Joining a Cryptocurrency Based MLM Company? Think Again!
If you’ve ever come across a Multi-Level Marketing (MLM) company that deals with Cryptocurrencies (Crypto), BE CAREFUL because you might be taken for a ride.
There are Two Types of Crypto MLM companies we are going to discuss, and they are companies that:
As someone who has been involved in both types of companies, and has seen many cases where people got cheated, I can’t help but break this news to you…
Most Crypto MLM companies are either fraud or pyramid schemes!
Let me prove it to you in this short article.
#1 Crypto MLM Companies in the ICO Stage
Good examples of these companies are OneCoin, Bittrain, Platincoin and GCR Marketing.
But let’s take GCR Marketing as an example.
GCR Marketing is the first ever “Cryptocurrency company” that offers a home-based business opportunity through the MLM structure.
The Company has created its own Cryptocurrency called the GCR Coin (Global Currency Reserve), and it started with many false promises. The Company claimed that the GCR Coin would:
- Double, triple, 10x or even 50x the initial investment;
- Be used to buy groceries, necessities, food, etc., and a shopping mall will be built specifically for members to spend their GCR coins;
But these never happened.
You’ll be amazed by how quickly the company rises and falls within a short period.
- GCR Marketing was founded in mid 2014;
- The Company promised to list the GCR coin on a Crypto exchange in June 2015;
- The listing was delayed multiple times it finally got listed on August 2015 – Many members were panicking during this period of hiatus;
- The price of the GCR coin tanked almost 94% within a few days since its inception;
- Many complaints were filed, and the SEC steps in to investigate;
- GCR Marketing officially shuts its doors on 31 December 2015;
- Members were logged out of their account as the GCR Marketing site has been blocked.
What have we learned?
If you invest in a new Crypto MLM company, you are not only exposed to the volatility risk; you are betting on the integrity of the founders.
There is a possibility that the founders will run away with your money, and all talks of getting their Cryptocurrency listed are lies.
When a company makes promises, do not blindly believe them.
But let me make it clear, I am not telling you to immediately tag any Crypto-based multi-level company as a scam.
But do a proper research about the company.
Exercise a right amount of skepticism.
For example, about the claim of building a shopping mall that uses only GCR coin, there are many variables to consider.
To make the shopping mall ecosystem work, the retailers have to agree to use only GCR coins, and not only that, but the suppliers have to also agree with the payment method as well.
You can’t expect the retailers to pay cash to their suppliers, while they receive GCR coins that can’t be exchanged for anything, right?
So, be mindful when you come across these “exciting”, “groundbreaking” MLM companies, because most of the time, they can’t keep their promises.
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#2 Crypto MLM Companies That Offers Crypto Mining or Trading Service
This is the type of companies that do not offer anything special other than helping you mine or trade your Cryptocurrencies.
Companies that fall under this category are Bittrain (again), Zarfund, AirBit Club and USI Tech.
Let’s take USI Tech for example.
It offers its members to buy their trading package where they promise you a 1% day compounding return. But the catch is you have to keep your money with them for 140 days.
And, if you wish to recruit others to join USI Tech, you will earn a 10% commission on whichever package your recruit buys.
True enough…
I invested and started to promote USI Tech.
It was promising at the start as I saw immediate growth to my account.
However, things went south after a couple of weeks. The Federal Trade Commission banned USI Tech as it is deemed to be a pyramid scheme.
To explain the USI Tech pyramid scheme in one sentence…
The “compounding 1% daily interest” that they promise was not generated through any trading activities, it was merely from the recruitment activities.
After the FTC banned USI Tech, I never saw my initial capital again.
It was only about $300+, but some people invested tens of thousands into this company, and in a blink of an eye, they lost it all.
Related: How To Choose A Good MLM Company
Final Words
The next time you come across any Crypto MLM opportunities, I would advise that you be on high alert. Most of these companies (not all but most) are pyramid schemes.
Be wary of what the opportunity offers, and always exercise skepticism. And when in doubt, do not join or invest any money.
Cryptocurrencies are meant to serve a purpose.
Read and analyze their whitepapers, and think if it has a good business model. If a Crypto MLM company offers something that is “too good to be true,” then it probably is.
Before I end, you might be interested in a way to make money by doing something you love. There is a link at the end of this article that will teach you how to turn your passion into profits.
Meanwhile, would you help me inform other people on how to make a good decision before joining a Cryptocurrency based MLM company?
Until here, I hope that you stay safe in the Cryptocurrency world.
Your pal,
Jack
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