FluxOn Club Review: FON token Ponzi points


FluxOn Membership operates within the cryptocurrency MLM area of interest. The corporate is headed up by co-founders Georgy Katsanov and Jorge Nieto.

On his LinkedIn profile, Georgy Katsanov (proper) refers to himself as a “non-public entrepreneur” with over seven years expertise.

Language-barriers made monitoring Katsanov’s MLM historical past troublesome. I used to be nevertheless capable of peg him to promotion of the TelexFree Ponzi scheme.

The above is a screenshot from the “OneCoin VN” group on VKontakte. The Georgy Katsanov profile has since been deleted.

A Georgy Katsanov from Portugal filed a TelexFree sufferer declare for $590.20.

The TelexFree Trustee disallowed the declare, on the premise Katsanov (proper) was a net-winner.

How a lot Katsanov stole from TelexFree victims is unknown.

On his LinkedIn profile Katsanov boasts about turning €30,000 to €2,000,000 in 4 years. TelexFree solely lasted two years so it’s unclear whether or not this declare is said.

I wasn’t capable of finding something concrete on Jorge Nieto (proper).

There’s a Jorge Nieto on Twitter who’s at the least aware of TelexFree, nevertheless I’m not 100% positive it’s the identical man:

Aside from LinkedIn profile hyperlinks (Nieto’s is damaged), FluxOn Membership itself supplies no info on its executives.

FluxOn Membership claims it’s registered in Tbilisi, Georgia. Georgy Katsanov’s LinkedIn profile claims FluxOn Membership relies out of Spain.

Katsanov himself lists his LinkedIn profile location as Lisbon, Portugal.

If Katsanov relies out of Portugal, that’s the place the truth is FluxOn Membership is being operated from. Any ties to Georgia and Spain seem to solely exist on paper.

Learn on for a full evaluation of FluxOn Membership’s MLM alternative.

FluxOn Membership’s Merchandise

FluxOn Membership has no retailable services or products, with associates solely capable of market FluxOn Membership affiliate membership itself.

FluxOn Membership’s Compensation Plan

FluxOn Membership associates spend money on FON tokens on the promise of marketed returns.

Shopping for FON tokens, you’re going to get your lifelong income from the corporate’s exercise.

No specifics are offered on FluxOn Membership’s web site.

FluxOn Membership Affiliate Ranks

There are ten affiliate ranks inside FluxOn Membership’s compensation plan.

Together with their respective qualification standards, they’re as follows:

  • Companion – make investments $100 and generate $200 in weaker binary crew facet quantity
  • Agent – make investments $250 and generate $2000 in downline funding quantity
  • Guide – make investments $500 and generate $10,000 in downline funding quantity
  • Supervisor – make investments $750 and generate $25,000 in downline funding quantity
  • Junior Supervisor – make investments $1500 and generate $75,000 in downline funding quantity
  • Supervisor – make investments $2500 and generate $200,000 in downline funding quantity
  • Administrator – make investments $10,000 and generate $1,000,000 in downline funding quantity
  • Director – make investments $25,000 and generate $2,000,000 in downline funding quantity
  • Common Director – make investments $50,000 and generate $5,000,000 in downline funding quantity

Notice that required quantity for

  • Companion and Agent is counted as much as 50% per unilevel crew leg
  • Guide to High Supervisor is counted as much as 40% on two unilevel legs and 20% from a 3rd
  • Administrator to Common Director is counted as much as 30% on three unilevel legs and 10% from a fourth

Referral Commissions

FluxOn Membership pays associates a 5% referral fee on funds invested by personally recruited associates.

Residual Commissions

FluxOn Membership pays residual commissions by way of a binary compensation construction.

A binary compensation construction locations an affiliate on the prime of a binary crew, cut up into two sides (left and proper):

The primary degree of the binary crew homes two positions. The second degree of the binary crew is generated by splitting these first two positions into one other two positions every (4 positions).

Subsequent ranges of the binary crew are generated as required, with every new degree housing twice as many positions because the earlier degree.

Positions within the binary crew are stuffed by way of direct and oblique recruitment of associates. Notice there isn’t any restrict to how deep a binary crew can develop.

On the finish of every day FluxOn Membership tallies up new funding quantity on each side of the binary crew.

Associates are paid a proportion of funds generated on their weaker binary crew facet, primarily based on rank:

  • Companion to Guide ranks obtain 5%
  • Supervisor and Junior Supervisor ranks obtain 8%
  • Supervisor to Common Director ranks obtain 10%

As soon as paid out on, weaker binary crew quantity is matched with the stronger facet after which flushed.

Any leftover quantity on the stronger binary crew facet is carried over.

Matching Bonus

FluxOn Membership pays a Matching Bonus by way of a unilevel compensation construction.

A unilevel compensation construction locations an affiliate on the prime of a unilevel crew, with each personally recruited affiliate positioned immediately below them (degree 1):

If any degree 1 associates recruit new associates, they’re positioned on degree 2 of the unique affiliate’s unilevel crew.

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.

FluxOn Membership caps the Matching Bonus at 5 unilevel crew ranges.

