Multi-Level Marketing Coin

MLM coins are a means of conducting pyramid schemes and fraud in the name of virtual currencies. They have nothing to do with real cryptocurrencies and have no technical support or market value. The purpose of MLM coins is to attract investors to join the membership system and obtain profits through attracting people, dividends, rebates, etc., rather than to achieve value-added through currency supply, demand and innovation. MLM coins usually use some false publicity, exaggerated promises, and vague concepts to mislead investors, such as Mark coins, One coins, Baichuan coins, etc.

Features of MLM Coins

MLM coins mainly have the following characteristics:

1. MLM coins are not tokens issued based on blockchain technology, but are digital points or vouchers. They cannot be traded on formal trading platforms, and there are no open and transparent transaction records and market conditions.

2. The issuance and circulation of MLM coins are completely controlled by MLM organizations. They can adjust the issuance volume, issuance speed, price and other parameters at will to meet their own interests, regardless of the rights and interests of investors and market rules.

3. The income source of MLM coins is mainly the entry fee of new members and the renewal of old members, rather than the increase in the value of the currency itself. MLM organizations will set various levels and conditions, require members to continuously recommend new people to join, and give a certain percentage of commissions or rewards. This model is unsustainable. Once the growth of new members stagnates or decreases, the MLM organization will close down or run away, causing investors to lose all their money.

4. MLM coins lack real application scenarios and community support. They are only used as circulation tools within MLM organizations, rather than as a general payment method or value storage tool. MLM coins do not solve any real problems or create any social value. They are just empty symbols.

How to Identify MLM Coins?

To identify and avoid MLM coins, investors need to do the following:

• Enhance the basic knowledge of cryptocurrency and blockchain technology, understand their principles, characteristics, applications and development trends, and do not blindly follow the trend or seek huge profits.

• Choose a trading platform carefully, and give priority to platforms that have formal licenses, good reputation, are safe and reliable, and do not trust unknown platforms or platforms of MLM organizations.

• Carefully evaluate the value of the currency, check the currency's white paper, official website, community, development team, partners and other information to determine whether the currency has innovative, practical, scarce and other value factors, and do not believe in empty propaganda or promises.

• Keep in mind the investment risks, allocate funds and time reasonably according to your risk tolerance and investment goals, do not invest an amount or time beyond your tolerance, and do not participate in any form of pyramid selling activities or recommendation systems.