XOXO Network’s website provides no information about who owns or runs the company.

In fact as I write this, XOXO Network’s website is nothing more than an affiliate login form.

XOXO Network’s website domain (“xoxonetwork.io”) was privately registered on May 23rd, 2020.

One thing to note is that despite the recent registration of XOXO Network’s website domain, promotion of the company began last month.

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.

XOXO Network’s Products

XOXO Network has no retailable products or services, with affiliates only able to market XOXO Network affiliate membership itself.

XOXO Network’s Compensation Plan

XOXO Network’s compensation plan combines pyramid recruitment with cash gifting.

Pyramid Recruitment

XOXO Network affiliates pay a 0.1 ETH fee to qualify to earn recruitment commissions.

The pyramid side of XOXO Network’s compensation plan is tracked 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.

XOXO Network caps payable unilevel team levels at four.

Recruitment commissions are paid out as a percentage of fees paid across these four levels as follows:

  • level 1 (personally recruited affiliates) – 0.05 ETH
  • level 2 – 0.025 ETH
  • level 3 – 0.015 ETH
  • level 4 – 0.01 ETH

Gifting Payments

XOXO Network affiliates gift 0.2 ETH to participate in the gifting side of the business.

XOXO Network runs a six-tier 3×1 matrix gifting cycler.

The other half is used to fund entry into a six-tier 3×1 matrix cycler.

A 3×1 matrix is simple in nature, requiring only three positions to fill.

Once all three positions are filled, a “cycle” is generated and the position cycles into the next matrix tier.

Gifting payments across XOXO Network’s six-tier cycler are as follows:

  • Tier 1 (positions cost 0.2 ETH) – receive 0.1 ETH and cycle into tier 2
  • Tier 2 – receive 0.15 ETH in gifting payments and cycle into level 3
  • Tier 3 – receive 0.2 ETH in gifting payments and cycle into tier 4
  • Tier 4 – receive 0.25 ETH in gifting payments and cycle into tier 5
  • Tier 5 – receive 0.35 ETH in gifting payments and cycle into tier 6
  • Tier 6 – receive 0.5 ETH in gifting payments and cycle into a new Tier 6 matrix

In addition to gifting payments, entry through cycling into Tier 6 also generates a commission for the immediate upline (recruiting affiliate):

  • initial 0.2 ETH gifting payment = 0.1 referral commission
  • cycling into tier 2 – 0.15 ETH referral commission
  • cycling into tier 3 – 0.2 ETH referral commission
  • cycling into tier 4 – 0.25 ETH referral commission
  • cycling into tier 5 – 0.35 ETH referral commission
  • cycling into tier 6 – 0.5 ETH referral commission

Joining XOXO Network

XOXO Network affiliate membership is split between pyramid recruitment and gifting.

  • 0.1 ETH is required to participate in the pyramid side of the business
  • 0.2 ETH is required to participate in the gifting side of the business

All up full participation in XOXO Network’s MLM opportunity costs 0.3 ETH.

Conclusion

XOXO Network recycles age-old scam models and uses a smart contract to execute them.

Both pyramid and gifting schemes are illegal scams. Running them through an ethereum smart contract doesn’t make them any less scams.

Pyramid schemes are illegal because the inevitably result in the majority of participants losing money when recruitment dries up.

Gifting schemes are illegal for the same reason.

At any given time, the majority of participants in pyramid and gifting schemes will not have recovered their initial spend.

When the scheme inevitably goes belly up, thus the majority of participants lose money.

Conversely, both pyramid and gifting schemes primarily benefit those running them. This is by way of one more preloaded admin positions.

XOXO Network admin positions sit atop the company-wide unilevel team. They are also first to cycle into the upper tiers of the gifting cycler, through which the majority of funds gifted in changes hands.

Recruiters who get in early and scam the most amount of people come off second best. Everyone else, i.e. the overwhelming majority of XOXO Network participants, loses out.

As with all MLM pyramid and gifting schemes, XOXO Network will collapse when recruitment dies off. To be clear, that’s not a matter of if but when.