L7Dex Review: 1.5% a day “staking” Ponzi scheme
L7Dex fails to provide ownership or executive information on either of its websites.
In fact, at least as far as I can tell, L7Dex’s websites are nothing more than a gateway to the company’s app.
L7Dex operates from two known website domains:
- l7dex.com – privately registered on May 25th, 2023
- l7dex.finance – privately registered on June 30th, 2023
On YouTube L7Dex marketing videos are hosted by someone going by “Nick”:
Nick (assumed to be an alias) speaks Chinese. This suggests Chinese admins are behind L7Dex (possibly Singapore).
As to who is being targeted, SimilarWeb currently tracks top sources of traffic to L7Dex’s websites as Germany (33%0, Italy (13%), the Netherlands (12%), Hungary (11%) and the UK (9%).
This tracks with someone with a German accent presenting L7Dex’s official English presentation on YouTube.
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.
L7Dex’s Products
L7Dex has no retailable products or services.
Affiliates are only able to market L7Dex affiliate membership itself.
L7Dex’s Compensation Plan
L7Dex affiliates invest 100 tether (USDT) or more. This is done on the promise of 1.5% a day.
Note that L7Dex pays out returns through its LUSD and LSD shit tokens. These have to be converted back into USDT within L7Dex itself.
Also note that how long an L7Dex affiliate doesn’t withdraw for determines a penalty fee:
- withdraw within 10 days = 30% fee
- withdraw within 30 days = 25% fee
- withdraw within 90 days = 20% fee
- withdraw within 180 days = 15% fee
- withdraw within 360 days = 10% fee
The MLM side of L7Dex pays on recruitment of affiliate investors.
L7Dex Affiliate Ranks
There are six affiliate ranks within L7Dex’s compensation plan.
Along with their respective qualification criteria, they are as follows:
- V1 – generate and maintain 20,000 LUSD/LSD in downline monthly returns volume (excludes largest unilevel team leg by investment volume)
- V2 – have one V1 or higher ranked affiliate in two separate unilevel team legs
- V3 – have one V2 or higher ranked affiliate in two separate unilevel team legs
- V4 – have one V3 or higher ranked affiliate in three separate unilevel team legs
- V5 – have one V4 or higher ranked affiliate in three separate unilevel team legs
- Partner – have one V5 or higher ranked affiliate in three separate unilevel team legs
ROI Match
L7Dex pays a ROI match 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.
L7Dex pays the ROI Match up two upline levels and down two downline levels:
- a 5% match is paid on returns paid two upline levels
- a 10% match is paid on returns paid two downline levels
The catch is the ROI Match is limited to how much an affiliate themselves has invested.
E.g. An affiliate invests 100 USDT and their upline (the affiliate who recruited them) invests 1000 USDT.
Instead of receiving 5% of 1000 USDT, the affiliate only receives a 5% match on 100 USDT.
This limit is applied to both upline and downline investment.
Residual ROI Match
L7Dex pays a Residual ROI Match on downline ROI payouts based on rank:
- V1 ranked affiliates earn a 10% match
- V2 ranked affiliates earn a 20% match
- V3 ranked affiliates earn a 30% match
- V4 ranked affiliates earn a 40% match
- V5 ranked affiliates earn a 50% match
- Partner ranked affiliates earn a 50% match plus a share in 10% of company-wide ROI payouts
Note that the Residual ROI Match is coded. E.g. if a V4 ranked affiliate has a V2 ranked affiliate in their downline, they will only earn a 20% match on the V2 ranked affiliates ROI payouts (40% – 20%).
Same or higher ranked affiliates pay out a reduced Residual ROI Match, and only across the first three levels of the unilevel team:
- 10% match on level 1 (personally recruited affiliates)
- 5% match on levels 2 and 3
Joining L7Dex
L7Dex affiliate membership is free.
Full participation in the attached income opportunity requires a minimum 100 USDT investment.
L7Dex Conclusion
L7Dex pitches itself as a “decentralized perpetual contract trading platform”. This is a fancy way of saying L7Dex is an MLM crypto Ponzi scheme”.
L7Dex’s Ponzi scheme is simple: They use the staking model and generate LUSD and LSD shit tokens out of thin air.
When withdrawals exceed new investment, the internal conversion functionality to USDT is turned off and L7Dex collapses.
L7Dex pretending to be decentralized is a laugh, when very obviously it is being run by Chinese scammers out of Asia. Ditto L7Dex’s representations it is engaged in trading.
There is no verifiable evidence provided that shows L7Dex pays withdrawals with USDT generated via trading. This claim also fails the Ponzi logic test.
If L7Dex was engaged in trading, such that they can sustain 1.5% a day plus a 50% match through a compensation plan – what do they need your money for?
There obviously is no trading. The only verifiable source of revenue entering L7Dex is new USDT investment.
Recycling this new investment to pay withdrawals is what makes L7Dex a Ponzi scheme.
As with all MLM Ponzi schemes, once affiliate recruitment dries up so too will new investment.
This will starve L7Dex of ROI revenue, eventually prompting a collapse.
The math behind Ponzi schemes guarantees that when they collapse, the majority of participants lose money.
Fitting that one of L7Dex’s shit-tokens is called LSD, given anyone who invests in it is gonna go on a bad trip.
