PowerNodes Review: Mize Network’s Ponzi scam within a scam
PowerNodes provide no information on their website about who owns or runs the company.
The PowerNodes website domain (“powernodes.io”) was privately registered on May 30th, 2018.
Inspection of the PowerNodes website source-code reveals “Mize Network” keyword stuffing:
The Mize Network logo is also featured in the footer of the PowerNodes compensation plan.
Further research reveals Mize Network affiliates promoting PowerNodes as the company’s “first product”.
Mize Network was recently launched by serial scammer Adrian Jacuzzi (right).
The core business model of the company is pyramid recruitment, with PowerNodes appearing to operate as a “business within a business”.
Read on for a full review of the PowerNodes MLM opportunity.
PowerNodes has no retailable products or services, with affiliates only able to market PowerNodes affiliate membership itself.
The PowerNodes Compensation Plan
Mize Network affiliates invest into PowerNodes on the promise of a “daily payment”.
No specifics regarding PowerNodes’ daily ROI payments are provided.
PowerNodes affiliates are paid a 5% commission on funds invested by affiliates they recruit.
Residual recruitment commissions are paid on reinvestment by recruited affiliates.
PowerNodes track residual recruitment 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.
PowerNodes cap payable residual recruitment commissions at nine unilevel team levels.
Commissions are paid out as a percentage of reinvested funds across these nine levels as follows:
- level 1 (personally recruited affiliates) – 3%
- levels 2 and 3 – 3%
- levels 4 to 6 – 2%
- levels 7 to 9 – 1%
PowerNodes pay residual commissions via a binary compensation structure.
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.
At the end of each day PowerNodes tallies up new investment volume on both sides of the binary team.
New investment volume is calculated at a rate of 70% of funds invested across the binary team that day.
Affiliates are paid 10% of matched funds on their weaker binary side.
Leftover funds on the stronger side are carried over to the following day.
PowerNodes pay a 5% Matching Bonus on residual commissions earned by downline affiliates.
The Matching Bonus is paid out using the same unilevel compensation structure as residual recruitment commissions, capped at five levels of recruitment.
PowerNodes fail to provide any information regarding affiliate membership and investment costs on their website.
One would assume Mize Network affiliate membership is a requirement (€50 to €25,000 EUR), with additional PowerNodes investment and reinvestment on top of that.
A visit to the PowerNodes website reveals nothing about the corporate structure of the company.
This is by design, as there’s a calculated effort to present PowerNodes as a stand-alone company.
When a scam collapses, there’s typically a rush to recruit victims into another scam.
Sadly the promise of recovering lost funds in a new scam proves all to tempting for victims, only for even greater losses to occur once the reload scam goes belly up.
Prior to Mize Network, Adrian Jacuzzi was promoting Pool Miners.
This exact same scenario played out, with Pool Miners affiliates shuffled into Infinitum Flame when it inevitable collapsed.
By creating a “scam within a scam”, Jacuzzi stands to retain the highest number of victims when PowerNodes inevitably collapses.
All he has to do is launch a “second product” when Mize Network recruitment drops, followed by a “third product” and so on and so forth.
Eventually even the most gullible of investors will stop reinvesting, but by then Jacuzzi will have achieved his goal of stealing as much money from as many people as possible.
With respect to PowerNodes’ business model, the company claims to be mining some ERC-20 token they’ve taken five minutes to set up.
Other than there being 170 million of them, no details of the token are provided.
Something to be wary of, is the issuing of an ERC-20 token also serves as a means for Mize Network to wipe ROI liability at will.
All Jacuzzi has to do is maintain an internal token value facade (based on nothing).
Then once real money ROI revenue starts to dry up, start paying Mize Network affiliates out in pre-generated PowerNodes tokens.
Push some marketing garbage about “having your own cryptocurrency” and how it’s “sure to increase in value” (again, based on nothing), and then let your affiliates squabble it out as the internal value of the tokens plummets to zero.
Obviously neither Mize Network, PowerNodes or Adrian Jacuzzi are registered to offer securities in any jurisdiction they operate in. Which means at a base level the company is operating illegally worldwide.
Secondary perhaps to Ponzi and pyramid fraud from a potential investor point of view. Still worth keeping in mind though because from a regulatory standpoint that’s the angle PowerNodes will be approached from.
Other than that, expect the usual “omg proof of mining!” evidence to surface at some point.
You know the drill, stickers on mining equipment in some undisclosed location. Shaky YouTube videos and temporary company logo banners tied up to mining rigs.
Everything except actual disclosure and required regulatory registration.
We’ve been down this road plenty times before with MLM cryptocurrency cloud mining schemes. It never ends well.