Cryptex fails to offer possession or government info on its web site.
Cryptex’s web site area (“cryptex.to”), was privately registered in August 2020. Based mostly on its web site source-code, Cryptex seems to have been put collectively circa June 2021 or so.
SimilarWeb at present tracks high sources of visitors to Cryptex’s web site as Germany (82%), El Salvador (8%) and Martinique (3%).
Though not definitive, the proportion of visitors coming from Germany suggests whoever is working Cryptex might need ties to Germany.
It’s value noting that regardless of the area age, Cryptex was comparatively lifeless till early 2023.
As all the time, if an MLM firm will not be overtly upfront about who’s working or owns it, suppose lengthy and exhausting about becoming a member of and/or handing over any cash.
Cryptex’s Merchandise
Cryptex has no retailable services or products.
Associates are solely capable of market Cryptex affiliate membership itself.
Cryptex’s Compensation Plan
Cryptex solicits funding in $100 USD equivalents in cryptocurrency.
That is carried out on the promise of marketed returns:
- 3 Years – make investments $100 and obtain a day by day ROI for 36 months
- 5 Years – make investments $100 and obtain a day by day ROI for 60 months
- 7 Years – make investments $100 and obtain a day by day ROI for 84 months
Cryptex associates are capable of spend money on a number of $100 positions at every tier.
Observe that Cryptex retains an affiliate preliminary $100 funding underneath the guise of a “dealing with payment”.
The MLM aspect of Cryptex pays on recruitment of affiliate traders.
Referral Commissions
Cryptex pays referral commissions by way of a unilevel compensation construction.
A unilevel compensation construction locations an affiliate on the high of a unilevel staff, with each personally recruited affiliate positioned immediately underneath them (stage 1):
If any stage 1 associates recruit new associates, they’re positioned on stage 2 of the unique affiliate’s unilevel staff.
If any stage 2 associates recruit new associates, they’re positioned on stage 3 and so forth and so forth down a theoretical infinite variety of ranges.
For referral commissions, Cryptex caps payable unilevel staff ranges at ten.
Referral commissions are paid as a share of funds invested throughout these ten ranges as follows:
3 12 months funding contract
- stage 1 (personally recruited associates) – 30%
- ranges 2 to 4 – 5%
- ranges 5 and 6 – 4%
- ranges 7 to 10 – 3%
5 and seven 12 months funding contract
- stage 1 – 50%
stage 2 – 10% - stage 3 – 5%
Residual Commissions
Cryptex pays residual commissions by way of the identical unilevel staff used to pay referral commissions (see above).
Whereas referral commissions are capped at as much as ten unilevel staff ranges, Cryptex pays residual commissions on as much as twenty ranges.
Residual commissions are paid as a share of the day by day ROI paid to unilevel staff associates as follows:
- stage 1 – 8%
- ranges 2 to 4 – 5%
ranges 5 to eight – 4% - ranges 9 to 12 – 3%
- ranges 13 to 16 – 2%
- ranges 17 to twenty – 1%
Observe that residual commissions are solely paid out as soon as an funding contract is accomplished (3, 5 or 7 years).
Becoming a member of Cryptex
Cryptex affiliate membership is free.
Full participation within the hooked up revenue alternative requires a minimal $100 funding.
Cryptex solicits funding in varied cryptocurrencies.
Cryptex Conclusion
Regardless of being a cookie-cutter “smart-contract” Ponzi scheme, Cryptex payments itself because the “1st of its form worldwide”.
Sensible-contact MLM crypto Ponzis have been a factor earlier than the NFT grift took over. MLM crypto Ponzis may nonetheless run on smart-contracts, however pretending it’s some new innovation is lifeless.
Cryptex makes use of the “staking” Ponzi mannequin. That’s associates make investments cryptocurrency, and Cryptex exhibits them monopoly cash “staking” returns of their backoffice.
Withdrawals are funded by subsequently invested cryptocurrency, which works till withdrawals inevitable exhaust the speed of latest funding.
Being an MLM crypto Ponzi scheme, this may coincide with Cryptex affiliate recruitment dying off.
On the regulatory entrance, Cryptex’s passive funding scheme constitutes a securities providing.
Cryptex’s main investor market is Germany. Securities in Germany are regulated by BaFin.
Cryptex supplies no proof it has registered its securities providing with BaFin, that means that at a minimal the corporate is committing securities fraud and working illegally.
I couldn’t assist however discover Cryptex declare their 3 12 months funding plans are “bought out”.
I think these positions are held by Cryptex’s admin ($0 phantom positions), and early scammers from Germany.
Mainly they’re relying on dummies prepared to enroll to Cryptex’s 5 and seven 12 months plans to fund their theft.
The maths behind Ponzi ensures that once they inevitably collapse, the vast majority of traders lose cash.
