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 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
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
L7Dex affiliate membership is free.
Full participation in the attached income opportunity requires a minimum 100 USDT investment.
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.