Neo Mining & Technologies Review: Etherum mining investment contracts
Neo Mining & Technologies provide no information on their website about who owns or runs the business.
In fact at the time of publication, the Neo Mining & Technologies website is nothing more than an affiliate login page:
The Neo Mining & Technologies website domain (“neominetech.com”) was registered on September 23rd, 2017.
Jesus Osuna is listed as the owner, with an address in the US state of California also provided.
Further research reveals Neo Mining & Technologies marketing videos credited Jesus Osuna (right) as CEO of the company.
Osuna began promoting Neo Mining & Technologies in mid 2017, around the same time he began talking about cryptocurrency on his social media profiles.
In 2015 Osuna co-founded Uvodi, a fitness-based income opportunity.
As of today Uvodi is still in business (website is up), however the MLM opportunity appears to have been discontinued.
Whether Osuna (right) paid back the $1.4 million he reportedly stole from TelexFree victims is unclear.
Read on for a full review of the Neo Mining & Technologies MLM opportunity.
Neo Mining & Technologies Products
Neo Mining & Technologies has no retailable products or services, with affiliates only able to market Neo Mining & Technologies affiliate membership itself.
The Neo Mining & Technologies Compensation Plan
Neo Mining & Technologies affiliates invest in ethereum mining contracts, on the promise of a passive two-year ROI.
- $350 = 14 MH/s mining contract
- $1750 = 70 MH/s mining contract
- $3500 = 140 MH/s mining contract
Neo Mining & Technologies Affiliate Ranks
There are five affiliate ranks within the Neo Mining & Technologies compensation plan.
Along with their respective qualification criteria, they are as follows:
- Affiliate – sign up and invest in a Neo Mining & Technologies mining contract
- Bronze – recruit three affiliates who invest in at least one mining contract each
- Silver – generate four personally recruited Bronze affiliates in your downline
- Gold – generate four personally recruited Silver affiliates in your downline
- Platinum – generate four personally recruited Gold affiliates in your downline
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.
Neo Mining & Technologies pay residual commissions based on sales volume generated throughout the binary team.
Sales volume is tracked in points and generated when recruited binary team affiliates invest in mining contract.
- a $350 mining contract generates 30 points
- a $1750 mining contract generates 150 points
- a $3500 mining contract generates 300 points
At the end of each day Neo Mining & Technologies tallies up new investment volume on both sides of the binary team.
For affiliates who have invested in the $350 and $1750 mining contracts, they receive a $150 commission per 150 points matched on both sides of their binary team.
For affiliates who have invested in the $3500 mining contract, they receive $1 per 1 point matched on both sides of their binary team (no minimum).
Note that all Neo Mining & Technologies affiliates are capped at $10,000 daily in residual binary commissions.
To qualify for residual binary commissions a Neo Mining & Technologies affiliate must have directly or indirectly recruited two affiliates under them (one on either side of the binary team).
Residual Commissions (unilevel)
A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):
If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.
If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.
Bronze and higher ranked affiliates receive residual commission when unilevel team affiliates invest in mining contracts:
- Bronze affiliates receive $10 per $350 contract, $50 per $1750 contract and $100 per $3500 contract
- Silver affiliates receive $25 per $350 contract, $125 per $1750 contract and $250 per $3500 contract
- Gold affiliates receive $35 per $350 contract, $175 per $1750 contract and $350 per $3500 contract
- Platinum affiliates receive $45 per $350 contract, $225 per $1750 contract and $450 per $3500 contract
Platinum Rank Achievement Bonus
Neo Mining & Technologies affiliates who qualify at the Platinum rank receive a BMW I8 car.
There is also a cash percentage alternative offered for affiliates who don’t want the car.
Joining Neo Mining & Technologies
Joining Neo Mining & Technologies is tied to a $350, $1750 or $3500 two-year ethereum mining contract.
In order to earn commissions and a monthly ROI, Neo Mining & Technologies affiliates must maintain at least one active mining contract.
Neo Mining & Technologies accept PayPal, ethereum and bitcoin.
To gauge whether Neo Mining & Technologies mining contracts were competitive, I compared them to equivalent Genesis Mining ethereum contracts.