The Matching Bonus is paid out as a proportion of residual commissions earned throughout these 5 ranges as follows:

  • Supervisors obtain a 5% match on degree 1 (personally recruited associates)
  • Junior Managers obtain a 5% match on ranges 1 and a couple of
  • Managers obtain a 5% match on ranges 1 to three
  • High Managers obtain a 5% match on ranges 1 to 4
  • Directors obtain a 5% match on ranges 1 to five

Reinvestment Commissions

FluxOn Membership pays commissions on downline reinvestment utilizing the identical unilevel crew because the Matching Bonus.

Reinvestment commissions are capped at 9 unilevel crew ranges, primarily based on rank:

  • Companions earn 1% on ranges 1 to three
  • Brokers earn 1% on ranges 1 to three and a couple of% on ranges 4 to six
  • Consultants earn 1% on ranges 1 to three, 2% on ranges 4 to six and three% on degree 7
  • Supervisors earn 1% on ranges 1 to three, 2% on ranges 4 to six, 3% on degree 7 and 5% on degree 8
  • Junior Managers and better earn 1% on ranges 1 to three, 2% on ranges 4 to six, 3% on degree 7, 5% on degree 8 and seven% on degree 9

Rank Achievement Bonus

Beginning on the Agent rank, FluxOn Membership rewards associates with the next Rank Achievement Bonuses:

  • qualify as an Agent and obtain $100
  • qualify as a Guide and obtain $250
  • qualify as a Supervisor and obtain $500
  • qualify as a Junior Supervisor and obtain $2500
  • qualify as a Supervisor and obtain $5000
  • qualify as a High Supervisor and obtain $15,000
  • qualify as an Administrator and obtain $25,000
  • qualify as a Director and obtain $50,000
  • qualify as a Common Director and obtain $100,000

If a FluxOn Membership affiliate qualifies at Agent to Supervisor inside the following set time frames, the next further bonuses are paid out:

  • qualify as an Agent inside your first 30 days and obtain an extra $150
  • qualify as a Guide inside your first 60 days and obtain an extra $350
  • qualify as a Supervisor inside your first 90 days and obtain an extra $1500

FluxOn Pool Bonus

FluxOn takes 1% of company-wide funding quantity and locations it right into a bonus pool.

Junior Supervisor and better ranked associates obtain a share of the cut up pool as follows:

  • Junior Managers obtain a share in a 0.4% pool
  • Managers obtain a share in a 0.3% pool
  • High Managers obtain a share in a 0.2% pool
  • Administrator and better ranks obtain a share in a 0.1% pool

Becoming a member of FluxOn Membership

FluxOn Membership don’t element affiliate membership prices on their web site.

A minimal $100 funding is required to take part within the connected MLM alternative.

Full fee and bonus qualification requires an funding of at the least $50,000.

Conclusion

Create an ERC-20 shitcoin, persuade individuals handy over cash for it, pay returns in mentioned ERC-20 shitcoin… pay withdrawals till new funding runs out.

That’s just about all FluxOn Membership is.

The MLM facet of the enterprise is pure pyramid scheme. Nothing is marketed or offered to retail clients. You recruit, your recruits spend cash and also you get a reduce.

They recruit, you get a reduce of that and so and so forth. Once more, zero retail.

FluxOn Membership commits its funding fraud their FON token.

FON just isn’t publicly tradeable and though FluxOn Membership claims 1 FON is value $1, there’s actually nothing backing this declare.

FluxOn Membership claims it manages crypto property and

additionally provid(es) a variety of providers within the cryptocurrencies mining with the utilization of probably the most superior techniques and applied sciences.

The FluxOn firm deploys its Mining farms and Masternodes within the Georgian Free Industrial Zone (FTZ) and Xinjiang (Uyghur Autonomous area), that ensures advantages and loyalty to the corporate’s exercise by the federal government.

No proof of those exercise is offered. A minimum of nothing that counts for something.

Being a passive funding alternative, with the intention to function legally FluxOn Membership has to register itself with monetary regulators in each nation is solicits funding in.

Nowhere on FluxOn Membership’s web site or of their advertising and marketing materials do they point out they’ve carried out so.

Placing apart FluxOn Membership is working illegally for only a second, registering would require the corporate to offer audited monetary accounting reviews.

These reviews would affirm FluxOn Membership is definitely doing what it says it’s. That’s utilizing exterior income to pay associates.

The one purpose FluxOn Membership would choose to function illegally, is that if the corporate is the truth is not doing what it claims to be.

I can’t stress this sufficient, incorporation in Georgia and different dodgy jurisdictions just isn’t an alternative choice to securities registration. Neither is social media content material of any type.

Because it stands the one verifiable income coming into FluxOn Membership is new funding.

Utilizing new funding to pay FON token ROI withdrawals by way of an inner alternate makes FluxOn Membership a Ponzi scheme.

As with all MLM Ponzi schemes, as soon as affiliate recruitment dries up so too will new funding.

This may starve FluxOn Membership of ROI income, finally prompting a collapse.

The maths behind Ponzi schemes ensures that once they collapse, the vast majority of buyers lose cash.