HextraCoin Review: Another cryptocurrency ICO “lending” Ponzi scheme
HextraCoin provide no information on their website about who owns or runs the business.
The HextraCoin website domain (“hextracoin.com”) was privately registered on September 9th, 2017.
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.
HextraCoin has no retailable products or services, with affiliates only able to market HextraCoin affiliate membership itself.
The HextraCoin Compensation Plan
HextraCoin affiliates invest in HextraCoin points on the promise of a ROI.
- invest $100 to $1000 and receive a ROI of up to 48% each month for 239 days
- invest $1010 to $5000 and receive a ROI of up to 48% each month plus 0.15% daily bonus for 179 days
- invest $5010 to $10,000 and receive a ROI of up to 48% each month plus 0.25% daily bonus for 120 days
- invest $10,010 to $100,000 and receive a ROI of up to 48% each month plus 0.3% daily bonus for 99 days
Note that after each maturity period the amount an affiliate initially invested is also returned.
Referral commissions on funds invested by downline affiliates 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.
HextraCoin cap payable unilevel levels at seven.
Commissions are paid out as a percentage of funds invested across these seven levels as follows:
- level 1 (personally recruited affiliates) – 8%
- level 2 – 3%
- levels 3 and 4 – 1%
- level 5 – 0.5%
- level 6 – 0.3%
- level 7 – 0.2%
HextraCoin affiliate membership is tied to a minimum investment of $100.
HextraCoin is yet another ICO Ponzi “lending” scam.
The ruse sees affiliates invest in HextraCoin, which are then “lended” back to the company in exchange for Ponzi ROI payments.
How many HextraCoin points an affiliate gets is determined by HextraCoin, who determine the current internal value of an individual HextraCoin point.
HextraCoin derives revenue from affiliate investment in HextraCoin, which holds no value outside of the income opportunity.
The use of newly invested funds to pay off existing investors through the lending ruse makes HextraCoin a Ponzi scheme.
Referral commissions on downline investment add an additional pyramid layer to the scheme.
At some point HextraCoin might be listed on a public exchange, however this doesn’t negate the Ponzi aspect of the business.
All it does is provide an additional revenue stream for early investors, who are able to offload otherwise worthless HextraCoins onto new gullible investors.
As with all Ponzi schemes, once affiliate recruitment dies down so too will new funds entering the system.
This will see HextraCoin starved of ROI revenue, prompting a collapse.
The math behind a Ponzi scheme guarantees that the majority of investors will lose money.
Update 4th January 2017 – On January 2nd HextraCoin collapsed and suspended affiliate ROI withdrawals.