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 thought to BehindMLM as a high 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 by way of a failed ICO exit-scam.
DexNet’s different founder Igor Botnari, seems to be a random crypto bro with the standard failed companies underneath his belt.
These embrace:
- FixOne – failed cryptocurrency trade, no web site site visitors
- ProfixOne Capital – web site disabled
- FixOne International – 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 site visitors
- Abloxx – failed shit token Ponzi promising 8% 1 / 4 for five years
- Toqunia – one other collapsed crypto scheme of some kind, 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 high sources of site visitors to DexNet’s .ONE area as Russia (30%), Ukraine (16%), Germany (13%), the UK (12%) and Moldova (11%).
Prime sources of site visitors to DexNet’s .INFO area over the identical interval are Russia (39%), Malaysia (22%), Germany (22%) and the UK (17%).
Prime sources of site 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.
As a result of 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 underneath the safety of Sheikh Majid Rashid Al Mualla.
BehindMLM’s tips for Dubai are:
- If somebody lives in Dubai and approaches you about an MLM alternative, they’re making an attempt 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 packing containers for $1499 retail. Associates pay $999.
The packing containers are bought in tether ($1 = 1 USDT).
DexNet’s Android packing containers are primarily used to mine XNET, an inhouse token DexNet created.
Customers obtain a reward in XNet tokens for making certain easy operation of DEX Node gadgets.
The extra DexNet android packing containers invested in and related 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 gadgets 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 price.
DexNet pays all commissions and bonuses in USDT.
DexNet’s Compensation Plan
DexNet’s compensation plan revolves across the sale of Android packing containers to retail prospects and recruited associates.
Notice 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 gathered weaker binary staff facet quantity
- Freedom 2 – generate $250,000 in gathered weaker binary staff facet quantity
- Freedom 3 – generate $500,000 in gathered weaker binary staff facet quantity
- Freedom 4 – generate $1,000,000 in gathered weaker binary staff facet quantity
- Freedom 5 – generate $3,000,000 in gathered weaker binary staff facet quantity
- Freedom 6 – generate $6,000,000 in gathered weaker binary staff facet quantity
- Freedom 7 – generate $10,000,000 in gathered weaker binary staff facet quantity
- Freedom 8 – generate $25,000,000 in gathered weaker binary staff facet quantity
- Freedom 9 – generate $50,000,000 in gathered weaker binary staff facet quantity
Referral Commissions
DexNet associates earn a 7% fee on Android packing containers offered to personally referred retail prospects and recruited associates.
Residual Commissions
DexNet pays residual commissions through a binary compensation construction.
A binary compensation construction locations an affiliate on the high of a binary staff, cut up into two sides (left and proper):
The primary degree of the binary staff homes two positions. The second degree of the binary staff is generated by splitting these first two positions into one other two positions every (4 positions).
Subsequent ranges of the binary staff are generated as required, with every new degree housing twice as many positions because the earlier degree.
Positions within the binary staff are stuffed through direct and oblique recruitment of associates. Notice there isn’t a restrict to how deep a binary staff can develop.
On the finish of every day DexNet tallies up new Android field gross sales income and subsequent affiliate $999 cost quantity.
Associates are paid 7% of latest quantity generated on their weaker binary staff facet.
Notice 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 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 underneath them (degree 1):
If any degree 1 associates recruit new associates, they’re positioned on degree 2 of the unique affiliate’s unilevel staff.
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 staff 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 packing containers.
The Token ROI match seems to be capped at an affiliate’s high 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 full variety of energetic Android field gadgets throughout their downline:
- as much as 1000 energetic Android packing containers = 3% ROI match price
- as much as 10,000 energetic Android packing containers = 2% ROI match price
- as much as 100,000 energetic Android packing containers = 1.5% ROI match price
- as much as 1,000,000 energetic Android packing containers = 1% ROI match price
- as much as 10,000,000 energetic Android packing containers = 0.5% ROI match price
Notice DexNet’s compensation documentation cites 1,000,000 packing containers for each the 1% and 0.5% match price. Given the x10 multiplier used for each different tier, I determine the 0.5% match price is 10 million packing containers.
Quick Begin Bonus
DexNet associates earn a $300 Quick Begin Bonus per affiliate recruited of their first month.
Notice 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.
Notice 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 packing containers to mine its personal shit token.
XNET is a BEP-20 token. BEP-20 tokens may be created in a couple of minutes at little to no value.
XNET particularly has no worth outdoors of DexNet itself.
Hooked up to the DexNet’s XNET funding scheme is a FileCoin ruse, which I feel is meant to signify exterior income being generated.
The issue is DexNet readily admits all it does is recycle new funding to pay withdrawals.
DexNet’s Android packing containers look like modified T95Z fashions. These may be had for underneath $18 every from AliExpress:
The gadgets are sometimes used as media gamers.
Even taking DexNet’s modifications into consideration (2 TB SSD, a wifi antenna and probably a display screen improve), at $1499 retail the packing containers are nonetheless massively overpriced.
This leaves DexNet associates paying $999, which remains to be massively overpriced.
DexNet associates put money into its Android packing containers to mine XNET. That is then dumped in a revenue pool, by way of 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 purpose 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 packing containers generate FileCoin by way of 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 brief, the 2TB SSD is plugged into the IPFS community and purportedly generates income for DexNet.
Hooked up 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 might imply DexNet’s MLM alternative is working as a pyramid scheme.
Collectively we’ve got suspected wire fraud, securities fraud and pyramid fraud violations. There’s additionally the potential of cash laundering.
All of that is in fact unlawful in Dubai however Dubai’s authorities flip a blind eye.
Outdoors 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 may starve DexNet of ROI income, finally prompting a collapse.
The maths behind Ponzi schemes ensures that once they collapse, the vast majority of contributors lose cash.