Liquidix fails to provide ownership or executive information on its website.

Liquidix’s website domain (“liquidix.io”), was privately registered on February 16th, 2023.

One name we can tie to Liquidix is Alex Meurer, aka AM Crypto.

Meurer, originally from Germany, has spent the last few years living in Ukraine and Dubai.

I couldn’t find any mention of Liquidix on AM Crypto or any of Meurer’s social media profiles. At first I thought Liquidix might have misappropriated his name and YouTube brand.

With a bit more digging I came across an April 2023 Liquidix marketing video…

…in which Meurer states;

I’m really looking forward to the launch of Liquidix tomorrow.

Tomorrow is the launch, I really cannot wait to get everyone on board and to enjoy the profits that we can make all there together.

BehindMLM’s guidelines for Dubai are:

  1. If someone lives in Dubai and approaches you about an MLM opportunity, they’re trying to scam you.
  2. If an MLM company is based out of or represents it has ties to Dubai, it’s a scam.

If you want to know specifically how this applies to Liquidix, read on for a full review.

Liquidix’s Products

Liquidix has no retailable products or services.

Affiliates are only able to market Liquidix affiliate membership itself.

Liquidix’s Compensation Plan

Liquidix affiliates invest $50 or more in cryptocurrency equivalents. This is done on the promise of an annual “up to” 256% ROI.

Note that Liquidix confiscates 30% of all invested funds, which it claims it uses to fund its MLM compensation plan.

Also note that after a 100% ROI is reached (i.e. an investor has made back what they initially invested), Liquidix charges a 10% fee on continued ROI payments.

Through its MLM compensation plan, Liquidix pays on recruitment of affiliate investors.

Liquidix Affiliate Ranks

There are eleven affiliate ranks within Liquidix’s compensation plan.

Along with their respective qualification criteria, they are as follows:

  1. Liquidity Provider – sign up as a Liquidix affiliate and invest at least $100
  2. Bronze – invest at least $250 and generate $25,000 in downline investment
  3. Silver – invest $500 and generate $50,000 in downline investment
  4. Gold – invest $1000 and generate $100,000 in downline investment
  5. Pearl – invest $10,000 and generate $500,000 in downline investment
  6. Sapphire – invest $25,000 and generate $1,000,000 in downline investment
  7. Ruby – invest $70,000 and generate $5,000,000 in downline investment
  8. Emerald – invest $100,000 and generate $10,000,000 in downline investment
  9. Diamond – invest $200,000 and generate $20,000,000 in downline investment
  10. Double Diamond – invest $500,000 and generate $50,000,000 in downline investment
  11. Royal Ambassador – invest $1,000,000 and generate $80,000,000 in downline investment

Note that for the purpose of rank qualification, Liquidix restricts how much investment it counts from each unilevel team level:

  • 100% of investment across level 1 (personally recruited affiliates)
  • 85% of investment across level 2
  • 70% of investment across level 3
  • 60% of investment across level 4
  • 50% of investment across level 5
  • 40% of investment across level 6
  • 30% of investment across level 7
  • 20% of investment across level 8
  • 10% of investment across level 9

It appears investment generated deeper than level 9 isn’t counted.

For an explanation of the unilevel team see “Referral Commissions” below.

Referral Commissions

Liquidix pays referral commissions 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.

Liquidix caps payable unilevel team levels at eleven.

Referral commissions are paid as a percentage of cryptocurrency invested across these eleven levels based on rank:

