DexNet operates within the cryptocurrency MLM area of interest.
The corporate is headed up by founder and CEO Aleksey Kedo.
Kedo, who seems to be a Russian nationwide, is understood to BehindMLM as a prime promoter of Kairos Applied sciences Ponzi scheme.
Following a number of regulatory fraud warnings and regulatory enforcement actions throughout Europe, Kairos Applied sciences collapsed in September 2016.
Authorities in Belarus made thirty Kairos Applied sciences associated arrests later that very same month.
Nonetheless what was left of Kairos Applied sciences limped alongside.
In January 2017 Turkish authorities concluded Kairos Applied sciences was an unlawful pyramid scheme. Lastly in January 2018, what was then left of Kairos Applied sciences was disposed via a failed ICO exit-scam.
DexNet’s different founder Igor Botnari, seems to be a random crypto bro with the same old failed companies beneath his belt.
These embrace:
- FixOne – failed cryptocurrency alternate, no web site visitors
- ProfixOne Capital – web site disabled
- FixOne World – failed buying and selling scheme, web site disabled
- One Token – failed crypto funding Ponzi providing 65% yearly
- Teroxx – failed crypto buying and selling scheme, no web site visitors
- Abloxx – failed shit token Ponzi promising 8% 1 / 4 for five years
- Toqunia – one other collapsed crypto scheme of some type, web site deserted years in the past
DexNet operates from three recognized web site domains:
- dexnet.one – privately registered on February third, 2023
- dexnet.data – privately registered on June ninth, 2023
- dexfreedom.com – registered by Seychelles shell firm Options Innovation on March sixteenth, 2023
As of February 2024, SimilarWeb tracked prime sources of visitors to DexNet’s .ONE area as Russia (30%), Ukraine (16%), Germany (13%), the UK (12%) and Moldova (11%).
High sources of visitors to DexNet’s .INFO area over the identical interval are Russia (39%), Malaysia (22%), Germany (22%) and the UK (17%).
High sources of visitors to DexNet’s .COM area over the identical interval are Latvia (50%), Russia (40%), Germany (6%) and Ukraine (4%).
On its .ONE area, DexNet represents it operates as “Dexnet Data Know-how CO” out of Dubai.
Because of the proliferation of scams and failure to implement securities fraud regulation, BehindMLM ranks Dubai because the MLM crime capital of the world.
DexNet’s web site particularly suggests it’s beneath the safety of Sheikh Majid Rashid Al Mualla.
BehindMLM’s pointers for Dubai are:
- If somebody lives in Dubai and approaches you about an MLM alternative, they’re attempting to rip-off you.
- If an MLM firm is predicated out of or represents it has ties to Dubai, it’s a rip-off.
If you wish to know particularly how this is applicable to DexNet, learn on for a full evaluate.
DexNet’s Merchandise
DexNet sells Android bins for $1499 retail. Associates pay $999.
The bins are bought in tether ($1 = 1 USDT).
DexNet’s Android bins are primarily used to mine XNET, an inhouse token DexNet created.
Customers obtain a reward in XNet tokens for guaranteeing easy operation of DEX Node units.
The extra DexNet android bins invested in and linked to the web, the upper the XNET ROI paid out (click on to enlarge):
As an alternative of cashing out XNET, DexNet has buyers place them right into a “Revenue Sharing Pool”. The minimal quantity that may be invested into the Revenue Sharing Pool is 500,000 XNET.
The Revenue Sharing Pool is purportedly made up of 10% of DexNet Android purchases, paying a passive return to buyers so long as new units proceed to be invested into.
Additionally observe that each 150,000 invested XNET into the Revenue Sharing Pool doubles a DexNet retail buyer’s or affiliate’s Android field XNET ROI fee.
DexNet pays all commissions and bonuses in USDT.
DexNet’s Compensation Plan
DexNet’s compensation plan revolves across the sale of Android bins to retail clients and recruited associates.
Word that DexNet’s compensation documentation suggests associates can earn as much as 500% on their $999 Android Field buy ($4995).
The bundle is legitimate till you earn x5. Then reactivation (buy of a brand new bundle) takes place with out buying new gear.
As above, associates pay $999 per $4995 earned however don’t obtain a brand new Android field after their preliminary funding.
