Neworkoin Review: NWK Ponzi points social marketplace
Neworkoin operates in the MLM cryptocurrency niche and represents it is based out of Malta.
Heading up Neworkoin is its founder and President, Andor Viragh.
According to Viragh’s Facebook profile, Neworkoin was launched on or around September 2018.
Prior to Neworkoin Viragh (right) was promoting Enagic’s Kangen water filters.
That was circa 2014 though, with there being a considerable gap between Kangen and Neworkoin’s founding.
Read on for a full review of Neworkoin’s MLM opportunity.
Neworkoin has no retailable products or services, with affiliates only able to market Neworkoin affiliate membership itself.
Neworkoin’s Compensation Plan
Neworkoin affiliates sign up and invest in NWK virtual tokens.
- Start – invest €100 and receive 100 NWK tokens
- Connect – invest €250 and receive 250 NWK tokens
- Partner – invest €500 and receive 500 NWK tokens
- Access – invest €1000 and receive 1000 NWK tokens
- Premium – invest €3000 and receive 3000 NWK tokens
- Builder – invest €5000 and receive 5000 NWK tokens
- Pro – invest €10,000 and receive 10,000 NWK tokens
Neworkoin’s compensation plan suggests that NWK token investment is “locked” for 52 weeks, after which a return is paid (supposedly generated via “profits of the company”).
In week 52 Neworkoin gives you privileged actions.
This means the opportunity to share in company profits.
Or in the alternative Neworkoin is committed to buy back (your tokens) at the purchase value.
Further details are not provided in Neworkoin’s compensation plan or on their website.
Note that Neworkoin’s compensation plan also mentions “preferred shares” and a “grant program”, however neither are elaborated on.
Each Neworkoin investment package comes with e-commerce platform merchant licenses.
- Start – three basic licenses (50% return)
- Connect – eight basic licenses (60% return)
- Partner – eighteen basic licenses (80% return)
- Access – forty basic licenses (100% return)
- Premium – fifteen basic licenses (125% return)
- Builder – twenty-two basic licenses (150% return)
- Pro – thirty basic licenses (200% return)
The returns above are stated by Neworkoin, on condition all of the bundled e-commerce platform licenses are sold to merchants.
Details about the licenses are not provided in Neworkoin’s compensation plan or on their website.
Recruitment Commissions (unilevel)
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.
Neworkoin caps unilevel levels at five.
Unilevel recruitment commissions are paid out as a percentage of packages invested in by affiliates across these five levels as follows:
- level 1 (personally recruited affiliates) – 5%
- level 2 – 2%
- levels 3 to 5 – 1%
Recruitment Commissions (binary)
A binary compensation structure places an affiliate at the top of a binary team, split into two sides (left and right):
The first level of the binary team houses two positions. The second level of the binary team is generated by splitting these first two positions into another two positions each (4 positions).
Subsequent levels of the binary team are generated as required, with each new level housing twice as many positions as the previous level.
Positions in the binary team are filled via direct and indirect recruitment of affiliates. Note there is no limit to how deep a binary team can grow.
Binary recruitment commissions are paid out as a percentage of packages invested in by binary team affiliates.
At the end of each day Neworkoin tallies up new investment volume on both sides of the binary team.
Affiliates are paid a percentage of funds generated on their weaker binary team side.
How much of a percentage is paid out is determined by how much a Neworkoin affiliate has invested:
- Start package affiliates earn 5%
- Connect package affiliates earn 6%
- Partner package affiliates earn 7%
- Access, Premium and Builder package affiliates earn 8%
- Pro package affiliates earn 10%
Neworkoin’s Binary Bonus is two bonuses made at thirty-two and fifty-two weeks after an affiliate has invested.
At thirty-two weeks Neworkoin rewards an affiliate with a bonus equal to what they’ve earned in residual binary commissions to date.
At fifty-two weeks Premium package affiliates receive the thirty-two week bonus again.
Builder and Pro package affiliates receive twice the thirty-two week bonus.
Neworkoin affiliate membership is €50 EUR.
A visit to Neworkoin’s website reaveals next to nothing about the company’s business model.
What you instead get is a bunch of waffle about a “sharing economy system” and “blockchain technology”.
A system that greatly facilitates merchants in online and offline sales and which, thanks to Blockchain Technology, allows members of the Community to earn real time on all transactions in a transparent and unalterable way.
In reality Neworkoin’s MLM opportunity has nothing to do with either.
Neworkoin affiliates sign up, invest in NWK virtual tokens and are paid to recruit others who do the same.
The whole e-commerce shtick is dead in the water, for the same reason every other MLM crypto e-commerce platform fails:
Third-party merchants aren’t interested in mixing their legitimate business operations with a dodgy platform.
Transactions across Neworkoin’s e-commerce platform are made in NWK.
NWK is not publicly tradeable, has no blockchain (that I could verify) and holds no value outside of Neworkoin itself.
In fact the only time NWK tokens hold any value whatsoever, is when Neworkoin sells them to gullible affiliates at €1 EUR a pop when they invest in a package.
