BuddyX, an online platform, raises concerns about the lack of transparency about ownership and executive information on its official website. The domain, “buddy.io,” was registered privately on July 21st, 2023. Notably, prior to this date, the company was known as BuddyCorp, which appears to have collapsed, resulting in the foundation of BuddyX as a reboot.
During our inquiry, we discovered that BuddyX’s marketing materials name Mahesh Sharma as the founder. Rather than claiming ownership, Sharma refers to himself as the “head of marketing” on his LinkedIn profile. Despite claims that Sharma has been involved in multi-level marketing since 2011, his LinkedIn profile lacks detailed facts.
Further investigation into Sharma’s background exposes his involvement with Billionex World, a collapsed MLM crypto Ponzi scheme in 2017, and later with Digiex, a staking model Ponzi built around the Digix coin that appears to have collapsed around 2020. Sharma’s post-Digiex activities are unclear.
BuddyX’s website indicates that its headquarters and activities are headquartered in the UAE, which is consistent with its Facebook location of Dubai.
The lack of regulation or the presence of poor regulation is a huge red flag. It means BuddyX is a scam and most likely, an illegal operation.
Companies offering investment services or opportunities without having a license can vanish without leaving a trace. Furthermore, the lack of a regulatory license allows them to get away with it and face no legal consequences.
That’s why it’s vital for you to always check a company’s regulation status as well as its license information. The presence of a license allows consumers to reach out to an authority if something goes wrong.
In the case of BuddyX, victims have nowhere to go due to the absence of a watchdog or license.
You should ask yourself the following questions when you come across a new investment firm or opportunity:
- Does the investment provider maintain transparency about its CEO?
- Do they have a license from a renowned regulatory authority?
- If the need arises, can I reach out to an authority to report this company as a scam?
BuddyX does not provide any actual retail products or services. Instead, affiliates are entirely dedicated to marketing BuddyX affiliate memberships. This lack of retailable products raises questions about the company’s long-term viability and authenticity.
BuddyX affiliates invest in BDYX tokens at $100 increments. Each affiliate may invest up to five hundred $100 positions. Notably, a $1 monthly fee is levied for each $100 investment position.
Passive profits on BDYX investments depend on how long an affiliate refrains from withdrawing:
- No withdrawals for 30 days result in a 5% return on investment (ROI).
- No withdrawals for 60 days yield a 10% ROI.
- No withdrawals for 120 days yield a 20% ROI.
- No withdrawals for 180 days result in a 30% ROI.
Effectively, BDYX token investment returns amount to 5% every month. These rewards are handed out in BDYX and must be converted using an internal exchange called BuddyDex. Once a total of 300% returns are attained, reinvestment is required to continue earning, with the reinvestment equal to or greater than the previous investment.
BuddyX’s MLM strategy focuses on recruiting affiliate investors. The pay plan is divided into ten affiliate ranks, each with its own set of qualification requirements. Ranks vary from Executive to Diamond Star, with criteria including the number of affiliates recruited and the amount of downline investment earned.
Referral commissions are paid for investments made by personally recruited affiliates. Rates vary according to the number of affiliates recruited. Residual commissions are provided via a unilevel compensation scheme, with percentages based on the affiliate’s rank and level in the unilevel team.
BuddyX offers a matching bonus on downline profits throughout three levels of recruitment. A Fast Start Bonus is granted if an affiliate recruits seven investors in the first ten days, resulting in a 50% reimbursement of their initial investment.
The Bumper Bonanza will reimburse an affiliate’s initial investment in full if they recruit three affiliates who qualify for the Fast Start Bonus within 30 days. The Rank benefit is a downline investment benefit based on volume milestones, with percentages increasing as investment volume increases.
However, it’s worth noting that many scammers disable their payment channels before shutting down their operations.
They might give you multiple reasons including:
- A technical error
- A glitch in their system
- Banking issues
- A “hacking attack”
And many others.
But in 9/10 cases, the scammers actually stop making payments and keep the money to themselves. Hence, the payment methods we discussed here might not work.
If you want to get your money back from a scammer, you’d need to file a chargeback.
When it comes to scammers, you should only measure the quality of their customer service if they respond to your complaint.
In the beginning, scammers tend to remain very accessible.
This means their representatives will keep calling you until you invest with them. Furthermore, they will act friendly and make it seem as if you’re one of their most valuable consumers.
However, they do all this just to win your trust.
