There is no information on the BitcoinEX website indicating who owns or runs the business.

The BitcoinEX website domain (“bitcoinex.club”) was privately registered on August 1st, 2016.

The default language of the BitcoinEX website is Spanish. Alexa also estimate that Spain is the largest source of traffic to the BitcoinEX website (30%).

Given this, it’s a good bet that whoever is running BitcoinEX is likely based out Spain as well.

As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.

The BitcoinEx Product Line

BitcoinEx has no retailable products or services, with affiliates only able to market BitcoinEX affiliate membership itself.

Bundled with BitcoinEX affiliate membership is access to an online marketing course titled “Human Empowerment University”.

Details of who is behind the Human Empowerment University course are not provided on the BitcoinEX website.

The BitcoinEX Compensation Plan

BitcoinEx affiliates sign up and invest in one of three offered packages. Commissions are paid when they recruit others who do the same.

Signing up as a BitcoinEX affiliate costs $50. BitcoinEX then offer investment in three affiliate packages:

  • Bronze – $250
  • Silver – $500
  • Gold – $1000

Package ROIs

BitcoinEX advertise a 150 day ROI on package investment:

  • Bronze – $1000 (may withdraw at $500)
  • Silver – $3000 (may withdraw at $1000)
  • Gold – $4000 (may withdraw at $4000)

Once a package ROI reaches the withdrawal amount, an affiliate can either cash out (cancelling the package) or continue to earn to the full ROI amount (150 days).

Direct Recruitment Commissions

BitcoinEX affiliates are paid $5 out of the $50 newly recruited affiliates pay to join the company.

Residual Recruitment Commissions (unilevel)

BitcoinEX’s unilevel residual commissions are paid out via a unilevel compensation structure.

A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):

If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.

If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.

BitcoinEX cap payable unilevel levels at four, with commissions paid out as a percentage of funds newly recruited affiliates invest in packages:

  • level 1 (personally recruited affiliates) – 10%
  • level 2 – 5%
  • level 3 – 3%
  • level 4 – 2%

Residual Recruitment Commissions (matrix)

BitCoinEX’s matrix residual commissions are paid out via a 2×13 matrix.

A 2×13 matrix places a BitcoinEX affiliate at the top of a matrix, with two positions directly under them:

These two positions form the first level of the matrix. The second level of the matrix is generated by splitting each of these two positions into another two positions each (4 positions).

Subsequent levels of the matrix are generated in the same manner (up to thirteen levels), with each new matrix level housing twice as many positions as the previous level.

A complete 2×12 matrix houses 16,384 positions, with positions filled via direct and indirect recruitment of new BitcoinEX affiliates.

A BitcoinEX affiliate earns 1% on fees paid by every affiliate recruited into their matrix.

Residual Recruitment Commissions (binary)

BitcoinEX’s binary residual commissions are paid out via a binary compensation structure.

A binary compensation structure places an affiliate at the top of a binary team, split into two sides (left and right):

The first level of the binary team has two positions. The second level of the binary team is generated by splitting these two positions into another two positions each (4 positions).

Subsequent levels of the binary team are generated as required, with each new level housing twice as many positions as the previous level.

As with the 2×13 matrix, positions in the binary team are filled via direct and indirect recruitment of new BitcoinEX affiliates.

BitcoinEX tally up package investment volume across both binary teams, with affiliates paid 15% of the volume on the weaker binary side.

To qualify for residual binary commissions, a BitcoinEX affiliate must personally recruit at least two affiliates (one placed on either side of the binary team).

The BitcoinEX compensation plan does not state how often residual binary commissions are paid out.

Global Bonus Billing Pool

The Global Bonus Billing pool is made up of 10% of company-wide investment volume.

BitcoinEX affiliates who qualify for binary commissions each receive an equal share in the pool.

Again, the BitcoinEX compensation plan does not state how often the Global Bonus Billing pool is paid out.

Joining BitcoinEX

BitcoinEX affiliate membership is $50 plus investment in one of the following packages:

  • Bronze – $250
  • Silver – $500
  • Gold – $1000

Conclusion

BitcoinEX represent that revenue is generated via cryptocurrency trading and mining.

No proof is provided to back up these claims, with the only verifiable source of revenue entering BitcoinEX sourced from affiliates.

Using new affiliate funds to pay off existing affiliates makes BitcoinEX a Ponzi scheme.

The rest of the BitcoinEX compensation plan is pyramid recruitment, with commissions paid on the recruitment of new affiliates.

This alone makes BitcoinEX a pyramid scheme. Combine it with the package ROIs and you’re looking at a Ponzi/pyramid hybrid.

A good portion of funds paid into BitcoinEX are used to pay direct and residual recruitment commissions. This doesn’t leave much for cryptocurrency trading, let alone at the BitcoinEX’s advertised ROI rates.

Any sort of trading carries with it the risk of loss, which is not addressed on the BitcoinEX website or compensation plan. A guaranteed ROI over a set period of time is more in line with Ponzi fraud than legitimate trading.

As with all Ponzi schemes, once new affiliate recruitment dies down BitcoinEX will be unable to meet its ROI obligations.

This will manifest itself once package ROIs reach the withdrawal amount. That will happen sometime within 150 days of the initial package investment date.

A good indication of new funds slowing down are the recruitment commissions. A slow down in positions filling in either the unilevel, binary or matrix teams will coincide with new investment slowing down.

Some BitcoinEX affiliates will cash out at the minimum ROI amounts. BitcoinEX will be able to cover these withdrawals however at the 150 day mark things will probably fall apart.

BitcoinEX appears to have launched in late November, so late April is probably around time BitcoinEX will collapse in earnest.