ETH-X Review: ETH smart-contract Ponzi tied to Tronex
ETH-X provides no information on its website about who owns or runs the company.
ETH-X’s website domain (“ethx2.io”) was privately registered on October 1st, 2020.
In an attempt to appear legitimate, ETH-X provides a UK incorporation certificate in its compensation plan. “ETH.X Group” was incorporated in the UK on October 2nd, 2020.
UK incorporation is dirt cheap and effectively unregulated. It is a favored jurisdiction for scammers looking to incorporate dodgy companies.
For the purpose of performing MLM due-diligence, UK incorporation is meaningless.
Buried in ETH-X’s website source-code are references to “tronex”:
Tronex was a smart-contract Ponzi scheme. After recently collapsing, it has been rebooted as Tronex World.
The presence of Tronex is ETH-X’s website source-code suggests the same scammers are behind both schemes.
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.
ETH-X has no retailable products or services, with affiliates only able to market ETH-X affiliate membership itself.
ETH-X’s Compensation Plan
ETH-X affiliates invest ethereum on the promise of a 1% daily ROI.
To qualify for the ROI each ETH-X affiliate must recruit three affiliates, who in turn together have invested at least 3 ETH.
A bonus 0.1% is paid for every hour an ETH-X affiliate declines to withdraw invested funds and/or their ROI balance.
Note that between the daily ROI and non-withdrawal bonus, ETH-X caps the total return paid on an investment at 200%.
Once 200% is reached, a new investment must be made in order to continue earning.
ETH-X pays referral commissions down three levels of recruitment (unilevel):
- level 1 (personally recruited affiliates) – 5%
- level 2 – 3%
- level 3 – 2%
ETH-X affiliate membership is free.
Full participation in the attached income opportunity however requires investment in ethereum.
No minimum investment amount is provided either on ETH-X’s website or in their compensation material.
Bizarrely, ETH-X presents itself as an alternative to the yet-to-be-released ethereum 2.0, a rolling out upgrade to ethereum.
We introduce ETHX, a modern-age alternative to Eth2.0 that takes Ethereum Network to a new level, ensuring it scalability, security and cost-efficiency.
In reality ETH-X is just another smart-contract Ponzi scheme.
You sign up, you invest ethereum and ETH-X uses invested funds to pay withdrawal requests. Calculated returns and commissions are made-up unless a withdrawal request is put in.
The recycling of invested funds to pay withdrawal requests is what makes ETH-X a Ponzi scheme. Payment on funds invested by recruited affiliates adds a pyramid layer to the scheme.
As with all MLM Ponzi schemes, once affiliate recruitment dies down so too will new investment.
This will starve ETH-X of ROI revenue, eventually prompting a collapse.
The math behind Ponzi schemes guarantees that when they collapse, the majority of participants lose money.