  • Liquidity Providers earn 5% on level 1 (personally recruited affiliates)
  • Bronze ranked affiliates earn 5% on level 1 and 6% on level 2
  • Silver ranked affiliates earn 5% on level 1, 6% on level 2 and 7% on level 3
  • Gold ranked affiliates earn 5% on level 1, 6% on level 2, 7% on level 3 and 8% on level 4
  • Pearl ranked affiliates earn 5% on level 1, 6% on level 2, 7% on level 3, 8% on level 4 and 9% on level 5
  • Sapphire ranked affiliates earn 5% on level 1, 6% on level 2, 7% on level 3, 8% on level 4, 9% on level 5 and 12% on level 6
  • Ruby ranked affiliates earn 5% on level 1, 6% on level 2, 7% on level 3, 8% on level 4, 9% on level 5, 12% on level 6 and 15% on level 7
  • Emerald ranked affiliates earn 5% on level 1, 6% on level 2, 7% on level 3, 8% on level 4, 9% on level 5, 12% on level 6, 15% on level 7 and 17% on level 8
  • Diamond ranked affiliates earn 5% on level 1, 6% on level 2, 7% on level 3, 8% on level 4, 9% on level 5, 12% on level 6, 15% on level 7, 17% on level 8 and 18% on level 9
  • Double Diamond ranked affiliates earn 5% on level 1, 6% on level 2, 7% on level 3, 8% on level 4, 9% on level 5, 12% on level 6, 15% on level 7, 17% on level 8, 18% on level 9 and 19% on level 10
  • Royal Ambassador ranked affiliates earn 5% on level 1, 6% on level 2, 7% on level 3, 8% on level 4, 9% on level 5, 12% on level 6, 15% on level 7, 17% on level 8, 18% on level 9, 19% on level 10 and 20% on level 11

Rank Achievement Bonus

Liquidix rewards affiliates for qualifying at Bronze and higher with the following one-time Rank Achievement Bonuses:

  • qualify at Bronze and receive $1000
  • qualify at Silver and receive $3000
  • qualify at Gold and receive $6000
  • qualify at Pearl and receive $20,000
  • qualify at Sapphire and receive $40,000
  • qualify at Ruby and receive $100,000
  • qualify at Emerald and receive $250,000
  • qualify at Diamond and receive $500,000
  • qualify at Double Diamond and receive $1,200,000
  • qualify at Royal Ambassador and receive $2,400,000

Performance Bonus Commissions

After a Liqudix affiliate has made back what they’ve invested, Liquidix charges a 10% fee on continued ROI payments.

These fees are used to pay a Performance Bonus.

Liquidix pays the Perforamnce Bonus via the same unilevel team referral commissions are paid with (see: “Referral Commissions” above).

The Perforamance Bonus is capped at six unilevel team levels:

  • levels 1 and 2 – 2.5%
  • levels 3 and 4 – 1.5%
  • levels 5 and 6 – 1%

Note that in order for the Performance Bonus to be paid out, unilevel team level affiliates must be paying the 10% Performance Fee.

Joining Liquidix

Liquidix affiliate membership is free.

Full participation in the attached income opportunity requires a minimum $50 investment.

Liquidix solicits investment in various cryptocurrencies.

Liquidix Conclusion

Liquidix operates a simple “staking model” Ponzi scheme.

The ruse behind Liquidix’s Ponzi scheme is “liquidity mining”.

Liquidix is your gateway into the profitable world of liquidity mining.

Liquidity mining is a process where users provide liquidity to a decentralized exchange (DEX) by depositing their funds into a liquidity pool.

In exchange for providing liquidity, users receive rewards in the form of cryptocurrency tokens.

If we get rid of the crypto bro jargon, Liquidix affiliates purportedly invest into a pool. Said pool is made available to a decentralized exchange. Something something profit.

In reality Liquidix affiliates invest, number goes up in the backoffice and early Liquidix investors withdraw subsequently invested crypto.

In addition to that you also have Alex Meurer and friends skimming off the top.

At a bare minimum, Liquidix’s passive returns investment scheme constitutes a securities offering.

Liquidix fails to provide evidence it has registered its investment scheme with financial regulators.

This constitutes securities fraud, which goes hand-in-hand with Liquidix operating a Ponzi scheme.

Amusingly, Liquidix claims:

The total value locked is $3.82 billion and increasing on a daily basis.

This would make Liquidix a top-5 MLM crypto Ponzi of all time, despite only existing for less than a month.

As with all MLM Ponzi schemes, once affiliate recruitment dries up so too will new investment.

This will starve Liquidix of ROI revenue, eventually prompting a collapse.

The math behind Ponzi schemes guarantees that when they collapse, the majority of participants lose money.