DexNet Affiliate Ranks
There are ten affiliate ranks inside DexNet’s compensation plan.
Together with their respective qualification standards, they’re as follows:
- Freedom 1 – generate $50,000 in collected weaker binary workforce aspect quantity
- Freedom 2 – generate $250,000 in collected weaker binary workforce aspect quantity
- Freedom 3 – generate $500,000 in collected weaker binary workforce aspect quantity
- Freedom 4 – generate $1,000,000 in collected weaker binary workforce aspect quantity
- Freedom 5 – generate $3,000,000 in collected weaker binary workforce aspect quantity
- Freedom 6 – generate $6,000,000 in collected weaker binary workforce aspect quantity
- Freedom 7 – generate $10,000,000 in collected weaker binary workforce aspect quantity
- Freedom 8 – generate $25,000,000 in collected weaker binary workforce aspect quantity
- Freedom 9 – generate $50,000,000 in collected weaker binary workforce aspect quantity
Referral Commissions
DexNet associates earn a 7% fee on Android bins bought to personally referred retail clients and recruited associates.
Residual Commissions
DexNet pays residual commissions by way of a binary compensation construction.
A binary compensation construction locations an affiliate on the prime of a binary workforce, break up into two sides (left and proper):
The primary degree of the binary workforce homes two positions. The second degree of the binary workforce is generated by splitting these first two positions into one other two positions every (4 positions).
Subsequent ranges of the binary workforce are generated as required, with every new degree housing twice as many positions because the earlier degree.
Positions within the binary workforce are crammed by way of direct and oblique recruitment of associates. Word there isn’t any restrict to how deep a binary workforce can develop.
On the finish of every day DexNet tallies up new Android field gross sales income and subsequent affiliate $999 fee quantity.
Associates are paid 7% of latest quantity generated on their weaker binary workforce aspect.
Word that
- DexNet associates should recruit two associates to qualify for residual commissions; and
- residual commissions are capped at $15,000 a day
Residual Commissions Matching Bonus
DexNet pays a Matching Bonus by way of a unilevel compensation construction.
A unilevel compensation construction locations an affiliate on the prime of a unilevel workforce, with each personally recruited affiliate positioned immediately beneath them (degree 1):
If any degree 1 associates recruit new associates, they’re positioned on degree 2 of the unique affiliate’s unilevel workforce.
If any degree 2 associates recruit new associates, they’re positioned on degree 3 and so forth and so forth down a theoretical infinite variety of ranges.
DexNet caps the Matching Bonus at ten unilevel workforce ranges.
The Matching Bonus is paid as 1% of earned residual commissions by downline associates throughout these ten ranges.
Token ROI Matching Bonus
DexNet pays a match on XNET token returns generated by downline Android bins.
The Token ROI match seems to be capped at an affiliate’s prime ten recruitment legs (the legs receiving the best XNET token returns).
- 1 Android field in downline = XNET token ROI match from one recruitment leg
- 1 retail Android field sale in downline or three downline purchases = XNET token ROI match from two recruitment legs
- 10 Android field gross sales in downline = XNET token ROI match from three recruitment legs
- 30 Android field gross sales in downline = XNET token ROI match from 4 recruitment legs
- 60 Android field gross sales in downline = XNET token ROI match from 5 recruitment legs
- 150 Android field gross sales in downline = XNET token ROI match from six recruitment legs
- 200 and fifty Android field gross sales in downline = XNET token ROI match from seven recruitment legs
- 500 Android field gross sales in downline = XNET token ROI match from eight recruitment legs
- 1000 Android field gross sales in downline = XNET token ROI match from 9 recruitment legs
- 1500 hundred Android field gross sales in downline = XNET token ROI match from ten recruitment legs
Utilizing the above standards, DexNet pays the XNET token ROI match based mostly on the entire variety of energetic Android field units throughout their downline:
- as much as 1000 energetic Android bins = 3% ROI match fee
- as much as 10,000 energetic Android bins = 2% ROI match fee
- as much as 100,000 energetic Android bins = 1.5% ROI match fee
- as much as 1,000,000 energetic Android bins = 1% ROI match fee
- as much as 10,000,000 energetic Android bins = 0.5% ROI match fee
Word DexNet’s compensation documentation cites 1,000,000 bins for each the 1% and 0.5% match fee. Given the x10 multiplier used for each different tier, I determine the 0.5% match fee is 10 million bins.
