(First published June 8, 2020)
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Summary: Xoxo Network is a pyramid scheme that is powered by a smart contract and looks good on paper. Don’t believe the hype it’s all tricks people. Pyramid schemes especially of this type will not make you rich. I uncover xoxo.run tricks and lies in the detailed review below. Read on
Pyramid schemes are not new. We know they always crash. But pyramid schemes that are based on Ethereum smart contracts are new. And like most new things everyone likes to jump on board. But it doesn’t make it any less shitty than the previous methods. If you’ve been following this blog, you know I already wrote a lot explaining how this new smart contract pyramid works. I’ve talked about nearly all of them: million.money and smartway.run (read my review here), billion.money (read the review here) and forsage.io (read the review here). If you know one of them, you know them all. So there’s no reason to write the same thing over and over again.
Which is why….
We are going to do this xoxo network review differently.
I’ll start by explaining how xoxo.run works according to what xoxo itself says along with my findings when I took a deep dive into the platform. I’ll conclude by listing and explaining the various red flags, lies, and tricks used by this platform and why joining then is unwise. While you read the first part take note of my frequent use of the word ‘claim’. I’ve used that word to indicate that while xoxo would have you believe it is ‘a certain way’, a closer look shows it’s just a disguise to cover what it actually is. I also try to explain in very simple English because some find it difficult to understand new concepts quickly. Enough said, Enjoy the ride.
How Xoxo Network works
Most pyramid schemes will ask you to refer two or more persons who will in turn keep referring people because as we all know pyramid schemes’ lifeblood is referrals. Starve it of referrals and it dies. Real business doesn’t work like this but you already know it — Pyramid schemes are illegal ‘businesses’.
But what makes xoxo different? Xoxo would like you to believe you only need one referral. Full stop. It brands itself as a single line structure platform. In simple English that just means its own pyramid scheme only mandates you to refer one person. That one person refers another one person and on and on it goes. Xoxo arranges all members in a single line. It uses ethereum smart contract technology to ensure the platform stays running that way and claims you’ll earn money forever. Since it’s based on Ethereum you’ll need an ethereum supported wallet to join the platform- either metamask or trust wallet.
The different levels
Like all pyramid schemes, there are levels to it. Called autopools, xoxo network has 7 levels with different entry prices. Pool 1 is the only different one in terms of how it operates. Pool 2–7 operates the same. It claims you’ll need to refer just one person in pool 1 to keep earning an ‘unlimited referral bonus’. To enter pool 1, you pay 0.1 ETH (about $24) to the network. This amount will be distributed to 4 persons above you. The person who referred you (called sponsor), the person who referred that person, etc. will all get a percentage of your 0.1 ETH. Doing this will give you access to join the other 6 levels (pools) of xoxo. To summarize it, pool 1 is for collecting referrals. You will earn a percentage from anyone you invite and anyone your referrals invite, up to the 4th level.
Now let’s explain pool 2- 7
It works the same way so I’ll just explain one of them in-depth. To enter pool 2 you need to pay 0.2 ETH to the network. The 0.2 eth will be distributed thus: 0.1 Eth will go to your referrer (called sponsor) and the remaining 0.1 eth will go to a xoxo.run member already in pool 2. Joining pool 2 will mean you will be added to a list of xoxo network users already in pool 2. It’s a single queue and pool 2 users are added on a first come first serve basis and gets paid that way too. When’s your turn on the list to get paid the network will allocate 3 persons to pay you 0.1 ETH each. Meaning you get 0.3 ETH in total (0.1ETH * 3). But not so fast. The network is designed such that when you get paid you have to automatically re-subscribe for level 2. Meaning you have to pay 0.2 ETH again from the 0.3 ETH you just earned. That leaves you with only 0.1 ETH as your actual profit.
Pool 3, 4, 5, 6, and 7 works the same way. Just like in pool 2, the platform has been programmed to keep using part of your profit to re-subscribe for the level where you just got the profits. The only difference from pool 2–7 is the entry price and your actual profit which I’ve calculated. So briefly here it is:
Autopool 3: Entry price: 0.3 eth; Actual profit earned: 0.15 ETH
Autopool 4: Entry price: 0.4 ETH; Actual profit earned: 0.2 ETH
Autopool 5: Entry price: 0.5 ETH: Actual profit earned: 0.25 ETH
Autopool 6: Entry price 0.7 ETH; Actual profit earned: 0.35 ETH
Autopool 7: Entry price 1 ETH; Actual profit earned: 0.5 ETH
Xoxo.run claims these profits will happen over and over again at each level but will it?
This all looks good on paper. The above is just a smokescreen to prevent you from seeing what is really going on. In this next section, I reveal all the tricks and lies xoxo network doesn’t want you to know.
Why you should not invest in Xoxo.run network?
To help you understand better I’m dividing this section into 2. The first section reveals the actual lies and tricks of the xoxo platform while the second section will discuss some of the red flags it has in common with other pyramid schemes (inherited red flags)
Lies and tricks of the Xoxo Network
- Falsely represented profits: Looking at the profit calculation above might get you excited thinking you’ll be rich in no time considering xoxo claims it will give out profits forever. False. Xoxo is deliberately not telling you a few things. Look closely again. You will discover that the actual amount you earn isn’t even enough to subscribe to another pool which could have earned you more profits. For example, in pool 3 your actual profit is 0.15 ETH which is not enough to even subscribe to pool 4 (entry fee- 0.4 ETH). Maybe you’re thinking that you’ll eventually be able to afford it after automatically going through pool 3 like 3 times. Again false. You’ll discover that it’s not as fast as they claim. There’s a waiting period when you join a pool. You will be added to a queue and will have to wait till it gets to you. Since it’s a pyramid scheme, this waiting period will continue to increase as the number of people joining the platform reduces. It can result in waiting times increasing from days to weeks and months (until it gets to a point where it takes forever to get paid). Now imagine if you’re number 400 in the queue to get paid.
