When a development or business model is trending, it is attractive to those who want to start in an industry. However, when developments are combined into a single trend, the challenge is even greater.
Such is the case with the Crypto-Ponzi MLM model.
Today, cryptocurrencies and MLM (Multilevel Marketing) are attracting worldwide attention, and it is important to learn to recognize real opportunities in order to avoid fraudulent Ponzi schemes.
Many times, people who advertise or share Ponzi business models do not even know that it is a scam; for this and several other reasons, below we will share with you some of the measures that Ramin Mesgarlou suggests to identify dubious models.
– Most Ponzi schemes have no relation to the cryptocurrencies they promote.
– Only a few tokens are really worthwhile, when it comes to buying, and a vast majority are only a luxury.
But, because of the risks involved, the US Federal Trade Commission (FTC) has banned merging MLM schemes with cryptocurrencies.
In the first instance, paying commissions in cryptocurrency is illegal and against MLM rules. Cryptocurrencies are a form of currency, so paying commissions in a Ponzi scheme is illegal.
Most crypto Ponzi schemes have fees in order to pay commissions. This is called Pay to play, and is against MLM laws.
Some cryptoasset Ponzi schemes claim that their cryptocurrency offering is their product; so they don’t need a physical product. This isn’t true, because cryptocurrency cannot be a product and MLM opportunity without a product is automatically an illegal Ponzi scheme.
In addition, crypto-Ponzi schemes require high sign-up fees, and monthly fees that they use to cover commissions, a fact that automatically makes them Illegal Ponzi schemes and these models usually last between a few weeks or a few months before their website disappears as well.