CoinXL Review – Ponzi Scheme or Legit Bitcoin Investment?

This detailed CoinXL review takes a closer look at a recently launched cryptocurrency trading service, claiming to make you 150% return on your investment within 150 days.

Recently, we’ve exposed a scam with a similar name, BitcoinXL.org. Someone asked us if BitcoinXLPro.com was related to BitcoinXL.org. Our research led us to discover that BitcoinXLPro.com has nothing to do with BitcoinXL.org . It’s actually one of few other sites we shall mention below, all of which are members of a network of potentially fraudulent websites, known as CoinXL.

Not much information is available about CoinXL online. The BitcoinTalk.org thread mentioning this website barely provides any helpful information in determining whether we’re dealing with a scam. Stick with us as we examine whether this is a real investment opportunity or just another Bitcoin rip off.

What is CoinXL?

CoinXL is an online service that claims to be the first completely transparent Bitcoin trading platform in the marketplace. CoinXL‘s supposed team of expert cryptocurrency traders say they have been quietly building their infrastructure as well as their patent pending algorithm bot trader for the past two years, and are now ready to take it to the general public.

CoinXL pools its members’ Bitcoin collectively as a group. This then gives CoinXL’s traders more liquidity to influence the market. By pooling their resources, they claim to be able to buy more at a better price. Thus, the more Bitcoin they have to trade with on the market, the larger the profit they can generate and share with members on a daily basis.

According to the presentation video on one of their many websites, CoinXL has so called ‘proven wealth building systems’ which help your portfolio grow in even more ways, for example cryptocurrency mining as well as Bitcoin arbitrage. For those who may not know, arbitrage is the practise of taking advantage of a price difference between two or more markets. Essentially CoinXL will buy Bitcoin at a certain price on one exchange and then immediately sell it on another exchange for a higher price.

coinxl.com
CoinXL.com

CoinXL claims to execute real trades that are apparently completely transparent and listed on each members back office. Their returns average 1% per day, seven days a week.

CoinXL Member Plans

Plans are available in either basic or premium and are as follows:

Basic Packages

LLO5

  • Invest 0.50875 BTC
  • 1% ROI Not Eligible
  • Daily Max 0.05 BTC
  • Monthly Max 1.5 BTC
  • 5% Binary Bonus

L1

  • Invest 0.10178 BTC
  • Return 0.15 BTC (1%)
  • Daily Max 0.15 BTC
  • Monthly Max 4.5 BTC
  • 6% Binary Bonus

L3

  • Invest 0.30525 BTC
  • Return 0.45 BT
  • Daily Max 0.45 BTC (1%)
  • Monthly Max 13.5 BTC
  • 7% Binary Bonus

L5

  • Invest 50875 BTC
  • Return 0.75 BTC
  • Daily Max 0.75 BTC
  • Monthly Max 22.5 BTC
  • 9% Binary Bonus

Premium Packages

XL1

  • Invest 1.0175 BTC
  • Return 1.5 BTC
  • Max Daily 1.5 BTC (1%)
  • Max Monthly 45 BTC
  • 11% Binary Bonus

XL2

  • Invest 2.035 BTC
  • Return 3 BTC
  • Max Daily 3 BTC (1%)
  • Max Monthly 90 BTC
  • 13% Binary Bonus

XL4

  • Invest 4.07 BTC
  • Return 6 BTC
  • Max Daily 6 BTC (1%)
  • Max Monthly 180 BTC
  • 15% Binary Bonus

XL5

  • Invest 5.0875 BTC
  • Return 7.5 BTC
  • Max Daily 7.5 BTC (1%)
  • Max Monthly 225 BTC
  • 20% Binary Bonus

CoinXL Warning Signs

Unfortunately, there a few warning signs we came across while doing research for our CoinXL review. Warning signs, we feel you should know before you go ahead and invest your precious bitcoins into this service. After all, although Bitcoin is a cryptocurrency, it is worth a lot of money. It is a real investment, so you should be aware of all the pros and cons of an investment opportunity first.

The first warning sign we noticed had to do with the Coin XL website, or should we say websites. Yes, there is more than one. To name a few, CoinXL.com, BitcoinXLPro.com, Icoinspro.com, CoinXL.info & TeamCoinXL.com. Clearly all of these are associated with the same service, however, they were all registered between the 4th & 12th June 2017, making them only about 3 months old. Additionally all of the websites were registered privately. When you are dealing with investments, if you do not know who is behind the service, you should be instantly weary of joining them.