- Falsely represented entry fee: Xoxo pretends that the only expense you’ll ever need to make is an entry fee of 0.1 ETH. False. This is because to subscribe to other pools you might need to fund your wallet with additional funds. For example pool 4 costs 0.4 ETH to join but in the first round of pool 3, you will have only earned 0.15 ETH that means to afford pool 4 you’ll need to fund your wallet with extra 0.25 ETH. This extra cost happens at other levels too
- It Falsely claims you need 1 referral ever: This is false advertising. Maybe you just need 1 referral to start but you will definitely need more than one in the long run. Because as we all know without referrals pyramid schemes can’t function. That is why you see many xoxo users looking for referrals everywhere. Why? Because you’ll get 50% of your referral’s money. And each time your referral pays to enter a new pool (from autopool 2–7) you’ll also get 50%. Do you now see why you need lots of referrals to make profits? Someone like me with readers interested in passive income can easily invite 500 people or more and get rich with this but how many people can do so conveniently? But I have made a commitment to my fans to remain honest with them and never recommend a shady platform. Recommending this will be a betrayal of their trust.
- False advertising: So many false claims here where do I begin? Like other smart-contract-based pyramid schemes, Xoxo.run network claims the platform is immune to attacks. False. Just Google smart contract bugs and you can see how that can cause smart-contract powered platforms to misbehave. By the way, smart contracts are just programmed codes that execute automatically when some conditions take place. Ethereum Smart contracts are great but were not made to support pyramid schemes and get rich quick schemes. You can do your research and read more about ethereum smart contract. Xoxo has only hijacked and weaponized this great tool called smart contracts to lure people into their scheme.
Another false advertising, xoxo claims to be lucrative. False. As we’ve seen in the section above in the long run it is not. Only if you join xoxo early and have lots of referrals will you ever be rich (I doubt it). Show me, one person, you know personally who became rich through pyramid schemes without being the founder.
Another false claim: Xoxo claims it has no founder because it uses smart contact. Big Lol. Even the co-founder of Ethereum smart contracts is well known (Vitalik Buterin). Every invention has an inventor, don’t be deceived. Who programmed the smart contract? Who designed the website? The only reason why Xoxo founder(s) are not revealing their identity is that it’s a shady scammy scheme and they don’t want you to have anyone to hold responsible when the platform stops paying eventually. If you read this blog often, you know I don’t subscribe to faceless platforms. If you don’t know Xoxo’s founder, why should you trust there is nothing programmed in the smart contract that is designed to cheat you?
Inherited Red flags
In this section, I discuss red flags peculiar to every pyramid scheme in existence. Xoxo network is no different.
- All pyramid schemes crash: That’s a fact. The real question is why do they crash? Because it’s based on an unsustainable business model. New members have to keep joining at the same rate to make sure the scheme keeps paying. But even the world population doesn’t grow at the same exponential rate. Meaning at some point everyone that could join the platform would have joined and when there are no new participants payments will eventually stop. And don’t forget pyramid schemes also have other factors working against it so the people that could join are already very limited. Because number one not many people like to join an illegal shady scheme. And Number two there are other pyramid platforms like million money, smart.run, billion money, forsage and many more competing for the same members. It’s unlikely that a single person is active in more than one or two pyramid schemes at a time. Also don’t be deceived: Using smart contracts doesn’t protect it from crashing, it only makes the crash happen in another way which I’ll explain. The rate at which people join will keep reducing over time resulting in longer waiting times to get paid (from days to weeks to months) and this will discourage others from joining. Eventually when no one else is joining the platform, sure the smart contracts will keep running but will stop paying because there’s no money in the network to be distributed. Isn’t this the same as a crash?
- Pyramid schemes are illegal: Many are unaware but in fact pyramid schemes are illegal in most countries. Go do your research. I cannot get past this major red flag. To confuse the gullible, these illegal schemes will brand themselves using such flowery words like profit-sharing platform, gifting network, passive income program etc.
- Pyramid schemes enriches mostly the founders: Pyramid schemes are designed to enrich those who join the earliest and punishes those who join the latest. Those who join the earliest are usually the founders and a few early members. These are the ones that benefit the most. You don’t know how long this platform will last so if you’re just joining now it’s a great risk. Especially since xoxo expects you to keep upgrading and paying for more levels, it doubles your risks because you don’t know at what level you’ll have just paid for when the platform crashes.
Do not be another victim of pyramid schemes like this person that I warned about million money who didn’t listen.
I’ll like to end this review with something I just discovered
Do you know? More and more smart contract based pyramid schemes are on their way. Get ready.
The reason is it’s now so easy to start your own pyramid scheme. Several companies and freelancers are offering this service. For a little amount they can help you set up your smart contract powered pyramid scheme. See the one below.
Do not join xoxo network. Tell anyone who will listen.
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