Nope, this is not pyramidal schemes. Just a way of promoting his exchange. They will give you some rewards in exchange for using their platform and if they actually pay the promised reward there is nothing shady. the other thing is that it is a very small amount and the high fee will probably eat all of the earnings.
it certainly doesn't pay to do the whole procedure because of the potential $5 profit.
It is a very dodgy way to promote the exchange! First they pumped that KICKICO shitcoin, they they sent their useless and worthless locked tokens to hundreds of thousands of ETH wallets without people actually asking for them or doing anything, just basically "showing them down their throat". it certainly doesn't pay to do the whole procedure because of the potential $5 profit.
Maybe they are not pyramid scheme in strict sense, but they certainly used pyramid scheme marketing techniques. I mean, I don't know about any legit exchange that has referral system with 10 levels of depth. Whats even more dodgy is how they presented the possibilities of passive income via referral system.
No wonder that current price is around ~1 satoshi and even that is too much for this shitcoin. I wonder if anyone managed to successfully unlock those 888,888 airdropped tokens.