Here’s some great viewpoints on the combination of Cryptocurrency and MLM from an MLM lawyer.
Source: Bitcoin, Cryptocurrencies and MLM by Kevin Thompson of Thompson Burton lawyers.
Don’t get caught out!
Just because your friend says it’s good to get in early it does not make it good. Greed takes over many people and often their sense and logic goes out the window.
Kevin: “Understand, in order for a Coin to have real legitimacy, there needs to legitimate usage in the marketplace. Consumers need to do business with the coins, transferring funds to merchants in exchange for products. As the Coin’s usage increases, its value will grow. If there’s no usage, there’s no real way to measure value.”
SEC and Virtual Currencies
The SEC has written a solid article on the subject titled Ponzi Schemes Using Virtual Currencies.
The SEC writes, “We are concerned that the rising use of virtual currencies in the global marketplace may entice fraudsters to lure investors into Ponzi and other schemes . . . These schemes often promise high returns for getting in on the ground floor of a growing Internet phenomenon.”
The SEC provides several red flags to watch for when reviewing one of these programs.