Zax Review: ZAX token smart-contract Ponzi scheme
Zax provides no information on its website about who owns or runs the company.
Zax’s website domain (“zaxtokens.io”) was privately registered on August 7th, 2021.
Interestingly enough Zax’s social media accounts appear to have already been terminated;
Zax’s provided Facebook page link throws up a similar error.
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.
Zax has no retailable products or services.
Affiliates are only able to market Zax token itself.
Zax’s Compensation Plan
Zax affiliates invest in ZAX tokens. Once invested in, Zax affiliates park their tokens with the company.
This is done on the promise of a 0.5% a day ROI, capped at 200%.
Note that investment positions also expire if 500% is reached in combined daily returns and earned commissions.
Regardless of whether a ZAX investment position expires at 200% or 500%, reinvestment is then required to continue earning (reinvestment resets the 200%/500% cap).
The MLM side of Zax pays on recruitment of affiliate investors.
Zax pays referral commissions on invested tokens 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.
Zax caps referral commissions down seven unilevel team levels.
Referral commissions are paid as a percentage of funds invested across these seven levels as follows:
- level 1 (personally recruited affiliates) – 10%
- level 2 – 3%
- levels 3 to 6 – 1%
- level 7 – 3%
Note that unlocking each unilevel team requires recruitment; recruit one affiliate to get paid on one level, recruit two affiliates to get paid on two levels and so on and so forth.
By recruiting two affiliates, Zax affiliates qualify for a 10% ROI match down two unilevel team levels.
Zax affiliate membership is free.
Participation in the attached income opportunity however requires investment in ZAX tokens.
Reinvestment is required once a 200% ROI has been reached, or 500% when returns are combined with earned commissions.
Zax is a simple smart-contract Ponzi scheme.
ZAX token “is a TRC20 token on the TRON Blockchain”. This is the equivalent of an ERC-20 token on the ethereum blockchain.
TRC20 tokens take a few minutes to set up at little to no cost.
Zax affiliates hand over TRON for ZAX tokens, transfer them to the smart-contract and receive a daily return.
Returns are paid in ZAX tokens, which whoever owns Zax generates on demand.
If Zax is all being run from a central smart-contract, MLM commissions are paid out in TRON.
The good news is we can see how ZAX is doing thanks to dUh BlOcKcHaIn.
As I write this Zax’s contract balance is 0.000048 TRX. This means promotion of ZAX hasn’t yet begun, or the Ponzi scheme has already collapsed.
Either way if you did or plan to invest in Zax, sorry for your loss.