Quick Begin Bonus
DexNet associates earn a $300 Quick Begin Bonus per affiliate recruited of their first month.
Word the Quick Begin Bonus is capped at recruitment of six associates ($1500).
Bonus Swimming pools
Freedom 9 and Freedom 10 ranked associates qualify for shares in two Bonus Swimming pools.
Every Bonus Pool is made up of 1% of DexNet’s company-wide income.
The 2 Bonus Swimming pools correspond with the ranks Freedom 9 and Freedom 10 respectively.
Rank Achievement Bonus
DexNet rewards associates for qualifying at Freedom 1 and better with the next one-time Rank Achievement Bonuses:
- qualify at Freedom 1 and obtain an iPhone $1200
- qualify at Freedom 2 and obtain $2500
- qualify at Freedom 3 and obtain $5000
- qualify at Freedom 4 and obtain $15,000
- qualify at Freedom 5 and obtain $50,000
- qualify at Freedom 6 and obtain $100,000
- qualify at Freedom 7 and obtain $200,000
- qualify at Freedom 8 and obtain $500,000
Becoming a member of DexNet
DexNet affiliate membership is tied to a $999 Android field funding.
DexNet’s compensation documentation suggests for each $4995 earned in commissions, $999 should be paid to proceed incomes.
Word that no Android field is included with subsequent $999 DexNet affiliate payment funds.
Additionally observe that whereas USD quantities are cited, DexNet operates in tether (USDT).
DexNet Conclusion
DexNet’s fundamental enterprise mannequin is promoting grossly overpriced Android bins to mine its personal shit token.
XNET is a BEP-20 token. BEP-20 tokens could be created in a couple of minutes at little to no value.
XNET particularly has no worth exterior of DexNet itself.
Connected to the DexNet’s XNET funding scheme is a FileCoin ruse, which I believe is meant to symbolize exterior income being generated.
The issue is DexNet readily admits all it does is recycle new funding to pay withdrawals.
DexNet’s Android bins seem like modified T95Z fashions. These could be had for beneath $18 every from AliExpress:
The units are sometimes used as media gamers.
Even taking DexNet’s modifications into consideration (2 TB SSD, a wifi antenna and probably a display improve), at $1499 retail the bins are nonetheless massively overpriced.
This leaves DexNet associates paying $999, which remains to be massively overpriced.
DexNet associates put money into its Android bins to mine XNET. That is then dumped in a revenue pool, via which a passive return is paid – purportedly funded by 10% of company-wide funding.
This constitutes a securities providing. The admitted recycling of invested funds to pay revenue pool withdrawals moreover constitutes a Ponzi scheme.
That is greatest illustrated by DexNet requiring associates to reinvest $999 every time they earn $4995. There’s no motive for this payment (which doesn’t even embrace one other Android field), aside from to scale back cash leaving DexNet.
DexNet additionally claims its Android bins generate FileCoin via the IPFS community.
As a fundamental protocol for information switch between Dex-nodes is used expertise IPFS in its {hardware} implementation disadvantaged of its disadvantages.
Lengthy story quick, the 2TB SSD is plugged into the IPFS community and purportedly generates income for DexNet.
Connected to that is DexNet’s MLM alternative. Given the $1499 DexNet Android field retail price ticket, it’s probably the vast majority of new income is coming from DexNet associates.
This may imply DexNet’s MLM alternative is working as a pyramid scheme.
Collectively we now have suspected wire fraud, securities fraud and pyramid fraud violations. There’s additionally the opportunity of cash laundering.
All of that is after all unlawful in Dubai however Dubai’s authorities flip a blind eye.
Exterior of the UAE DexNet is topic to securities, monetary and shopper fraud regulation.
As with all MLM Ponzi schemes, as soon as affiliate recruitment dries up so too will new funding.
This can starve DexNet of ROI income, finally prompting a collapse.
The maths behind Ponzi schemes ensures that once they collapse, the vast majority of individuals lose cash.