XOXO Network’s website offers no information about its owners or operators. The domain xoxonetwork.io, registered privately on May 23rd, 2020, currently functions solely as an affiliate login portal. Despite its recent registration, promotional activities for the network reportedly began last month.
The company lacks any retailable products or services. Affiliates can only market XOXO Network affiliate membership itself. This absence of tangible offerings is a common characteristic of schemes that rely on recruitment for revenue.
XOXO Network’s compensation plan combines pyramid recruitment with cash gifting. To earn recruitment commissions, affiliates must pay a 0.1 ETH fee. This fee qualifies them to earn percentages from new recruits across four unilevel levels.
Commissions are structured as follows: personally recruited affiliates (level 1) yield 0.05 ETH, level 2 recruits provide 0.025 ETH, level 3 recruits generate 0.015 ETH, and level 4 recruits offer 0.01 ETH. This system incentivizes continuous recruitment to generate income.
The gifting component requires affiliates to gift 0.2 ETH to participate. This amount funds entry into a six-tier 3x1 matrix gifting cycler. A 3x1 matrix requires three positions to be filled before it cycles to the next tier.
Payments across the six tiers are as follows: Tier 1 (0.2 ETH cost) yields 0.1 ETH and cycles to Tier 2. Tier 2 provides 0.15 ETH and cycles to Tier 3. Tier 3 gives 0.2 ETH and cycles to Tier 4. Tier 4 offers 0.25 ETH and cycles to Tier 5. Tier 5 distributes 0.35 ETH and cycles to Tier 6. Tier 6 pays 0.5 ETH and cycles back into a new Tier 6 matrix.
In addition to these direct gifting payments, cycling into Tier 6 also generates referral commissions for the upline recruiter. These commissions are tiered: the initial 0.2 ETH gifting payment generates a 0.1 ETH referral commission. Cycling into Tier 2 yields a 0.15 ETH referral commission, and cycling into Tier 3 results in a 0.2 ETH referral commission. The original source text cuts off before detailing the referral commissions for Tiers 4, 5, and 6.
The structure, heavily reliant on recruitment fees and gifting payments with no underlying product or service sales, strongly resembles a pyramid scheme. Such models are unsustainable, as they depend on a constant influx of new members to pay earlier participants. Regulatory bodies worldwide have issued warnings and taken action against similar schemes.
Victims of such schemes often find it difficult to recover invested funds, particularly when cryptocurrency like ETH is involved, due to its decentralized and pseudonymous nature. Resources for reporting potential fraud and seeking advice can be found through government consumer protection agencies or financial regulatory bodies.