last year i joined a company, but it went broke this year

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i joined a company last year called shisu tech(china),it was a small company with big ambition, claiming to build the largest b2b e-commerce website in the world. how can it achieve the goal? first of all, it requires that every member in the company must give an entrance fee 310 RMB to enter the company. the reason is very simple, everyone has to be trained to equipped with knowledge of the internet and e-commerce, so it's called trainning fee. and the previous members must teach the follow up members, and one member is to collect three students(members) to complete his task. it sounds something like mlm, yes, it follows the principle of mlm. but as the time went on, it's getting increasingly difficult to collect people and they have no startup money.i thought, it was bound to fail,and left the company without regret. and as i predicted, it failed. what are reasons? anyone who can guess the answer?