CubeBit doesn’t provide any information about who owns or runs the company on its website.
On October 2nd a video titled “Cubebit Interview with the CEO” was uploaded to CubeBit’s official YouTube channel.
The video features an interview with CubeBit’s “newly appointed” CEO, Konstantin Janke.
Janke works for Big Eye News. Big Eye News is part of Big Eye Media, a production company that claims it’s “dedicated to providing high quality and informative content.”
Big Eye Media is part of Big Eye Agency, “an audience-focused, creative-driven, full-service advertising agency”.
A Big Eye promo precedes Janke’s CubeBit CEO video interview, so it seems part of their offering is producing fake CEO videos.
Janke appears to have been hired to play CEO following the appointment of CubeBit’s original CEO, a Fivver gig:
Interviewing Janke is CubeBit’s Master Global Ambassador, Romel Gumiran.
Gumiran is an actual person. In addition to Master Global Ambassador Gumiran is also the sole officer of CubeBit Business Solutions, a UK shell company incorporated in May.
As per the shell incorporation, Gumiran is Filipino but resides in Norway (this might explain the Janke actor’s accent). On Facebook however Gumiran’s recent posts feature photos shot in Dubai.
CubeBit’s official Facebook page is managed from Albania (this might also explain the Janke actor’s accent), Brazil and the Philippines.
On his LinkedIn profile, Gumiran pitches himself as
a system consultant at Nexus chain, specializing in developing Token, Cryptocurrency coin, Trading platform for Cryptocurrency and MLM software for MLM startup Company.
Pending any further information coming to light, it appears CubeBit is run by Romel Gumiran. Whether he’s working alone or with others is unclear.
CubeBit’s website domain (“cubebit.io”) was first registered in 2018. The private registration was last updated on April 16th, 2020.
Through the Wayback Machine it appears CubeBit’s current website didn’t go live until after the April update. This suggests CubeBit’s owner(s) acquired the domain in April, 2020.
Alexa currently ranks Pakistan as the only significant source of traffic to CubeBit’s website (92%).
As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.
CubeBit has no retailable products or services, with affiliates only able to market CubeBit affiliate membership itself.
CubeBit’s Compensation Plan
CubeBit’s compensation plan can be broken up into CubeBit recruitment commissions and various other side schemes.
Recruitment commissions are tied to recruitment of either Lite or Elite CubeBit affiliates.
- CubeBit Lite affiliate membership costs €49 EUR
- CubeBit Elite affiliate membership costs €299 EUR
I’ve detailed CubeBit’s recruitment commissions below. Side schemes, including AdCube and CubeBot, are detailed under their own respective headers.
CubeBit Direct Recruitment Commissions
CubeBit pays a commission on recruitment of affiliates.
A €5 EUR commission is paid on recruitment of Lite affiliates. €30 EUR is paid on recruitment of Elite affiliates.
CubeBit Residual Commissions (binary)
A binary compensation structure places an affiliate at the top of a binary team, split into two sides (left and right):
The first level of the binary team houses two positions. The second level of the binary team is generated by splitting these first two positions into another two positions each (4 positions).
Subsequent levels of the binary team are generated as required, with each new level housing twice as many positions as the previous level.
Positions in the binary team are filled via direct and indirect recruitment of affiliates. Note there is no limit to how deep a binary team can grow.
Residual commissions are paid on generated sales volume across the binary team.
- Lite affiliate recruitment generates 50 BV
- Elite affiliate recruitment generates 300 BV
CubeBit pays residual commissions up to four times a day, via convoluted time-sensitive “phases”.
- Lite affiliates are paid 20% of matched BV on their first phase and 15% of matched BV on their second phase
- Elite affiliates are paid 25% of matched BV on their first phase and 20% of matched BV on their second phase
There are two phases per day, corresponding with AM and PM timing.
Within these phases CubeBit affiliates are able to earn on two rotating pay cycles:
- Lite affiliates are paid on a 150/150 BV cycle and then a 300/300 BV cycle, capped at €750 EUR over phase 1 and €1500 EUR over phase 2
- Elite affiliates are paid on a 900/900 BV cycle and then a 1800/1800 BV cycle, capped at €3000 EUR over phase 1 and €6000 EUR over phase 2
During each AM/PM phase, cycle matching occurs until the respective earnings cap for that phase is reached.
