XOXO Network Review  –  Ponzi Scheme  – MLM Scam

Website & Company Information

The web domain of the company was privately registered on the 23rd of May 2020. The website does not provide any information about the owner or team of the company. 

Despite the fact that the domain was registered in May, its promotions and marketing began in April. 

Now before we move on to the next section of this review, we must clear out that the website so far has been quite non-transparent and we suggest you exercise caution before handing over your hard-earned money to people you don’t know and you can’t even see. 

XOXO Network’s Products

The company has no products or services to offer, but affiliates are only able to market XOXO Network affiliate membership itself.

XOXO Network’s Compensation Plan

This is a typical pyramid recruitment scheme with a cash gifting structure in place. 

Pyramid Recruitment

The affiliates are required to pay 0.1 ETH as a fee in order to qualify for recruitment commissions. All the commissions are taken care of using a unilevel compensation structure. XOXO Network caps payable unilevel team levels at four. 

The commissions for recruitments are paid out as a percentage of fees paid across the following four levels:

  • level 1 (direct recruits) — 0.05 ETH
  • level 2–0.025 ETH
  • level 3–0.015 ETH
  • level 4–0.01 ETH

Gifting Payments

An affiliate of the XOXO Network gifts (better say invests) 0.2 ETH to participate in the gifting side of the business. The network runs a six-tier 3×1 matrix gifting cycler. 

The remaining half is allotted to fund entry into a six-tier 3×1 matrix cycler. A 3×1 Matrix has only three positions to fill and once these positions are filled, a “cycle” is generated and the position cycles into the next matrix tier.

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

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

In addition to attached income opportunity, 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 would get you a referral commission of 0.15 ETH 
  • cycling into tier 3 would get you a referral commission of 0.2 ETH
  • cycling into tier 4 would get you a referral commission of 0.25 ETH
  • cycling into tier 5 would get you a referral commission of 0.35 ETH
  • cycling into tier 6 would get you a referral commission of 0.5 ETH

Joining XOXO Network

It requires one to participate in either pyramid recruitment or gifting scheme in order to become the affiliate member of the company. 

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

All up full participation costs 0.3 ETH.

Conclusion

The company uses a smart contract to execute its scam business model. According to financial regulators, both gifting schemes and pyramid schemes are illegal and constitute fraudulent activity. And using an Ethereum blockchain-based smart contract to run a scam doesn’t make it a legal business. 

Gifting schemes and Pyramid schemes are illegal because of one simple reason — they inevitably result in the majority of participants losing money when recruitment dries up. Add to that, it is almost impossible for the majority of participants pyramid and gifting schemes to recover their initial investment. 

And you know when the fresh money stops coming in, the system collapse and all the money of existing and new investors are lost. 

Only the Owner make money 

The only people who benefit from such schemes are the admins and owners of such projects. They sit on the top of the line with their lions share because they are the first ones who invest in their program before marketing it. This way they see their money getting multiplied by a thousand folds. They are also first to cycle into the upper tiers of the gifting cycler, through which the majority of funds gifted in changes hands.