There’s no mention of an internal exchange on Neworkoin’s website or in their compensation plan, so whether affiliates can offload tokens is unknown.
In addition to the e-commerce platform smoke and mirrors, Neworkoin also provide affiliates with “training course for personal and professional growth”.
Standard MLM crypto pseudo-compliance fare.
With respect to Neworkoin’s compensation plan, the reason there’s nothing about it on their website is because it’s the usual Ponzi model.
NWK investment hinges on affiliates cashing out after fifty-two weeks.
That timeline is a ticking time bomb, for what should be obvious reasons.
In the span of 52 weeks, Neworkoin promise to
- pay affiliates at a minimum three times what they’ve earned in binary commissions;
- pay unilevel recruitment commissions;
- provide “preferred shares” in an unknown entity;
- provide 10,000 something (euros?) through a non-explained “grant program”; and
- pay out more than was initially invested or buy back invested NWK tokens (presumably at the original €1 EUR purchase price)
A fourth payout might exist by way of cashing out NWK tokens, but like I said I wasn’t able to verify if there’s an internal exchange or not.
Regardless, the burning due-diligence question is where all this money is going to come from?
As it stands the only verifiable source of revenue entering Neworkoin is €50 affiliate membership fees and new investment.
The token buy-back alone exhausts invested funds, leaving €50 EUR per affiliate recruited to cover everything else?
That’s a huge rolling financial deficit, that’s only going to increase over time as more and more affiliate investments reach the 52 week deadline.
Although convoluted by way of it being tied to an e-commerce platform, Neworkoin is no different to the rest of the MLM crypto Ponzi schemes out there.
Neworkoin affiliate sign up and invest in NWK points. The guaranteed internal value of those points hinges on recruitment of new investors and subsequent recruitment.
The reliance on recruitment introduces a pyramid element to the scheme.
Pay to play is also a regulatory problem by way of how much a Neworkoin affiliate investing determining their binary recruitment commission rate.
As with all Ponzi schemes, once affiliate recruitment dries up so too will new investment.
This will starve Neworkoin of ROI revenue, eventually prompting a collapse.
The only real money in Neworkoin is on initial investment in NWK tokens at €1 EUR a pop.
Fifty-two weeks gives Andor Viragh and friends plenty of time to disappear while keeping up appearances, right up until the last minute.
Maximum admin profit, maximum affiliate losses.
Update 25th August 2019 – Following publication of this review, Neworkoin has rebranded itself as Neworkom.
As far as I can tell the Neworkoin business model reviewed above is the same. All that’s changed is the company name.
New name of Neworkoin is Neworkom. President is the same.
Neworkom Facebook page: “Page created – 22 July 2019”
That was quick.
Had a look into this today, can confirm only the company name changed.
No explanation as to why.
Hi sir i find your rewiew about neworkom.
I’m an Italian boy, some dear friends told me about this neworkom and their unbelieveble oppurtunity for a new future kind of sharing economy, and i’m not sure about that.
Is not all clear about how earn the Money, so you suggest me to don’t subscribe? Is clearly a scam?
My Friends become aggressive the are trying to force me ti subscribe and i’m tired of all this stuff! They said “it’s not like Herbalife Is not a scam, Is not network marketing” maybe but i’m not sure.
They are trying to convince me, because they know i haven’t Money now, and they promise me, i Will earn more than what i Will spend.
I searched some informazioni about neworkom but the only results in italiano speak about the founder Viragh and his project like demigods.
I m Sorry for my bad english sir,
Thanks for ready me have a good evening.
Your friends are desperate to get you to invest so they can steal your money and (partially) recover their own losses.
Neworkom is a Ponzi scheme. You invest and people who joined before you steal your money.
The only way to make back the money you lost is then to scam others who join after you.
I was given information about Neworkom to build a marketplace through an app whose merchants have to buy from affiliates licenses.
Those licenses are numbered and sold as packages. You buy a 500 euro package and obtain a number of basic licenses, there are 3 levels of licenses which I don’t know the differences of, but I suppose those are explained inside the virtual marketplace.
So affiliates directly gain back most of the money by selling licenses and indirectly by the purchase of licenses from lower affiliates.
The license is 50 euro each. A merchant pays that yearly. I do not know if the yearly fee is due to the affiliate that sold it or directly goes to Neworkom.
Inside this marketplace you can buy using Tokens too.
Yeah problem is no legitimate merchant will accept Ponzi points.
There’s nothing to be gained bagholding worthless Ponzi points from desperate investors in exchange for goods. Merchants can’t pay their bills with Ponzi points.
Hi sir Thank you so much for your help.
In this time, with coronavirus and people are hiding in their home, these guys they’re trying to involve more people even now in this scam.
Now there are more companies like BizzTrek BizzTrade and BizzCoin and a new leader Arslan Alvi, that’s a shame and criminale.
I hope the best for you and your country, in these difficult days
I’m also evaluating this Neworkom. Do you know how much your friend invested? The products on sale are essentially web and ecommerce spaces.
Has your friend tried to resell these things or is he just looking for others to get involved in the network?