Note that BV does not carry over from phase to phase.
CubeBit Residual Commissions (2×10 matrix)
A 2×10 matrix places a CubeBit affiliate at the top of a matrix, with two positions directly under them:
These two positions form the first level of the matrix. The second level of the matrix is generated by splitting these first two positions into another two positions each (4 positions).
Levels three to ten of the matrix are generated in the same manner, with each new level housing twice as many positions.
Commissions are paid as a percentage of fees paid across these ten matrix levels as follows:
- level 1 (2 positions) – 10%
- level 2 (4 positions) – 8%
- level 3 (8 positions) – 6%
- level 4 (16 positions) – 5%
- level 5 (32 positions) – 5%
- level 6 (64 positions) – 4%
- level 7 (128 positions) – 4%
- level 8 (256 positions) – 3%
- level 9 (512 positions) – 3%
- level 10 (1024 positions) – 2%
CubeBit rewards affiliates for meeting set cycle rotation criteria.
A cycle rotation is completion of two cycles within a phase. Whether rank qualification criteria is met within one phase, two phases or some other time period is not specified.
What Incentive Bonuses can be qualified for are determined by how much a CubeBit affiliate pays in membership fees.
Lite tier affiliates
- complete 12 cycle rotations and receive “smart phones”
- complete 30 cycle rotations and receive a “tablet”
- complete 50 cycle rotations and receive a MacBook Air laptop
Elite and higher tier affiliates
- complete 10 cycle rotations and receive “fully paid tuition fee in London Academy of Trading with diploma”
- complete 40 cycle rotations and receive a €2500 EUR travel allowance
- complete 50 cycle rotations and receive €4000 EUR as “car assistance” and/or a “fully paid “2020 Honda Civic Type R”
- complete 100 cycle rotations and receive €8000 EUR as “car assistance” and/or a “fully paid 2020 Camaro”
- complete 200 cycle rotations and receive €20,000 EUR as “car assistance” and/or a “fully paid 2020 Porsche 911 Carrera S”
- complete 500 cycle rotations and receive a “fully paid 2020 Rolls Royce Phantom” or “2020 Lamborghini Aventador”
CubeBit Elite affiliates have access to the Leadership Bonus.
The Leadership Bonus is a series of rewards for qualifying at 1 Star Satoshi and higher Elite tier exclusive ranks.
- qualify as a 1 Star Satoshi (complete 10 cycle rotations) and receive “1 Ballet (Silver)”
- qualify as a 2 Star Satoshi (complete 20 cycle rotations) and receive “2 Ballet (Silver”
- qualify as a 3 Star Satoshi (complete 30 cycle rotations) and receive “1 Gold, 2 Silver + Gold BTC Coin(s)”
- qualify as a 4 Star Satoshi (complete 40 cycle rotations) and receive “2 Gold & Silver + Gold BTC Coin + ring”
- qualify as a 5 Star Satoshi (complete 50 cycle rotations) and receive “5 Gold Ballet + Coin + Ring”
- qualify as a 21M Club Satoshi (complete 100 cycle rotations) and receive “5 Gold Ballet + Coin + Ring & Bitcoin Watch (Frank Muller worth of $20K)”
I’ve quoted Leadership Bonus rewards verbatim because no explanations are provided.
In addition to the above rewards, the Leadership Bonus also pays a Jackpot and Flushout.
- 1 Star Satoshis receive a 5% Jackpot and Flushout share
- 2 Star Satoshis receive an 8% Jackpot and Flushout share
- 3 Star Satoshis receive a 15% Jackpot and Flushout share
- 4 Star Satoshis receive an 18% Jackpot and Flushout share
- 5 Star Satoshis receive a 24% Jackpot and Flushout share
- 21M Club Satoshis receive a 30% Jackpot and Flushout share
Both the Jackpot and Flushout share are funded from funds entering CubeBit.
Ad Cube is an ethereum-based pyramid scheme run on a 3×9 matrix.
A 3×9 matrix places an affiliate at the top of a matrix, with three positions directly under them:
These three positions form the first level of the matrix. The second level of the matrix is generated by splitting these three positions into another three positions each.
Levels three to nine of the matrix are generated in the same manner, with each new level housing three times as many positions as the previous level.
CubeBit affiliates purchase 0.0114 ETH positions in the matrix.
