the project's virtual currency). The company also claims to provide products such as the MetaID identification system, anti-bot and fraud solution (BMAS), as well as investment activities through NFT and MEN virtual currency.

This project also organized many seminars and talks in Vietnam (all conducted by Vietnamese people) to call on people to invest in MEN and promised profits of up to 200%/year. Notably, the majority of participants in these seminars were elderly people.

To create trust for investors, this project has placed advertisements on a number of media agencies in Vietnam, and also promoted the seminars it organized under the sponsorship of large technology corporations such as Microsoft, Google or Amazon Web Service.

MetaHub Finance also runs many ads on Facebook, constantly calling for people to invest in Telegram groups.

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At seminars and workshops, MetaHub uses many logos of famous technology companies to create trust for investors. Photo: PV

To clarify the legality of the project as well as warn investors in Vietnam, VietNamNet reporters contacted the Vietnam Blockchain Association (VBA) for analysis of this project.

In a response letter sent to VietNamNet reporter, Mr. Tran Huyen Dinh, Vice President of Vietnam Blockchain Association, Head of ChainTracer Project (non-profit blockchain tracing project - PV), said that through the inspection and analysis process, VBA found that the MetaHub Finance project has many suspicious signs of being a multi-level capital mobilization model through the sale of virtual currency/NFT.

Specifically, MetaHub Finance does not focus on product or service development, but instead focuses on calling for investment from new members to expand the system. Investors are required to buy NFT investment positions with a minimum value of 100 USDT (a currency with the equivalent value of USD on the blockchain network), then convert it into MEN for staking (a form of savings on the blockchain network) with the promise of profits up to 200%/year in MEN. Buying with USDT and paying rewards with MEN confuses investors.

According to the advertisement, new members have many ways to earn money from the MetaHub Finance network, including: Viewing ads of businesses, accumulating MEN to earn interest... However, currently in the project's closed groups (mainly on Telegram), the main source of income is based on recruiting new members through the multi-level marketing system (MLM).

Specifically, agents will receive commissions based on the number of subordinates they recruit. This structure extends up to 20 levels, with the total commission received reaching up to 100% from the accumulation of MEN of subordinate affiliates. This creates a hierarchical model, in which the income of the upper levels depends entirely on the ability to recruit new people and expand the network; instead of focusing on the quality of products and services as originally described.

Mr. Tran Huyen Dinh noted that multi-level models with more than 5 levels are potentially risky and more than 7 levels are considered signs of a ponzi scam.

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Many seniors participate in MetaHub's investment call seminars. Photo: PV

The VBA Association also outlines potential risks for investors when participating in MetaHub Finance.

Specifically, the risk of participating in a multi-level system: There are many ways to participate in Metahub's system, but the most advertised is to direct people to buy NFT-Pass (VIP membership), with each NFT worth at least 100 USD (or equivalent cryptocurrency USDT). Upline members will receive commissions from new members buying this NFT. If more investors cannot be recruited, the system will likely falter and collapse.

Risks from the MEN virtual currency that could collapse: The amount of MEN generated each day (from production, savings, etc.) is not commensurate with demand; when supply exceeds demand too much, the value of MEN is completely likely to collapse and the price of this virtual currency could approach 0.

Low MEN liquidity: According to MetaHub's whitepaper, 77,000 NFTs were sold to create MEN at a value of $100/NFT, equivalent to $7.7 million in revenue. But currently, MEN is only traded on one decentralized exchange, Uniswap, with a liquidity pool of about $300,000.

Legal risks: MetaHub Finance claims to be headquartered in Singapore at 33A Pagoda Street 059192. However, there are 107 registered companies at this address, indicating that this is a registered mailing address for the company and not a real office. The promotional field of Auralink Lab Pte is AI and blockchain, but in fact the industry code registered on the Singapore government's website is software and application development. The fact that a Singaporean company has such a structure and does not have a licensed Vietnamese representative shows a very high legal risk for Vietnamese people when purchasing cross-border products from MetaHub Finance. Not to mention that raising capital through this token form is a sign of violating Vietnamese law and is not protected by law.

With the above information, VBA recommends that investors who are Vietnamese citizens should be cautious and should not participate in MetaHub Finance.