Beware of Nominex – Review

Nominex is a bitcoin MLM company.

The website domain (“”) for Nominex was initially registered in November 2017.

The private registration, which revealed only Russia as the owner’s address, was last updated on July 4th, 2021.

Nominex provides a Seychelles incorporation certificate on its website in an attempt to appear legitimate.

Basic incorporation in any jurisdiction is meaningless for the purposes of due diligence.

The corporate address in Seychelles provided by Nominex emphasizes this.

This address is shared by several companies, implying that Nominex only exists in Seychelles as a shell company.

Pavel Shkitin is the CEO of Nominex (right).

Shkitin is based in Saratov, Russia, according to his Facebook profile.

As a result, it is confirmed that Nominex is a Russian company posing as being based in Seychelles.

Shitikin had a programming and sales background before reinventing himself as a crypto bro and taking over Nominex.

At the time of publication, Alexa ranked Argentina (16%), Russia (15%), and Costa Rica (11%), as the top sources of traffic to Nominex’s website.

Continue reading for a comprehensive examination of Nominex’s MLM prospect.

Products by Nominex
Nominex offers no retailable goods or services.

Nominex affiliates can only advertise Nominex affiliate membership.

Nominex operates a bitcoin exchange in addition to its MLM opportunity.

The Compensation Plan of Nominex
Affiliates of Nominex invest in NMX tokens with the promise of a yearly return of “above 145%.”

Affiliates of Nominex can now invest NMX and USDT with the promise of a 500% ROI.

Nominex is seeking investment in NMX tokens in the following tether packages (USDT):

Starter: up to 100 USDT Partner: 100 USDT Pro: 300 USDT VIP: 1000 USDT Elite: 5000 USDT Max: 10,000 USDT
Nominex’s MLM division offers commissions on affiliate investor recruiting.

NMX tokens are used to pay out all commissions and incentives.

Commissions for Recommendation
Affiliates of Nominex are paid a portion of the USDT invested by personally recruited affiliates.

The amount spent by a Nominex affiliate determines the referral commission rate:

Starter and Partner get a 20% referral commission.
The referral commission rate is 25%.
VIP – referral commission rate of 30%
Elite has a referral commission rate of 35%.
Maximum referral commission rate of 40%
On NMX returns paid to personally recruited affiliates, referral commissions are also paid.

Again, ROI referral commission rates are determined on the amount invested by a Nominex affiliate:

Starter – no referral commissions on ROI
5% ROI referral commission rate for partners
Pro – 8% ROI on referral commissions
VIP – 10% ROI on referral commissions
Elite – Referral commission rate of 15% ROI
Maximum referral commission rate of 20%
Recurring Commissions
Nominex has a binary compensation mechanism to pay residual commissions.

In a binary compensation system, an affiliate is placed at the top of a binary team, which is divided into two sides (left and right):

The binary team’s initial level has two slots. The binary team’s second level is created by dividing the initial two slots into two more positions each (4 positions).

As needed, subsequent levels of the binary team are constructed, with each successive level containing twice as many spots as the preceding level.

Positions on the binary team are filled through direct and indirect affiliate recruiting. It should be noted that there is no limit to how deep a binary team may develop.

Residual commissions are given by Nominex as a proportion of returns paid to their weaker binary team side. That is the side with the lowest daily returns.

The amount invested by a Nominex affiliate determines the residual commission rate:

Affiliates in the first tier do not earn residual commissions.
Affiliates in the Partner Tier get a 5% residual commission.
Affiliates in the pro tier get an 8% residual commission.
Affiliates in the VIP category get a 10% residual commission rate.
Affiliates in the Elite Tier get a 15% residual commission rate.
Affiliates in the top tier get a residual commission of 20%.
Commissions on Fees
Affiliates of Nominex get a share of revenue generated from individually recruited affiliates.

The commission rates for fees are not revealed.

Nominex affiliate membership is completely free.

Participation in the linked MLM opportunity needs a minimum investment of $100 USDT.

Conclusion of Nominex
Nominex asserts that their management team is

Three Musketeers battling for you and the Great Crypto Justice.

In truth, they’re merely launching another MLM cryptocurrency Ponzi scam that will largely profit themselves.

If Nominex’s exchange has any validity, it is weakened by their NMX token Ponzi scam.

Affiliates of Nominex invest in NMX tokens, park them with the firm in exchange for a passive return, and eventually pay out the monies invested.

The more NMX tokens a person bets in NMX-LP, the more NMX tokens he will earn from the pool.

Fortunately, Nominex has avoided the “staking isn’t investing” nonsense.

Tokens obtained through affiliate activity are identical from tokens obtained through staking: they may, for example, be reinvested into staking.

The NMX coin is a BEP-20 token. These are simple to put up and cost little to nothing.

Nominex’s MLM division concentrates on the recruitment of new affiliate investors. The scheme now has an extra pyramid tier.

NMX has been openly traded since about April 2021.

Above you can see a push to $7.33, followed by the unavoidable shitcoin crash to $1.66 and descending.

I was able to attribute the June NMX rally to Nominex’s active social media promotion on crypto blogs and YouTube.

Nominex disclosed in a blog post on its website that they were paying up to $10,000 for NMX token YouTube videos.

The issue is that NMX is useless outside of Nominex. The connected investment strategy dwarfs any value gained through the trade.

Because it is a Ponzi scam, said investment program will surely fail.

Nominex has put in place incentives to keep affiliates from cashing out…

To persuade someone not to sell tokens, we must demonstrate extra profitability.

We’ve already developed the mechanics: the more a person stakes, the more NMX tokens they receive.

…but these are only band-aid solutions.

They can’t postpone the inevitable withdrawals that will surpass the new investment scenario.

When that happens, keep an eye out for anything like this:

And/or Nominex will simply vanish. Whether due to banned withdrawals or admins fleeing, Nominex affiliates will be left with useless NMX.

Nominex’s NMX token investment program is a securities offering, according to regulatory standards.

Nominex must be registered with financial regulators, which they are not (again, shell incorporation in Seychelles is meaningless).

Recently, the Bank of Russia has taken a more proactive approach to detecting and alerting against securities fraud.

However, Russian officials have so far failed to follow through with enforcement.

Meanwhile, arithmetic is math, and whether Nominex fails or is shut down by authorities, the bulk of Ponzi scheme investors always lose.

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