DefiNetworx Review: 5000% ROI Ponzi with token exit-scam
DefiNetworx provides no information on its website about who owns or runs the company.
DefiNetworx’s website domain (“definetworx.com”), was privately registered on August 4th, 2021.
On its website, DefiNetworx claims to be “based in United Kingdom and Lugano Switzerland.”
No evidence of this claim is provided.
Further research reveals official DefiNetworx marketing material citing “Norberto Parisella” as CEO of the company.
Parisella is represented by a cropped photo of some guy sourced from who knows where. He doesn’t exist outside of DefiNetworx marketing material.
DefiNetworx’s CTO, Massimiliano Camozza, does appear to be an actual person.
Polo Swiss AG appears to be a blockchain bro company based out of Switzerland. In the video above Camozza is credited as Polo Swiss AG’s CEO.
Polo Swiss AG has a website up at “polomultimodal”. It appears to run alongside a Brazilian firm going by Polo Multimodal Pecem.
There’s not much going on there. “News” hasn’t been updated since April 2021. Polo Swiss AG’s FaceBook page hasn’t been updated since July 2020.
According to Camozza’s DefiNetworx corporate bio,
in 2017 he achieved certified status as a Blockchain Engineer and Financial Blockchain Analyst.
Whatever that means…
As opposed to Norberto Parisella, Massimiliano Camozza appears to be the actual blockchain bro behind DefiNetworx.
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.
DefiNetworx has no retailable products or services.
Affiliates are only able to market DefiNetworx affiliate membership itself.
DefiNetworx’s Compensation Plan
DefiNetworx affiliates invest tether and bitcoin on the promise of advertised returns, capping out at 5000% ROI.
- Bronze – invest $100 and earn up to 900%
- Silver – invest $250 and earn up to 1100%
- Crystal – invest $500 and earn up to 1400%
- Gold – invest $1000 and earn up to 1700%
- Ruby – invest $3000 and earn up to 2000%
- Emerald – invest $5000 and earn up to 2200%
- Diamond – invest $10,000 and earn up to 2500%
- Executive – invest $30,000 and earn up to 3000%
- Premium – invest $50,000 and earn up to 3500%
- Royal – invest $100,000 and earn up to 4000%
- Royal Diamond – invest $250,000 and earn up to 5000%
DefiNetworx pays returns as a variable daily percentage for 36 months.
The MLM side of DefiNetworx pays on recruitment of affiliate investors.
Note that to qualify for residual commissions and the Matching Bonus, an affiliate must recruit and maintain two affiliates with an active investment.
DefiNetworx pays a 5% commission on funds invested by personally recruited affiliates.
DefiNetworx pays residual commissions 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 houses two positions. The second level of the binary team is generated by splitting these first 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.
Positions in the binary team are filled via direct and indirect recruitment of affiliates. Note there is no limit to how deep a binary team can grow.
At the end of each day Definetworx tallies up new investment volume on both sides of the binary team.
DefiNetworx pays residual commissions as 8% of funds invested on their weaker binary team side.
DefiNetworx’s compensation plan states affiliates can earn “up to $300,000 per month in the binary bonus”. No further specifics are provided.
DefiNetworx pays a Matching Bonus 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.
DefiNetworx caps the Matching Bonus at ten unilevel team levels.
The Matching Bonus is paid out as a percentage of residual commissions earned and the daily ROI paid across these ten levels as follows:
- level 1 (personally recruited affiliates) – 3%
- levels 2 to 10 – 1%
DefiNetworks affiliate membership costs $10 plus a $100 to $250,000 initial investment.
The more an affiliate invests, the higher their income potential via DefiNetworx’s compensation plan.
DefiNetworx solicits investment in tether and bitcoin.
To explain how it pays returns of up to 5000%, DefiNetworx trots out the usual MLM crypto Ponzi ruses:
We’ve developed our Artificial Intelligence based system to ensure high return with low risk and quick withdrawal.
Our blockchain company has the most advanced technology in the whole blockchain industry.
There is no evidence DefiNetworx generates external revenue of any kind.
Also despite clearly offering a security by way of a three-year passive investment plan, DefiNetworx fails to provide evidence it has registered with financial regulators.
This means that at a minimum DefiNetworx is committing securities fraud.
As it stands, the only verifiable source of revenue entering DefiNetworx is new investment.
Using new investment to pay daily returns makes DefiNetworx a Ponzi scheme. Paying commissions on funds invested by recruited affiliates adds an additional pyramid layer to the scheme.
As with all MLM Ponzi schemes, when recruitment dries up so too will new investment.
DefiNetworx will continue to pay monopoly money returns to the affiliate backoffice, but eventually won’t be able to pay withdrawals.
When that happens, DefiNetworx’s exit-scam of choice appears to be the token launch.
This will see DefiNetwork launch its own token. Withdrawals will eventually be switched to the token, trapping invested funds inside the system.
The token exit-scam model will see DefiNetworx initially pay withdrawals when affiliates cash out their tokens.
That’ll eventually dry up, leaving the majority of DefiNetworkx affiliates bagholding yet another worthless MLM shitcoin.
The math behind Ponzi schemes guarantees the majority of participants lose money.