CoinXL.com - WHOIS

After looking through the above websites, most of them are nearly identical with the same amount of information available, which is not really a lot to be honest. More importantly though, none of them feature any owners, founders, CEOs or members other than stock images.  Not only do they not provide any images of the people running this service, they do not provide any names either. Again, this is a serious warning sign you should consider because in reality, you have no clue who you are actually dealing with, who is trading with your bitcoins, or who is handling your investment.

The second warning sign is the fact that no concrete evidence of any real trading taking place is provided. Yes, they state that all trades executed can be viewed in each members back office feed. However, what are you actually viewing? Those so called trades shown, could easily be programmed to show whatever the owners want it to show. Unless you are viewing the actual trade history via the broker or exchange page, it does not mean a thing.

CoinXL Ponzi Scheme

Brad Cook - CoinXL
Brad Cook

As it stands, there a few indicators which point CoinxL in the direction of a Ponzi scheme. First is the involvement of a man by the name of Brad Cook. Mr. Cook can be seen on CoinXL’s Facebook page and is referred to as being part of the CoinXL leadership in other marketing avenues. The problem is, Brad Cook was previously the CEO of NexxStars, another confirmed Ponzi scheme, which came out in 2014 and subsequently collapsed before the year was out. Brad Cook also claims to have been involved with other companies such as Enliven, National Safety Associates, and Smart Travel, although we could not confirm this with any research on those companies. He also openly states that he was first introduced to MLM Marketing at the young age of 11 through his parents and has been involved in the niche since then. All this serves to confirm our suspicions of CoinXL being more of a Network or MLM Marketing (Pyramid scheme) than a valid Bitcoin investing opportunity.

Furthermore, the simple presence of a CoinXL compensation plan, as well as using freshly invested funds to pay existing members (due to lack of retail-able products) serves to prove that this is indeed a Ponzi/Pyramid scheme. The Compensation plan works by means of earning referral commissions on funds invested by recruited members/marketers and is paid via a binary compensation structure.

A binary compensation structure as explained in Wikipedia is as follows: “A binary plan is an organizational structure used in multi-level marketing (MLM) organizations. In this structure, new members are introduced into a Binary Tree where each “node” or new member of the organization has a left and right sub-tree.”

The percentage pay-outs are listed as ‘Binary Bonus’ in the CoinXL plans we mentioned earlier.

Popularity

At the time of writing these lines, CoinXL.com’s Alexa global rank was 115,401. To attain such a score in just 2 months shows that the site is quite popular. Most of the people who visit CoinXL.com are from Germany, US and Switzerland. Other significant traffic sources include Republic of Korea, Singapore, Colombia and India.

About 20% of the traffic that arrives at CoinXL.com is referral traffic. The site responsible for most of these referrals seems to be BitcoinTeamBuild.com. Another affiliate marketer who promotes the CoinXL app is James Plummer from e-homebased.com. And apparently, they are also using Facebook to promote their site.

CoinXL Review Conclusion

After having conducted extensive research on CoinXL, we would not advise any serious Bitcoin or cryptocurrency investors to join this service. Unless of course you are into the MLM or network marketing niche. Even if you were into that, to join now would land you at the bottom of the binary tree meaning you really would not be able to earn much profit from CoinXL. In order to make a real success out of something like this, you need to join either when the offer is first released or during a pre-launch, as it stands CoinXL was launched over two months ago. Besides the fact that most of these Ponzi schemes never really last long anyway. As soon as members can no longer recruit new members, the owner or person at the top of the chain disappears with everyone’s money and the site is shut down. This has happened countless times before with offers like CoinXL.

We are seeing more and more of these types of websites that ask you to invest your Bitcoin with them, then simply sit back, do nothing and at the end of a certain period they will pay you out more than you originally invested. Unfortunately, for most unsuspecting victims, these are more than likely HYIP scams or Ponzi Schemes that eventually disappear with the investors’ money. Usually in a period of 6 months but often far less. For your own safety we encourage you to do ample research before falling for an offer such as CoinXL.

Verdict: CoinXL is a SCAM!

Blacklisted site: coinxl.com

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