L7Dex fails to offer possession or govt data on both of its web sites.
In reality, a minimum of so far as I can inform, L7Dex’s web sites are nothing greater than a gateway to the corporate’s app.
L7Dex operates from two identified web site domains:
- l7dex.com – privately registered on Might twenty fifth, 2023
- l7dex.finance – privately registered on June thirtieth, 2023
On YouTube L7Dex advertising and marketing movies are hosted by somebody going by “Nick”:
Nick (assumed to be an alias) speaks Chinese language. This means Chinese language admins are behind L7Dex (presumably Singapore).
As to who’s being focused, SimilarWeb presently tracks high sources of visitors to L7Dex’s web sites as Germany (33percent0, Italy (13%), the Netherlands (12%), Hungary (11%) and the UK (9%).
This tracks with somebody with a German accent presenting L7Dex’s official English presentation on YouTube.
As all the time, if an MLM firm is just not overtly upfront about who’s working or owns it, suppose lengthy and arduous about becoming a member of and/or handing over any cash.
L7Dex’s Merchandise
L7Dex has no retailable services or products.
Associates are solely capable of market L7Dex affiliate membership itself.
L7Dex’s Compensation Plan
L7Dex associates make investments 100 tether (USDT) or extra. That is finished on the promise of 1.5% a day.
Word that L7Dex pays out returns via its LUSD and LSD shit tokens. These should be transformed again into USDT inside L7Dex itself.
Additionally observe that how lengthy an L7Dex affiliate doesn’t withdraw for determines a penalty charge:
- withdraw inside 10 days = 30% charge
- withdraw inside 30 days = 25% charge
- withdraw inside 90 days = 20% charge
- withdraw inside 180 days = 15% charge
- withdraw inside 360 days = 10% charge
The MLM facet of L7Dex pays on recruitment of affiliate traders.
L7Dex Affiliate Ranks
There are six affiliate ranks inside L7Dex’s compensation plan.
Together with their respective qualification standards, they’re as follows:
- V1 – generate and keep 20,000 LUSD/LSD in downline month-to-month returns quantity (excludes largest unilevel staff leg by funding quantity)
- V2 – have one V1 or greater ranked affiliate in two separate unilevel staff legs
- V3 – have one V2 or greater ranked affiliate in two separate unilevel staff legs
- V4 – have one V3 or greater ranked affiliate in three separate unilevel staff legs
- V5 – have one V4 or greater ranked affiliate in three separate unilevel staff legs
- Accomplice – have one V5 or greater ranked affiliate in three separate unilevel staff legs
ROI Match
L7Dex pays a ROI match through a unilevel compensation construction.
A unilevel compensation construction locations an affiliate on the high of a unilevel staff, with each personally recruited affiliate positioned immediately beneath them (stage 1):
If any stage 1 associates recruit new associates, they’re positioned on stage 2 of the unique affiliate’s unilevel staff.
If any stage 2 associates recruit new associates, they’re positioned on stage 3 and so forth and so forth down a theoretical infinite variety of ranges.
L7Dex pays the ROI Match up two upline ranges and down two downline ranges:
- a 5% match is paid on returns paid two upline ranges
- a ten% match is paid on returns paid two downline ranges
The catch is the ROI Match is proscribed to how a lot an affiliate themselves has invested.
E.g. An affiliate invests 100 USDT and their upline (the affiliate who recruited them) invests 1000 USDT.
As an alternative of receiving 5% of 1000 USDT, the affiliate solely receives a 5% match on 100 USDT.
This restrict is utilized to each upline and downline funding.
Residual ROI Match
L7Dex pays a Residual ROI Match on downline ROI payouts primarily based on rank:
- V1 ranked associates earn a ten% match
- V2 ranked associates earn a 20% match
- V3 ranked associates earn a 30% match
- V4 ranked associates earn a 40% match
- V5 ranked associates earn a 50% match
- Accomplice ranked associates earn a 50% match plus a share in 10% of company-wide ROI payouts
Word that the Residual ROI Match is coded. E.g. if a V4 ranked affiliate has a V2 ranked affiliate of their downline, they’ll solely earn a 20% match on the V2 ranked associates ROI payouts (40% – 20%).
Similar or greater ranked associates pay out a decreased Residual ROI Match, and solely throughout the primary three ranges of the unilevel staff:
- 10% match on stage 1 (personally recruited associates)
- 5% match on ranges 2 and three
Becoming a member of L7Dex
L7Dex affiliate membership is free.
Full participation within the connected revenue alternative requires a minimal 100 USDT funding.
L7Dex Conclusion
L7Dex pitches itself as a “decentralized perpetual contract buying and selling platform”. It is a fancy approach of claiming L7Dex is an MLM crypto Ponzi scheme”.
L7Dex’s Ponzi scheme is straightforward: They use the staking mannequin and generate LUSD and LSD shit tokens out of skinny air.
When withdrawals exceed new funding, the interior conversion performance to USDT is turned off and L7Dex collapses.
L7Dex pretending to be decentralized is fun, when very clearly it’s being run by Chinese language scammers out of Asia. Ditto L7Dex’s representations it’s engaged in buying and selling.
There is no such thing as a verifiable proof offered that exhibits L7Dex pays withdrawals with USDT generated through buying and selling. This declare additionally fails the Ponzi logic take a look at.
If L7Dex was engaged in buying and selling, such that they will maintain 1.5% a day plus a 50% match via a compensation plan – what do they want your cash for?
There clearly isn’t any buying and selling. The one verifiable income coming into L7Dex is new USDT funding.
Recycling this new funding to pay withdrawals is what makes L7Dex a Ponzi scheme.
As with all MLM Ponzi schemes, as soon as affiliate recruitment dries up so too will new funding.
It will starve L7Dex of ROI income, ultimately prompting a collapse.
The mathematics behind Ponzi schemes ensures that after they collapse, nearly all of individuals lose cash.