Nexalt (XLT) is a Multi-Level Marketing Blockchain
Multi-level marketing has been a marketing strategy to sell products for decades – Tupperware originally used multi-level marketing to market its products to consumers. It’s generally regarded as an unsustainable marketing strategy with many considering it a scam.
This has not stopped one cryptocurrency company – Nexalt – from launching what they dub the multi-level marketing of cryptocurrency.
This article will cover everything you need to know about Nexalt and discuss the investment prospects of this project.
What is Nexalt (XLT)?
Nexalt is a cryptocurrency project on the Binance Smart Chain. It dubs itself as a multi-level marketing campaign of cryptocurrency. The whitepaper is mostly gibberish and attempts to obfuscate how the project actually works, so we will just explain it here in simple terms.
Nexalt is a staking token. Users can stake their tokens to earn rewards. If they refer users and those users stake tokens, then the referrer will receive a commission of the referral's earnings. This can go up to ten levels deep, so the referrer can earn quite a bit of money if they get in early on the project.
Note: The whitepaper calls the referrers users the upline, which is wrong. The proper term is downline.
The project makes a lot of claims to mask the fact that it's nothing more than a pyramid scheme. They even have a section in the whitepaper titled, “This is not Ponzi [sic].”
If a whitepaper has a section titled “This is not a Ponzi,” then it’s probably some sort of scam. In this case Nexalt is not a Ponzi scheme, it’s a pyramid scheme. There is actually a difference between the two.
Our Problems with Nexalt (XLT)
We have a lot of problems with Nexalt. In fact, we have nothing good to say about this project because it really is that bad of a project. Here are some of our issues with Nexalt.
It’s an Multi-Level Marketing (MLM) Scheme
Our first, and biggest, problem with Nexalt is that it’s an MLM. We read the whitepaper and saw that they describe themselves as an MLM and instantly wanted nothing to do with it.
Every MLM is a scam.
The model relies on recruiting users in order to earn money from those users. The problem is that every MLM eventually runs out of people to recruit. This means that new recruits cannot find other recruits and no one makes any money.
A more typical MLM (ie. Mary Kay or Amway) will simply sell products to “distributors” and the corporation will still earn money from those sales even if the “distributor” earns no money. It does not appear Nexalt has this mechanism in place, which is unusual.
Anyway, just avoid all MLMs. They are simply not worth the headache and the chances of making money in one are so low that it’s not worth the effort nor risk.
We already knew this project was horrible because it’s an MLM. But we will add on that the whitepaper for the project is awful. The authors of the whitepaper clearly have a lack of understanding of blockchain technology. They claim that Nexalt is a hybrid of Proof of Work (PoW) and Proof of Stake (PoS).
They act as if Nexalt has its own blockchain – it doesn’t. It’s on the Binance Smart Chain.
It truly is nothing more than a staking token. That obviously would not look good in a whitepaper, so they wrote a lot of nonsense to mask that fact.
They even have a section titled, “Nexalt is not Ponzi [sic].”
That is technically correct – MLMs are not Ponzi schemes. That does not, however, make them legit. Pyramid schemes (MLMs) are just as unsustainable as Ponzi schemes.
Is Nexalt (XLT) a Good Investment?
No, Nexalt (XLT) is a horrible investment and one you should avoid. You should never invest in a multi-level marketing scheme. They are unsustainable because they rely on recruiting more and more individuals in order to make money. Of course, there are not an infinite amount of people on Earth, so these schemes eventually run out of people and the whole thing collapses.
The only people that make any money in MLM schemes are the founders and those that got in early and could form big downlines (Nexalt calls them uplines for some reason).
It appears that Nexalt has already run its course. Remember, MLMs are not sustainable, so once they run out of new investors they collapse. Just look at the price chart:
It’s interesting to note that Nexalt has seen a small increase in price over the past few weeks. Do not let that fool you – this is still an MLM, which means it’s not investment worthy.
Nexalt is a self-proclaimed cryptocurrency MLM.
That tells us all we need to know about this project. It’s one that you should avoid as an investment. There are much better cryptocurrencies to invest in than Nexalt (XLT).