Everything laid out in ths article has not been hidden from investors, they were told all this upfront as part of their presentation and i deem it safe as Satoshi nakamotos identity has remained secret and has preserved the legitimacy of his token
Also it claims itslf as a DEX and you dont really see the CEO of Uniswap or Pancake swap , there is no factual evidence of Scamismqj
There’s no mention of L7Dex being a Ponzi scheme or that the majority of investors will lose money on its website.
Regardless, fraudulent investment schemes don’t become legal if they acknowledge they are fraudulent investment schemes.
Imagine thinking you can rob a bank just because you walked in there and declared you were going to rob it beforehand.
All Ponzi schemes are scams. Pretending otherwise is part of the scam.
Any comments on withdrawals stopping this past week?
Wasn’t aware they had. Source?
Scam Scam…..
Oz wrote:
The following website from Germany has been privately registered in Bavaria since August 12, 2023: l7dex.world
Large parts of the website are in German and the German flag at the top of the website shows that German citizens are to be addressed here.
An event will take place in Cologne (Germany) on December 12, 2023. A ticket costs 22.50 euros and a bank account at Qonto in Berlin is also provided for payment. This is not a German bank, but a branch of a French bank:
share-your-photo.com/d20d3e18ec
l7dex.world/LiveEvents
As is usual with scammers, there is no imprint or other contact details other than a WhatsApp number in Portugal. The region of Madeira is mentioned on Instagram, but no specific location.
The L7 DEX white paper comprises 33 pages and is available for download here:
cdn.website-editor.net/4a513ddbb8444dada94df797039e7394/files/uploaded/L7DEX%2520Whitepaper.pdf
An account of the same name with 42,000 followers has existed on Instagram since September 10, 2023. An email address is given there:
share-your-photo.com/6796717e53
instagram.com/l7dexworld
42,000 followers in less than three months? Is this figure realistic or a fake? Theoretically, that might be possible, as Oz wrote:
More about L7Dex on YouTube later.
In a video from November 19, 2023, Eddie Chong is named and shown as COO of L7Dex, who is apparently Chinese.
share-your-photo.com/d8a952f7ca
youtube.com/watch?v=gWSll-a7H3Q
The following screenshot from October 13, 2023 is not a photo montage!
OneCoin scammer “Thanh OC” (real name Thanh Duong), “Blue Diamond” and DealShaker Country Manager Australia, has been promoting the next scam on Facebook since September 2023: L7Dex.
Example.
share-your-photo.com/11155b6218
Another example from October 6, 2023:
share-your-photo.com/34bfe3ceb4
Another example from November 4, 2023:
share-your-photo.com/c666824636
Who believes a single word this notorious liar says? He does not use his private Facebook account for this advertising, but that of ONE Ecosystem Australia.
facebook.com/oneEcosystemAustralia/
Many of his 14,905 followers on Facebook are still asking when the Exchange will open. He wrote about this topic on October 8, 2023:
Strange. Does what the Bulgarian cryptoqueen Ruja Ignatova announced in Dubai in May 2015 no longer apply?
share-your-photo.com/8e768da3f5
youtu.be/4aCdoWNRl3s?t=394
Wait a minute. Why is ThanhOC allowed to do L7Dex and One Ecosystem too? This is against the rules of One Ecosystem and a big no-no.
Did he get booted from One Ecosystem and not tell anyone?
If not, why is he allowed to do both programs? Inquiting minds want to know.
@Lynndel
His YouTube channel Thanh OC still exists, but has not been updated since September 10, 2022. He does not promote L7 Dex there.
youtube.com/@thanhoc5940/videos
In a video from March 12, 2021, this lousy scammer from Australia answered the frequently asked question of whether OneCoin is a scam.
share-your-photo.com/41fe419e9a
youtube.com/watch?v=WHNyjuC1dJo
Did he answer the question truthfully?
Addition to comment #7.
Obviously the L7Dex scammers from Germany are reading along here. 🙂
1. The website l7dex.world is currently without content. Provider United Domains only shows:
2. The Instagram account (instagram.com/l7dexworld) no longer exists either:
There are still videos on YouTube in which the link to l7dex.world was shown. An example from October 2023:
share-your-photo.com/4c701d2c16
youtube.com/watch?v=gWQmy9VJTao
The YouTube channel L7 Dex Pro with 1,260 subscribers and 103 videos since June 24, 2023:
share-your-photo.com/aa792835d2
youtube.com/@L7Web3/videos
The one, who wrote this article had no idea, what L7 is really about.
Anyone can write an anonym bad article about anything, but this is really one of the worst and unethical article I ever read about something, what is totally different as described there.
It is a shame, that it is allowed to write this way, because people believe what they read and think, that is the truth. What I read here was a misleading presentation of something really new and good.
L7 in reality – 2024 March: (Ozedit: marketing spam removed)
The facts are L7Dex is committing verifiable securities fraud. Why? Because it’s an obvious Ponzi scheme.
Feel free to address that. Marketing spam will see you permanently spam-binned.
Also SimilarWeb website tracking shows L7Dex was dead until recruitment picked up in Germany, the UK and Slovenia over Jan and Feb 2024 – which I’m guessing is where you’ve come from.
Sorry for your loss.