Corex Coin Review: COREX points ICO lending Ponzi scheme
Corex Coin provide no information on their website about who owns or runs the company.
The Corex Coin website domain (“corexcoin.io”) was privately registered on February 9th, 2018.
At the time of publication Alexa estimate India as the largest source of traffic to the Corex Coin website.
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.
Corex Coin Products
Corex Coin has no retailable products or services, with affiliates only able to market Corex Coin affiliate membership itself.
The Corex Coin Compensation Plan
Corex Coin affiliates acquire pre-generated COREX points.
COREX points are sold to Corex Coin affiliates for between 29 cents to $1.05 each.
Once acquired, COREX points are “lent” back to Corex Coin on the promise of a monthly ROI of up to 49%.
- invest $100 to $1000 and receive a minimum 0.1% daily ROI rate for 186 days
- invest $1001 to $5000 and receive a minimum 0.15% daily ROI rate for 155 days
- invest $5001 to $9000 and receive a minimum 0.2% daily ROI rate for 124 days
- invest $9001 to $40,000 and receive a minimum 0.25% daily ROI rate for 93 days
- invest $40,001 to $90,000 and receive a minimum 0.3% daily ROI rate for 62 days
- invest $90,001 or more and receive a minimum 0.35% daily ROI rate for 53 days
Corex Coin pay referral commissions 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.
Corex Coin cap payable unilevel levels at four, with commissions paid out as a percentage of funds invested across these four levels as follows:
- level 1 (personally recruited affiliates) – 7%
- level 2 – 4%
- level 3 – 2%
- level 4 – 1%
Joining Corex Coin
Corex Coin affiliate membership is free, however free affiliates only earn referral commissions.
Full participation in the Corex Coin MLM opportunity requires a minimum $100 investment in COREX points.
Conclusion
Corex Coin claim to generate external ROI revenue through a “3 way trading concept”.
This concept purportedly spans forex and cryptocurrency trading and arbitrage.
Beyond basic definitions of each provided in their whitepaper however, Corex Coin provide no evidence of engaging in any trading or arbitrage.
Furthermore Corex Coin’s claims fail the Ponzi logic test.
On their website, Corex Coin promise a “guaranteed profits of max. 49% per month”.
If Corex Coin’s anonymous owners were already able to generate a passive “guaranteed” ROI of up to 49% a month, why share that revenue with randoms over the internet?
It’s also worth pointing out that the nature of Corex Coin’s guarantee is flaky.
They don’t guarantee a specific ROI each month (only an upper limit), so what exactly is being guaranteed?
The reality of Corex Coin’s business model is that new investment is the sole verifiable source of revenue.
Using newly invested funds to pay existing affiliates a daily ROI makes Corex Coin a Ponzi scheme.
Lending ICO Ponzis like Corex Coin play out as follows:
Admins (who are typically anonymous) offload worthless pre-generated points in exchange for real money. In this case it’s COREX points.
Corex Coin’s admins then use some of this money to pay promised ROIs for as long as new affiliates sign up.
Once affiliate recruitment dries up so does Corex Coin’s ROI reserve.
When a predetermined threshold is reached, Corex Coin’s anonymous admins do a runner with what’s left.
Early Corex Coin investors make a bit of money (mostly via recruitment of new investors). But same as any other Ponzi scheme, the reality of such scams is that the majority of participants eventually lose money.
BitConnect and DavorCoin are recent examples of ICO lending Ponzi collapses in action.