This article is inspired by the insights I have studied of Kevin Thompson, founding partner of Thompson Burton PLLC of Nashville, Tenn.
Does Bitcoin work with MLM?
This is a tough one. I always think of Seth Godin’s comparison of a “Meatball Sundae.” Just because I like ice cream and meatballs doesn’t mean I should mix them. The same goes for cryptocurrency MLMs. Although the two can theoretically go together, it’s tricky to get it right.
The purpose of this article is to serve as a warning and highlight potential pitfalls.
I think there’s a sketchy cryptocurrency situation going on in the network marketing industry that’s kind of like what happened with Zeek Rewards. It seems like the problem has gotten even bigger, with promoters both at home and abroad, especially in Dubai over China these days, taking advantage of Bitcoin’s complexity and legitimacy to lure investors. They’re convincing people to invest in new alt-coins by promising big returns, like Bitcoin’s rise. But a lot of consumers don’t really understand cryptocurrency and are making bad investment choices. There’s also a closed nature to many of these new coins, making it hard to confirm if they’re legit. I’m worried these programs could be sneaky Ponzi schemes, where the coin’s value comes solely from new people joining the scheme. The promoters often work from overseas to avoid detection and collect lots of money before people catch on. The victims often don’t know much and are easy targets. The SEC has some advice on how to tell the difference between legit cryptocurrencies and ponzi schemes. I hope this article will help educate people and get a discussion going. Here is another great article by Kevin Thompson – Crypto and Network Marketing: A Legal Impossibility?
