StaxCash Review: Making an ICO lending Ponzi even more insidious
StaxCash provide no information on their website about who owns or runs the business.
The StaxCash website domain (“stax.cash”) was privately registered on December 18th, 2017.
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.
StaxCash Products
StaxCash has no retailable products or services, with affiliates only able to market StaxCash affiliate membership itself.
The StaxCash Compensation Plan
StaxCash affiliates invest in STAX points, available for 50 cents to 95 cents each.
STAX points are then “lent” back to StaxCash on the promise of a daily ROI of up to 2.5%.
- invest $100 to $1000 and receive a daily ROI for 299 days
- invest $1001 to $5000 and receive a daily ROI plus 0.1% daily bonus for 239 days
- invest $5001 to 10,000 and receive a daily ROI plus 0.2% daily bonus for 179 days
- invest $10,001 to $25,000 and receive a daily ROI plus 0.25% daily bonus for 119 days
- invest $25,001 or more and receive a daily ROI plus 0.35% daily bonus for 89 days
ROI payments by StaxCash are made in STAX and must be converted back to fiat through an internal exchange.
Referral commissions are available on funds invested in StaxCash, paid out 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.
StaxCash cap payable unilevel levels at five.
Referral commissions paid out as a percentage of funds invested across these five levels as follows:
- level 1 (personally recruited affiliates) – 8%
- level 2 – 4%
- level 3 – 2%
- levels 4 and 5 – 1%
StaxCash Gold
In addition to a daily ROI on lent STAX points, StaxCash affiliates also receive an Stax Gold points at an 8:1 ratio.
StaxCash affiliates who complete a maturity period on lent STAX points receive Stax Gold points at a 3:1 ratio.
Stax Gold points correlate to a minimum 0.5% daily ROI payment for 15 days.
Joining StaxCash
StaxCash affiliate membership is free, however free affiliates can only referral commissions.
Full participation in the StaxCash income opportunity requires a minimum $100 investment.
Conclusion
StaxCash claim to generate ROI revenue through a “software bot”.
StaxCash have developed a software bot that is dedicated to monitoring over 10 exchanges at once to find the best arbitraging [sic] opportunities across numerous cryptocurrency coins.
Naturally no evidence of the bot exists.
StaxCash’s claim also fails the Ponzi logic test.
If the StaxCash admins actually had a bot, why would they share generated profits with randoms over the internet?
Surely the smart thing to do would be to set the bot up and let it run, keeping 100% of generated profit for themselves?
StaxCash takes the standard ICO Ponzi model, wherein ROI payments are made in USD, and restricts it even further by paying daily ROIs in STAX points.
These points have to be converted to USD through the internal StaxCash exchange for a ROI to be realized.
StaxCash’s owners are obviously hoping affiliates just roll over their STAX points, meaning they keep as much money in the system for as long as possible.
Otherwise it’s the same old MLM Ponzi ICO model. StaxCash’s anonymous admins sell off worthless points for real money, promise a ROI and keep it running until they hit a threshold.
At that threshold they do a runner with whatever they’ve stolen (typically the majority of invested funds), leaving the majority of StaxCash affiliates with a loss.
STAX is supposed to be a real altcoin. This is just riding on the name and causing confusion.
Can’t see anything on CMC?
Seems to from ten minutes of reading everything is a scam in the lending crypto world in your opinion.
Is there any that you think are not a scam or is that an impossibility. I’m guessing you think they all are.
The ICO lending model by definition is Ponzi fraud.
It’s just a smoke and mirrors way of saying “give us your money and we’ll give you more than you gave us from people who joined after you”.
You can’t make a Ponzi scheme “not a scam”. Those are the facts, what you think about the facts or profess to know what I think is neither here nor there. Ditto opinions.
And 5 seconds of some thinking should lead you to the same conclusion.
Think about it, who *wants* crypto to be willing to borrow some at high interest rates? The answer is nobody. People who are desperate for crypto will convert fiat currency to crypto, like to pay ransom or get on the Darknet.
There is no market for “lending crypto”. It made no sense at all.