Two of the fastest-growing and most profitable industries in the world are Profit Schemes MLM & Cryptocurrencies. When something is so hot, this invites everybody into that space including bad actors with bad intentions for quick profits aka scams and Ponzi schemes.

That said not all bad companies are being promoted by bad people as most participants in these illegal schemes don’t even know that they are involved in a Ponzi Profit Schemes Disguised

Today word Cryptocurrency is the hottest new buzz word and its technology is the future. The challenge is two folds.

Most crypto Ponzi Profit Schemes Disguised have nothing to do with the cryptocurrencies they promote.

Not all Cryptocurrencies are equal even if it was real tokens on a blockchain.

Vast crypto tokens are scooters and a few are luxury vehicles even though both are in the transportation industry.

Using the word cryptocurrency is cool but before you get too revved up, you need to be educated to be able to tell the good and strong from the bad and the weak that will go to zero.

Let me start by stating a fact that all Crypto MLMs are illegal according to FTC. I did an extensive video on this topic a couple of years back called “What is MLM and how to select the right company”. Click the link to see this educational video that highlights all the advantages of MLM over other industries as well as how to avoid the wrong MLM opportunities…

Here are some of the reasons why the FTC has ruled against MLM and cryptocurrency mergers.

Pay commissions on cryptocurrency are illegal & against MLM rules. A cryptocurrency is a form of currency so paying commissions on currency is an illegal Ponzi scheme.

Pay interest on investment is also illegal in MLM and in OSFI laws which most crypto Ponzi Profit schemes offer to attract more funding.

Most crypto Ponzi Profit  schemes have fees to be able to pay commissions. This is called PAY TO PLAY and it is illegal and against MLM laws.

Of course, these crypto Ponzi Profit schemes state that their Crypto offering (even if there is one), is their product so they don’t need a physical product. This is false and currency hence its name cannot be a product and MLM opportunity without a product is automatically an illegal Ponzi scheme.

Simply, how I explain the Crypto Ponzi scheme and why they die so quickly is because the only way to be able to add an MLM compensation plan to a product is when that product has a stable price with established margins that guarantee profits for the company and funding for the distributor compensation plan.

This cannot be established with a volatile currency that has no security value. This is why the gold and silver MLM Ponzi Profit schemes of the 80’s died so quickly. To make up for the lack of profits and margins, Crypto Ponzi Profit schemes add massive enrolment fees and monthly fees to cover the commissions which makes them illegal Ponzi schemes. Generally, these Ponzi’s last a few weeks to a few months before the website goes offline forever.

To save you my 33 years of full-time MLM experience and 1000 hours of crypto research, I have created a simple 10-step scam test that you can use to quickly establish a crypto Ponzi scheme titled Forensic Networker’s 10-step crypto MLM scam test.

To start with the vast majority of Crypto Ponzi Profit schemes do not have Cryptos they promote. They are merely just a mobile app with numbers in the back office.

You will enjoy looking at the numbers and massive gains until you actually decide to take out your crypto only to realize there is no response. Once the frustration rises with the participants and the flow of funds stops, the app goes offline for good.

In a very unlikely event that the crypto Ponzi scheme actually has a token on a blockchain, it still doesn’t make it legal or make the Coin valuable. The vast majority of the thousands of cryptocurrencies on exchanges are considered as industry term “SHIT COINS” with no purpose or use case so they are worthless.

Ramin’s 10-step crypto’s MLM scam test:

• Ask the company what is the blockchain technology of the coin/token? This eliminates 99% of the so-called “Crypto MLMs” because there is none. It’s a mobile app that will shut down when people start to complain and money stops flowing in.
• Ask them to send you the crypto to your independent private wallet like Meta Mask as opposed to their app’s back office. They will make excuses because it doesn’t exist until they close the app.
• Ask them where is the head office? Doesn’t exist.
• Who are the owners and developers? Unknown
• Which exchange is the token on? None
• What are the use cases of the token/coin? None
• Where is the white paper? None or badly written.
• What are tokenomics? None is vital to create utility for the constant demand of the token to maintain and increase value over time.
• For lack of substance, crypto Ponzi companies use well-known brands as credibility that has nothing to do with their token – LV, Bitcoin, Ethereum, etc.
• Make massive claims that they will be the biggest Cryptocurrency, use big income and value claims.

They ask you to invest your life savings now while the token is cheap and the company is new. The fact is there are risks in crypto assets even in the best of them.

I am the biggest fan of Cryptocurrencies and am heavily invested in them and I am here to tell you that legit cryptocurrencies do not and cannot merge with MLM compensation plans.

Much like good MLM products’ benefits, legit Cryptocurrencies offer and focus only on their use cases such as store of value (Bitcoin), financial transactions and smart contracts (DEFI), stable coins, or utilities that are needed as use cases. You don’t hear these technical terms in crypto Ponzi Profit schemes because they don’t exist but what you do get is tons of illegal and baseless promises of riches that will lead to financial ruin.