In this review we examine the MyFirstPlant investment program that is supposed to make you money on Cannabis.
What is My First Plant
MyFirstPlant is presented as a company that grows Cannabis plants for its customers and pays them the profits.
You can pay the company to grow the plants for you, and they will sell what is harvested, which is supposed to generate profits on your investment.
My First Plant does not publish specific ROI numbers on its website, but its affiliates claim that you will get a 40 – 50% return on your investment per year. Strangely enough, these returns are supposed to go on forever, you make the investment just once.
One outdoor plant costs 70 euros, one indoor plant 450 or 900 euros.
Now let’s answer the question whether MyFirstPlant is a legit investment opportunity.
MyFirstPlant red flags
Our research about My First Plant revealed several problems that every investor should know about. Here they are.
Links to a Ponzi scheme
We checked the background of the company MFP My First Plant GmbH that runs this program and we found a very interesting fact.
The majority owner and CEO of My First Plant is Mario Abraham who also was the CTO of the EXW Wallet scam. The EXW token basically was a Ponzi scheme that collapsed a few years ago and lost money to a lot of people.
This certainly is not a good start when the the owner and CEO of MyFirstPlant was recently involved in a Ponzi scam. But that is a fact that you should know.
Continuing on the note of pyramidal structures, MyFirstPlant obviously is a typical MLM. There is a sophisticated multi-level structure that will reward you nine levels deep on the sales made by people that you referred to the program.
Then there are multiple performance related pools that can increase your rewards. Last but not least, there are ranking rewards based on the turnover of your downline, you can even win a Mercedes…
Add to this the fact that you can’t join MyFirst Plant without a sponsor, and you have a very suspicious combination.
Don’t get us wrong, there are cases where MLM structures are used to promote legit products, but we’ve never seen a MLM structure used with a legit money-generating product.
Because there is a big difference here. If you have a tangible product, let’s say a beauty product, instead of spending money on intermediaries, you can use direct marketing to promote and sell the product.
But when you have a product that is supposed to passively generate you a substantial income, like MyFirstPlant supposedly does with its plants with a 50% ROI, it should sell by itself, you don’t need to pay people to promote it.
On Wall Street people would beg you to take their money should you be able to earn them a 50% yearly return in a legit way. 50% per year is a huge number in the real world.
Yet MyFirstPlant needed to build a pyramid for people to be willing to let them earn a passive income? Strange, isn’t it?
Impossible plants and suspicious returns
Another red flag we see with MyFirstPlant is in the plants that are supposed to earn you your returns. Because the material we have seen say that you buy a cannabis plant and it will earn you money basically forever, while there is a harvest every 120 days.
As we have already mentioned in the Juicy Fields review, we are no Cannabis experts, but as per our research a typical Cannabis plant lives one year and you have one harvest per plant, that is all.
Yet MyFirstPlant affiliates say that you will get your investment back in one year and then the plant will generate you a net profit in the following years. That does not seem to be supported by the reality of growing Cannabis.
And we already touched this, but 50% yearly is a huge number, especially for the Cannabis business that is not earning money to its investors, yearly returns on stocks are negative!
Where are the facilities?
My First Plant claims to be growing Cannabis plants in Switzerland, but the only supposed proof of that is a blurry photo in their presentation.
If they grow plants in Switzerland, they have to be registered as a company in Switzerland, they have to have facilities there.
But the company MFP My First Plant is not registered in Switzerland and it provides no proof about growing anything in any country.
If you give them your money to grow plants for you, they should provide you with proofs that they are actually doing with your money what they promised, shouldn’t they? So this is another red flag.
What about regulation?
The Juicy Fields case has shown that this business model of Cannabis growing for investors is an investment service that is subject to regulation. At least two major European financial regulators have warned about this fact.
So it is only fair to assume that MyFirstPlant has to follow the same rules and be treated as an investment service. But the company provides no information about how it meets the requirements set by laws in Austria and Switzerland for investment services.
Therefore we have to conclude that it is not being offered as a regulated investment service, which means that it probably will run into problems with financial regulators in countries where it is being offered.
MyFirstPlant review – Conclusion
In our review we have shown several red flags that are surrounding MyFirstPlant and that is why we believe that you should be extremely careful towards this investment program. You can always consult your national financial regulator about it, but the safe option is to stay away from MyFirstPlant.
When investing your money, you should stick to regulated companies. And you should always make sure that you understand the risks and that you are investing only money that you can afford to lose.