Nexyiu Review: 36 month ROI gift cards Ponzi scheme
Nexyiu provides no information on their website about who owns or runs the company.
Nexyiu represents it is incorporated in Italy as “Nexyiu Italia Srl”. An address in Verona, Italy is also provided.
Nexyiu appears to have launched in mid to late 2018. The company’s website domain (“nexyiu.com”) was registered on June 18th, 2018.
Raffaele Battisti (right) is listed as the domain owner, through an address is Trentino, Italy.
Further research reveals Battisti is Nexyiu’s CEO. Why this information isn’t provided on Nexyiu’s website is unclear.
As per an investigation by the Italian website MarketMovers in late 2020;
- Nexyiu Italia Srl is owned 50/50 by Raffaele Battisti and Danilo Certelli;
- Battisti’s last company, Quadra Srl, an electronic components manufacturer, went bankrupt prior to Nexyiu’s launch; and
- Nexyiu Italia Srl’s corporate address belongs to a bar.
I wasn’t able to find any information on Danilo Certelli outside of Nexyiu. Nor was I able to establish where Raffaele Battisti has an MLM history.
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.
Nexyiu’s Products
Nexyiu has no retailable products or services, with affiliates only able to market Nexyiu affiliate membership itself.
Nexyiu’s Compensation Plan
Nexyiu affiliates invest funds on the promise of receiving more than they invested in giftcards.
- Smart – invest €499 EUR and receive a €40 EUR gift card monthly for 36 months
- Premium – invest €999 EUR and receive an €80 EUR gift card monthly for 36 months
- Family – invest €1999 EUR and receive a €170 EUR gift card monthly for 36 months
The MLM side of Nexyiu sees affiliates paid to recruit new investors.
Nexyiu Affiliate Ranks
There are seven affiliate ranks within Nexyiu’s compensation plan.
Along with their respective qualification criteria, they are as follows:
- One Star – convince others to invest €200 EUR
- Two Stars – convince others to invest €500 EUR
- Three Stars – convince others to invest €1000 EUR and personally recruit at least one Two Star or higher
- Four Stars – convince others to invest €3000 EUR and personally recruit at least one Three Star or higher
- Five Stars – convince others to invest €10,000 EUR and personally recruit at least one Three Star and Four Star or higher
- Six Stars – convince others to invest €30,00 EUR and personally recruit at least one Four Star and Five Star or higher
- Seven Stars – convince others to invest €100,000 EUR and personally recruit at least one Five Star and Six Star or higher
Residual Commissions
Nexyiu pays residual 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.
Nexyiu caps payable unilevel team levels at ten.
Residual commission are paid out as a percentage of funds invested across these ten levels as follows:
- One Stars earn 7% on level 1 and 6% on level 2
- Two Stars earn 7% on level 1 and 6% on levels 2 and 3
- Three Stars earn 7% on level 1 and 6% on levels 2 to 4
- Four Stars earn 7% on level 1, 6% on levels 2 to 4, 4% on level 5 and 2% on level 6
- Five Stars earn 7% on level 1, 6% on levels 2 to 5, 4% on level 6 and 2% on level 7
- Six Stars earn 7% on level 1, 6% on levels 2 to 5, 5% on levels 6 and 7 and 3% on level 8
- Seven Stars earn 7% on level 1, 6% on levels 2 to 5, 5% on levels 6 and 7, 4% on level 8 and 3% on level 9
Rank Achievement Bonus
Nexyiu rewards affiliates for qualifying at Three Stars and higher with the following Rank Achievement Bonuses:
- qualify at Three Stars and receive a one-time €500 EUR bonus
- qualify at Four Stars and receive €500 EUR a month
- qualify at Five Stars and receive €2000 EUR a month
- qualify at Six Stars and receive €4000 EUR a month
- qualify at Seven Stars and receive €10,000 EUR a month
Joining Nexyiu
Nexyiu affiliate membership is tied to an initial €499 EUR to €1999 investment.
The more a Nexyiu affiliate invests the higher their income potential.
Conslusion
The glaring issue with Nexyiu’s business model is where is the money coming from?
In the absence of external revenue, the only source of revenue entering Nexyiu is new investment.
And so we have your classic Ponzi scheme, where newly invested funds are used to pay existing Nexyiu affiliate investors.
What differentiates Nexyiu from your typical MLM Ponzi scheme is the use of gift cards.
Gift cards are widely used to launder money in their own right. Untraceable and able to be sold on at a near 1:1 value.
What I’m unclear on is whether there’s any mechanism within Nexyiu to convert gift cards into real money.
In any event even if there isn’t, someone has to pay for these gift cards being paid out. And I suspect that is a money laundering racket in and of itself.
Just so we’re clear on the likely flow of money here:
- Nexyiu uses invested funds to purchase gift cards at a slight discount (criminals using them to launder funds);
- Nexyiu hands these gift cards to affiliates; and
- Nexyiu affiliates either spend the gift cards or sell them to someone else for a slight value reduction.
Nexyiu could double dip so to speak by officially or unofficially buying the cards back from affiliates and recycling them again.
At the end of the day though math is math. A Ponzi scheme can prolong withdrawals exceeding investment. What the can’t do is stop the inevitable.
Excluding Nexyiu’s pyramid scheme commissions, raw numbers wise we have:
- €499 in and €1440 EUR out
- €999 in and €2880 EUR out
- €1999 in and €6120 EUR out
Nexyiu pays returns over 36 months, further slowing the inevitable collapse.
Another factor to consider is Nexyiu not targeting Italians.
As I write this Alexa ranks the top sources of traffic to Nexyiu’s website as Romania (30%), Greece (15%) and the US (9%).
The US could prove dangerous depending on whether Nexyiu takes off there. Neither Romania or Greece are known for active regulation of MLM Ponzi schemes.
In any event, the buck stops with Italy. According to his LinkedIn profile, Raffaele Battisti is based out of Trentino-Alto Adige.
Italian regulators do tend to be on the more active side but again, I think the lack of targeting Italians is why Nexyiu has flown under the radar.
As stated in the introduction of this review, Nexyiu has been around since late 2018.
Social media marketing suggests Nexyiu is on its third iteration, meaning the Ponzi scheme has already collapsed twice before.
When withdrawals once again exceed new investment, Nexyiu will head towards its third collapse.
The math behind MLM Ponzi schemes guarantees that when they collapse, the majority of participants lose money.