A 0.0038 ETH commission is paid per subsequent matrix position purchased.
In order to participate fully in the Ad Cube component of CubeBit’s compensation plan, affiliates must purchase at least three Ad Cube matrix positions.
The first Ad Cube matrix position purchase pays commissions on three matrix levels.
The second Ad Cube matrix position purchase pays commissions on up to six matrix levels.
The third Ad Cube matrix position purchase pays commissions on all nine available matrix levels.
Subsequent Ad Cube matrix position purchases continue to pay commissions on all nine available matrix levels.
In addition to matrix commissions, a 0.05 ETH commission is paid every time a personally recruited affiliate purchases a matrix position.
This commission is increased to 0.01 ETH for CubeBit “publishers, influencers & promoters”.
Through CubeBot, CubeBit affiliates invest bitcoin, ethereum or ripple into “an automated crypto trading bot”.
Investment amounts and returns are not disclosed on CubeBot’s website.
CueBit affiliate membership is available at four price-points:
- Lite – €49 EUR
- Elite – €299 EUR
- Premiere – €799 EUR
- Prestige – €1299
The primary difference between the tiers is the more money spent, the higher a CubeBit affiliate’s income potential.
It is unclear whether these affiliate membership fees are one-time or periodic.
Reading between the lines, CubeBit is an in-house use-case for Romel Gumiran’s flopped Nexus Chain venture.
As per Nexus Chain’s website (“nexuschain.net”), the company provides “offshore company registration” and “premium MLM solution(s)”. Basically your typical “scam in a box” outfit.
Nexus Chain currently has an Alexa website ranking of over 4 million, which for an active business is as good as dead.
And so we have CubeBit Tech. As stated in the introduction of this review, whether Gumiran is working alone or with others from NexusChain is unclear.
What is clear is every aspect of CubeBit, with respect to their MLM opportunity, is fraudulent.
CubeBit itself is a simple pyramid scheme. You sign up, pay a fee and earn commissions when others are recruited who do the same.
Being a pyramid scheme, CubeBit affiliates are openly encouraged to open multiple accounts:
This would of course make no sense in a legitimate business.
Ad Cube is a pyramid scheme within a pyramid scheme. CubeBot is your typical “trading bot” Ponzi scheme.
The algorithms employed in CubeBot are based on driven stake method where we employed tedious testing to identify the most profitable cryptocurrency trading options through automation.
That’s literally all there is to CubeBit as an MLM company.
Outside of MLM CubeBit houses the following components:
- Cube Shop – ecommerce platform
- Cube Academy – “diverse online courses”
- Cube Lab – no information provided
- Cube Chat – no information provided
- Cube Ride – no information provided
- Cube Play – unlicensed gambling platform (illegal)
- Cubex – internal exchange
- CPay – crypto wallet with disabled fiat withdrawals
- CTravel – discount travel booking portal
- Cube Portal – smart contract platform
- Cube Delivery – no information provided
I didn’t bother going into detail for any of the above as they have nothing to do with CubeBit’s MLM offering.
CPay and Cubex appear to be how withdrawals are processed, and that brings us to CubeCoin.
Presently CubeBit markets with euro amounts for both funds in and out. Within CubeBit is “CubeCoin” (CUB), an worthless ERC-20 shit token generated on demand at little to no cost.
Such to the extent that CubeBit are currently paying with EUR, cryptocurrency or any other form of non-CUB payment, expect that to change when withdrawals exceed funds entering CubeBit.
CubeCoin will be hyped up as being worth something, when in reality it’s just an exit-scam tool. The end-goal will be to dump CubeCoin on CubeBit investors, and exit quietly with what’s left of invested funds.
This exit scam has played out over and over again within the MLM crypto niche.
On the regulatory front pay attention to these individuals:
Despite offering securities to US residents through CubeBot, CubeBit is not registered with the SEC. Not withstanding pyramid schemes also being illegal as per the FTC Act.
Outside of the US CubeBit is just as illegal. The company isn’t registered to offer securities in any jurisdiction.
As with all MLM Ponzi schemes, once affiliate recruitment dies out so too will new investment.
This will starve CubeBit of ROI revenue, eventually prompting a collapse.
The math behind Ponzi schemes guarantees that when they collapse, the majority of participants lose money.