Correct. However, existing accounts can still be used for the Recruit-A-Friend program for up to 30 days after creation. As such, it's possible to set up a closed loop, where every new account is linked to another new account - effectively making every account both a recruited one, as well as a recruiter.
As for granting levels, Mirai is indeed right about how this works. Depending on your own preferences, you can pick and choose how you want to spend those levels though - for example, manually levelling each team halfway (as the lower levels go by faster), and then bumping them to 90 with granted levels. I've recently done some things like that to suit my needs as described here. Although that makes mention of level 85 being the limit (as I did my levelling spree shortly before it got silently bumped to 90), you can apply the same principles.
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