What is mlm coin? This is a form of taking advantage of users’ ignorance to scam in the crypto market. These mlm coin projects usually operate under a ponzi scheme. If you are a newcomer who does not know anything about this scam, please read all of our article to be able to identify the form of fraud and to prevent it.
1 – What is mlm coin?
This will be split up for interpretation as follows.
Coin is the common name of cryptocurrencies such as bitcoin (BTC), ethereum (ETH), Ripple (XRP), …
MLM many people mistakenly think this is the name of a certain coin but it is not. MLM stands for multi-level marketing, meaning multi-level marketing.
Thus, the concept of “MLM Coin ” refers to fraudulent projects in the field of cryptocurrency in the form of financial trust or escrow.
The nature of coins like Bitcoin (BTC), or Ethereum (ETH) is not fraudulent. Only scam organizations rely on the development of cryptocurrencies to draw some A, B, or C coins to deceive users.
The nature of these mlm coin projects will offer multi-tiered benefits to attract leaders to engage in marketing to involve others in their projects.
The more leaders attract more people to participate, the more they will benefit from the project deducting% for them.
Projects often show huge interest rates to attract people to invest money in investment packages.
When users participate in investing in the interest rate packages of the project, they will have to buy coins such as BTC, ETH, .. and then use these coins for the project owner to hold.
Then the court owner will commit to pay interest monthly to the participant at an interest rate of 20-30% / month or even higher. Most of the interest rates project owners take money from people who come back to pay interest for those who come first.
One fine day the project collapsed (scam), all users who entered later could not withdraw money, meaning that the participant lost money.
2 – Signs identifying mlm coin fraud
The following signs will help you to look out for phishing mlm projects.
You never know who the project team is, do not have any information about them.
Project leaders often actively look to you to entice them to participate.
The project shows extremely high interest rate packages, many times higher than the banks’ interest rates.
The project does not have any practical applications.
The project token has no information on coinmarketcap.com.
3 – Frequently asked Questions
Are all mlm coin schemes scam?: almost all mlm coin projects are scams.
Should I invest in the mlm coin model?: in fact there are many people who know the nature of the project is a scam, sooner or later it will be a scam, but because of greed, want to join to trick people into later to benefit. Ideally, if you already know which project is mlm, you absolutely should not invest to avoid losing money.
What are the mlm coin scam projects?: to mention the ones that have been scammed are Bitcoinnect, Hextracoin, Regalcoin, Gold rewards, …