Last spring in 2005, people across the planet were turning their attention to DxInOne, an online - offshore investment concern based on the tropical island of Vanatu. Although it had visions of other pursuits in the works, at the time DxInOne`s claim to fame was (and is) its role as an emerging e-currency broker.

Why the excitement?

Because people were able to realize tremendous growth in the DxInOne ?portfolio? system. Deposits of, for example, $1,000 were growing to ten times that amount in only a couplee of months. Not only was that true, but more importantly people were also cashing money out of the DxInOne system. Bigger players were able to move hundreds and thousands of dollars out of DxInOne on a near-daily basis.

These amounts always seemed to be far in excess of what these members had actually put into the system.

This went on for months. As an offshore entity, DxInOne didn?t have to disclose anything of substance regarding how they were able to accomplish this. The notion of taking $1,000 from an investor, and giving him back $5000 in payments over the next several months didn?t seem to make economic sense. But the gig was working. People really were getting paid.

As June hit the managers at DxInOne had begun to assume a near mythological status: they were seen by many as enigmatic geniuses who held their cards to their chest and made the seemingly impossible actually occur (which is to say they paid, and paid big).

Under these euphoric circumstances people signed up to DxInOne in droves. Numerous courses in how to learn the complex DxInOne system were plastered all over investment message boards. Everybody was getting involved, it seemed - even the Rich Jerk.

Why not, when a deposit of a few thousand could rapidly balloon into a hundred thousand or two? At this level the DxInOne system paid out dividends daily amounting to thousands of dollars. This was money that could be cashed out (in about 3 days) or reinvested to increase portfolio growth further increase one?s DxInOne portfolio balance.

An important point: this daily growth was regulated by the DxInOne managers, averaging .30% to .40% daily (or about ten to twelve percent monthly) during the Glory Days of winter - spring 2005. No one knew the formula the DxInOne demigods applied to determine the daily growth, but that was okay - they had, after all, become mythological beings.

But again, whatever the formula was it couldn?t have much to do with basic economic theory - that much was obvious to many. By extension, the DxInOne formula for daily growth was widely presumed to be more a reflection of their secretive business model than it was an indicator of normal market forces, namely supply and demand. Plainly put, you just can?t be giving out thousands in cash again and again to people for doing nothing, at least if if they only put in hundreds to begin with.

Then reality kicked in, which I shall hereinafter refer to as ?The Great Crash of Summer 2005?. All of a sudden it was impossible to move money out of the system.

Curiously, the daily growth was only marginally affected. Accounts were still growing by about .20% a day during the worst of times, but soon the averages seemed to find their way back up to the .30% level. This is very robust growth, amounting to about ten percent a month. That kicks ass on just about everything, including the growth of mainland China?s economy.

Now think about this: How can a company grow its investors? portfolios by 10% a month when it takes months to process an request for money?

Several answers come to mind. The most obvious is that this can happen because the portfolio growth has nothing to do with the actual health of the system: members can?t take their money out in a reasonable amount of time because there simply isn?t enough monetary supply to meet the demand for cash. We`ll return to this question later.

So, things with this company called DxInOne were going well, then there was a crash in the Summer of 2005 to whereby people couldn`t get any money out of the system. This has been going on for about seven months now.

In fairness to DxInOne, an article like this should cast light on DxInOne?s overall vision as it is an ambitious one that could generate the long-awaited correction. In fact, 2006 will see the roll-out of several new business which will be integrated into the overall DxInOne ?economy?. I will discuss these in a subsequent ?Part? of this article, but for now I must address thornier matters.

In the next Part of this article I will discuss the thorniest matter: Why The Crash now threatens to completely erode members "Portfolio" balances.