Genesis Mining sell ethereum contracts for
- $29.99 for 1 MH/s ($29.99 per MH/s)
- $869 for 30 MH/s ($28.96 per MH/s)
- $2799 for 100 MH/s (27.99 per MH/s)
Neo Mining and Technologies’ sell their contracts for $25 MH/s.
When you consider Genesis Mining’s ethereum contracts are so popular they’re regularly sold out, Neo Mining and Technologies cheaper contracts appear to offer extremely good value.
My question is how are Neo Mining & Technologies affording to undercut one of, if not the biggest ethereum cloud mining company and pay out hundreds of dollars in recruitment commissions on top of that?
From an MLM regulatory perspective there’s no getting around Neo Mining & Technologies operating as a recruitment-driven pyramid scheme.
Only affiliates can buy contracts, meaning Neo Mining & Technologies affiliates are getting paid to recruit new affiliates.
When you consider the ROI nature of Neo Mining & Technologies two-year contracts, it’s pretty clear-cut the company is offering an investment opportunity.
This is even more obvious upon consideration of how Neo Mining & Technologies is being marketed:
[2:40] Do keep this in mind, that you will get back the amount you paid for your service.
Within two years you will definitely, you will definitely make way more than $350, OK?
To illustrate the absurdity of claiming otherwise, here’s an excerpt from the marketing video linked above two minutes before Leonel Gonzales promised everyone they’d make more than they spend on contracts over two years:
[0:46] Do keep one thing in mind, this is not a company where you invest um, as in like you will consider (it) an investment.
We sell services. If you’re part of this team, if you’re part of Neo Mining & Technologies please do not promote this as an investment company.
If we take a look at Neo Mining Technologies
investment services offering, affiliates sign up and pay a fee, on the promise of receiving more than they paid over two years.
No matter how you dress it up, Neo Mining Technologies affiliates hand over money on the expectation of a passive ROI over two years.
That’s a security, which in the US requires registration with the SEC.
As at the time of publication neither Neo Mining & Technologies or Jesus Osuna are registered with the SEC.
This makes Neo Mining & Technologies mining contracts an unregistered securities offering.
Offering unregistered securities to US residents is illegal.
With that in mind, consider a Neo Mining & Technologies marketing video uploaded to YouTube on December 18th, 2017.
In the video Jesus Osuna reassures viewers that Neo Mining & Technologies is a “real company”.
[00:09] We are a real company. We’re traceable. We’re transparent and we want the people to know that that’s one of our main qualities here.
That we don’t want to have to hide or run away from everything, so we’re really traceable. And we want every single customer that comes into our company to know that.
And the reason being behind that is because in this industry, unfortunately since it’s so new, so people like to take advantage of the industry as well as people.
And we definitely do not represent that and the blockchain technology in that form.
We are a real company, established here in silicon valley.
Osuna goes on to claim Neo Mining & Technologies is “registered in California” and pulls out incorporation documents.
The good news is you can verify Osuna’s claim on the California Secretary of State website by punching in “neo mining”.
The bad news is that while Neo Mining & Technologies are authorized to offer shares, there’s nothing about their mining contract securities offering in the incorporation documents.
Furthermore securities are regulated in California at the state level by the California Department of Business Oversight.
As far as I can tell Neo Mining & Technologies are not registered in any capacity with the Californian DBO to offer securities in California.
In summary, Neo Mining & Technologies California incorporation is meaningless from a securities regulation perspective.
Why is being registered to offer securities in California and the US important?
It requires Neo Mining & Technologies to file explicit proof of external ROI revenue generation.
Saying your generating ROI revenue to pay affiliates with via ethereum mining is all very well, but due-diligence by any responsible investor would require full disclosure of mining taking place and generating revenue, which is then used to pay affiliates with.
SEC registration would require Neo Mining & Technologies to disclose that information to the general public.
This is critical not only for basic due-diligence of any passive investment opportunity, but also to certify Neo Mining & Technologies are not recycling newly invested funds to pay off existing investors on any level.
In summary, what we have with Neo Mining & Technologies is a company openly incorporated in California, offering US residents a two-year passive ROI on fixed deposits – coupled with a pyramid recruitment MLM business model.
None of which is registered with the appropriate authorities.
Yeah, this probably isn’t going to end well.