Scammers understand that in order to convince someone to give them a large sum, they will need to seem like a friend.
Nevertheless, when you have invested a considerable amount of money and need to get it back, their customer support will become inaccessible.
All of a sudden, their numbers would either stop responding or become unavailable.
Still, they might remain accessible to convince you to invest further. Also, they might begin by making a few excuses regarding your payment.
However, in the end, the customer support won’t resolve your issues and become increasingly unavailable.
It’s worth noting that many scammers tend to purchase fake reviews. Buying fake reviews has become extremely easy and it’s a multi-million dollar industry.
Scammers like BuddyX tend to purchase fake reviews for their online profiles to make themselves seem more credible.
TIME Magazine investigated the fake review industry and estimated it to be worth more than $150 million. Certainly, there are a ton of scammers who want to seem legitimate and a bunch of fake reviews is the most effective way to do so.
That’s why you shouldn’t trust BuddyX reviews easily.
It’s easy to identify fake reviews as well. You should look out for 5-star reviews that are posted by temporary accounts (profiles which only posted 1 or 2 reviews on the platform). Also, you should see if the positive reviews share any detailed information about their experience with the firm or not.
In the case of BuddyX, chances are, you wouldn’t find many legitimate reviews.
Another prominent way scammers like BuddyX enhance their credibility is by burying negative reviews and complaints under a lot of fake reviews.
This way, when you’ll look up “BuddyX reviews”, you might not find many complaints. Or, you might find them buried within numerous reviews praising BuddyX.
You should always look out for consumer complaints. In the case of BuddyX, the most common complaints I found were about:
- Poor customer support
- Delays in payments
- High fees and charges
- Lack of transparency regarding their leadership team
- Aggressive sales staff
Do you have a similar complaint about BuddyX? You can share your complaint in the comment section or submit an anonymous tip.
BuddyX is described as a straightforward MLM crypto Ponzi scheme in which affiliates invest in BDYX tokens with the promise of a 300% return on investment. The addition of new participants accelerates returns, while mandated reinvestment preserves the program. The corporation adds other offerings such as Buddy Games, Buddy Meet, and Buddy Esim, however, these do not validate the fundamental Ponzi scheme.
BuddyX is not registered with the Securities and Exchange Board of India or the Securities and Exchange Commission of the United States, which raises regulatory issues.
The company is significantly reliant on new investments for revenue, and the lack of public trading for BDYX tokens raises questions about their worth. when with traditional MLM Ponzi schemes, when recruitment declines, so does new investment, resulting in an unavoidable collapse and substantial financial losses to participants.
BuddyX is an unregulated entity. Although they might fall under the jurisdiction of a watchdog, they don’t have the license to offer financial services to consumers.
The lack of a license means they are not answerable to any regulatory authority. As a result, the people behind BuddyX can run away with your money without any prior notice. You should be extremely cautious when dealing with an unregulated service provider.
The absence of a watchdog also means you cannot report to them to anyone.
Also, due to the absence of specific regulations, there is no provision protecting you from the insolvency of this entity. If they go bankrupt, you won’t be able to do anything about it.
Can You Trust BuddyX?
All the evidence suggests that BuddyX is a scam. If you have lost money to them, there is still a chance you can get it back.
To recover your funds, you’d need to file a chargeback.
Is BuddyX a scam?
Can I withdraw money from BuddyX?
Where is BuddyX Located?
How do I get my money back from BuddyX?
Launch a website/app with a generic name
A website or app with a generic name allows scammers to hide behind common Google search results. Marketing such names is easier as well.
Pay influencers & social media pages to promote the scheme
By getting influencers and social media pages to promote their brand, scammers make their shady company seem more legit than it actually is.
Send thousands of emails and make cold calls to potential victims
It’s common for scammers to buy the contact details of people and spam them through email, phone calls, social media messages and other means.
Make victims feel safe through “small wins”
Such small wins usually include a few payments transferred into the victim’s account. This makes them seem more legitimate.
Convince victims into investing large sums of money
Due to the small wins, the victim is now convinced that the company is legit. Now, the scammers try to manipulate the victim into giving them larger sums.
Disable withdrawals & take down the website/app
Once the scammers have recieved a signicant sum, they either stop responding or cite a technical error to freeze their victims’ funds.
Repeat the cycle
After making the money, the scam will shut down and the people running it will launch another and repeat the cycle.