What Is CubeBit? Another Infamous Ponzi Scheme From 2020!

CubeBit is a MLM or multi-level marketing company that operates in the cryptocurrency investment industry. 

Right off the bat, their landing page does not provide us with any information as to who owns the company but their marketing videos say otherwise.

The founders of the company are Konstantin Janke and Romel Gumiran, though they are downplaying their roles a fair bit here. Janke was a newly-appointed CEO who works for Big Eye News, a company that claims to “provide high-quality and informative content”. 

Gumiran, on the other hand, is the man behind Nexus Chain, a cryptocurrency Ponzi scheme that went under months before. In CubeBit, he’s the Master Global Ambassador (whatever that means). Gumiran is based in the Philippines but is currently residing in the UAE.

Here’s what we know about the site: 

The domain name was registered in 2018 but was updated in April 2020

The domain name was taken over by the owner of CubeBit in 2020

Domain name registration was private so no further information could be found

As you can see, there are a few things wrong with what they have to offer and what they’re running. But we’ll get more on that in the following sections. 

CubeBit Product Line

CubeBit offers no retail products or services despite being a MLM company. This is the first of many red flags that we found on their program. 

The only thing they have to offer is membership into their income opportunity, which you can take advantage of by investing in their program.

Does The Product Work?

If you take a closer look at CubeBit, you’ll see that it’s an extension of Gumiran’s flopped Nexus Chain company. On their website, Nexus Chain claims to provide “offshore company registration” and “premium MLM solutions”. The website’s Alexa ranking is about 4 million, which is more than enough for us to conclude that the website is comatose or dead. 

We don’t know if Gumiran is working alone or with other people with Nexus Chain, but he does work with other people on CubeBit. 

Going through their compensation plan, they’re really nothing more than a recruitment-based Ponzi scheme. 

There are different aspects of CubeBit that make it a comprehensive program, but it’s not worth going into because these are just fronts for pseudo-compliance and they have nothing to do with the MLM opportunity.

The only way to make money from this program is to recruit people into the program. Their company is fraudulent because you have to sign up, pay the fees, and earn commissions when you recruit others to do the same. 

How To Get Started with CubeBit?

CubeBit’s membership is available at these levels:

1. Lite – €49 EUR
2. Elite – €299 EUR
3. Premiere – €799 EUR
4. Prestige – €1299

Like all pyramid schemes, the more money you throw in, the more money you make. 

CubeBit Compensation Plan

CubeBit’s compensation plan is broken up into recruitment commissions and other incentives. 

The recruitment commissions are tied to Lite and Elite memberships: 

CubeBit Lite affiliate membership costs €49 EUR

CubeBit Elite affiliate membership costs €299 EUR  

CubeBit Direct Recruitment Commissions

You earn direct commissions when you recruit members into the program. A €5 EUR commission is paid on recruitment of Lite members. €30 EUR is paid on recruitment of Elite members.

CubeBit Residual Commissions (binary)

Their binary compensation structure is built with you at the top of the team, with two positions split below you. This will be your first level. 

The first levels will then split into two positions, giving you four positions. This is now your second level. 

This goes on infinitely and branches out to more positions as the levels increase. Residual commissions are paid out on generated sales volume across the teams:

1. Lite member recruitment generates 50 BV
2. Elite member recruitment generates 300 BV

CubeBit pays out these commissions 4-times a day based on their time-sensitive phase. 

1. Lite members are paid 20% of matched BV on their first phase and 15% of matched BV on their second phase
2. Elite members are paid 25% of matched BV on their first phase and 20% of matched BV on their second phase

These two phases correspond with morning and evening timing, so you earn on two rotating pay cycles:

Lite members 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 members 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

CubeBit Residual Commissions (2×10 matrix)

This is another binary compensation structure that caps out at 10 levels. 

These commissions are paid out on percentage of fees paid across the 10 levels:

• 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%

CubeBot (Trading Bot)

This is the passive income opportunity that CubeBit talks about in the landing page. This is their trading bot that trades for you and earns you daily and monthly profits. 

But the details on the returns and profits are not disclosed anywhere.

#1 Securities Fraud

From a regulatory standpoint, these individuals are offering securities within the USA. Note that these are US Residents and that they are not registered with the SEC to carry out these transactions. 

This means that they’re committing securities fraud on top of operating as a pyramid scheme. 

#2 Securities Warning In The Philippines

CubeBit received a warning to operate in the Philippines when the SEC labeled them as a Ponzi scheme. The warning issued by the SEC points out the same issues that we have with the program: 

1. Recruitment is the main source of income.
2. Passive income opportunity carried out by trading, which is not registered with the SEC.

The warning even went as far as tagging all of the people on this photo for their involvement and that anyone caught promoting the program will be fined heavily and face serious jail time.

#3 Ponzi Scheme!

There’s nothing else to say here except that it’s a Ponzi scheme. All the clues are there on their compensation plan.

There’s nothing to like about CubeBit because it’s a BS cryptocurrency investment Ponzi scheme. 

CubeBit is every bit of a Ponzi scheme and there’s just nothing legitimate going on around here. The fact that they’ve already received a warning against them by the SEC in the Philippines means that authorities are now catching up to their shenanigans. 

Gumiran and the rest of the management team won’t be able to hide very long. But even then, they’re only going to prevent member withdrawal and rebrand the program in the coming months.

I'm not a fan of MLM, not because it's illegal or not profitable, but because of all the restrictions and the expensive costs involved.

Instead, Affiliate Marketing is my top recommended business model for anyone to make money online.

The reason is simple...

• You don't have to recruit anyone to make money
• You have the freedom to promote any products you want and not being restricted to only promote the products from one MLM company
• It's Free to get started

In fact, with affiliate marketing...