Except Bitcoin, don’t touch these “coins” anymore!

Author: sanna

The afterglow of the March 15 incident is still lingering, and the companies that were unfortunately listed are still hastily dealing with the "aftermath". Although it has not yet been recognized by the mainstream market, the cryptocurrency industry has been targeted by criminals. Some "virtual digital currencies" that are under the guise of "second tokens" and "copycat coins" and cling to Bitcoin are actually aimed at making money, and they have not even developed "MLM coins" that are only concepts.

JPMorgan Coin (JPM)

Morgan Coin, originally the BBT gold coin minter, was later renamed Beta Coin. The Morgan Coin system cleverly combines digital signatures and blockchains, attracting a large number of early adopters with its low investment, high profits, and an incentive mechanism that offers extra rewards for recommending others to join. The Morgan Coin official website uses a poster of the headquarters building of the American JPMorgan Chase Group, claiming that Morgan Coin was developed by JPMorgan Chase.

Speculators set up various online organizations to attract friends and relatives to join the cryptocurrency trading group, but under the guise of "high returns", Morgan Coin is just a pyramid scheme coin in the guise of virtual currency. In addition, JPMorgan Chase Group of the United States also issued a statement on its Chinese official website: the group has no connection with the Morgan Coin organization worldwide.

OneCoin

OneCoin claims to have inherited the wealth-increasing properties of Bitcoin, but it has more innovative financial thinking and concepts, and its value-increasing speed exceeds that of Bitcoin. OneCoin's profit model is different from Morgan Coin. Its pyramid scheme uses prestige and public contagion to create a false sense of importance and legitimacy, and sets up a "One Awards" bonus system to reward participating members. These members often participate in projects initiated by the organization, and the so-called projects will raise funds for its global foundation. This virtual currency that suddenly appeared claims that after obtaining currency through "mining", it can be sold for cash or "stocked" to increase prices.

When OneCoin was first launched, it was very popular. Its slogans, such as "the next generation of Bitcoin", "one of the mainstream currencies in the future world", and "you can be worth millions in a few years with just a few hundred yuan", attracted a large number of followers who invested crazily in OneCoin in a short period of time. However, unlike decentralized, open and transparent digital currencies, OneCoin does not have an open source code, which poses a great security risk. There is already enough evidence to show that OneCoin is a pyramid scheme, and its behind-the-scenes manipulators have previously participated in other fraudulent activities that have been confirmed to be pyramid schemes.

v treasure

Vbao, also known as Vpal, is a new generation of virtual currency. After purchasing and holding Vbao, you will get the corresponding computing power, that is, you can get the corresponding Vbao coin return. But if you want to get more benefits, you must promote it, that is, develop downlines, attach the downline's wallet to your own wallet, and you can get the corresponding promotion computing power and get greater benefits.

Unlike other virtual currencies such as Bitcoin, Vbao's main promotion channel is strong offline publicity. It understands the psychology of the audience very well, gathers business owners through offline activities, lures them to join with high returns, and then uses them to attract acquaintances to form a huge pyramid scheme. However, the flashy surface hides a series of problems such as code plagiarism, false propaganda, fraud and fraud.

K-Coin

K-coin company uses the website to provide customers with an investment platform, and through the way of speculating in K-coin, it can obtain more income for investors in two different modes and yields, namely dynamic and static. Due to the novel investment model, high rate of return and strong publicity, it attracted many investors to speculate in coins in a short period of time.

The company's website was closed on September 25, 2015, and to date many victims' money has not been recovered.

How to determine whether a virtual currency is a pyramid scheme currency?

There are many popular "MLM coins" on the market. In addition to the common ones mentioned above, there are also Baichuan Coin, Treasure Coin, Panda Coin, Mark Coin, Hull Coin, Carat Coin, Excellence Coin and other "MLM coins" that use the name of Bitcoin to commit fraud.

This type of counterfeit currency developed for the purpose of making money is collectively called "MLM currency". So, what are the characteristics of "MLM currency"?

1. Coins made by individuals or companies themselves have no value.

Bitcoin can be used for shopping or exchanged for legal tender. Its success has led to "MLM coins" declaring themselves to be linked to Bitcoin and imitating Bitcoin to build platform systems, such as using coin miners to imitate Bitcoin mining machines, and coin minting to imitate mining...

Bitcoin is open source, and the total amount is limited (about 21 million). Every bitcoin generated is transparent and not subject to any manipulation. However, "MLM coins" are not open source, and the speed and quantity of coins generated are controlled by the platform. As long as the platform developers are willing, "MLM coins" can be issued indefinitely. This makes "MLM coins" completely uncompetitive among many virtual currencies, and even worse than ordinary legal tender. Although legal tender can be issued indefinitely, at least there is national credit to back it up. Therefore, "MLM coins" have no value, and claiming to be linked to Bitcoin is just a deception for members.

2. It is not a transaction on a third-party platform, but a way to make money by recruiting people.

There are two main income models for "MLM coins": static income and dynamic income.

Static income (such as Morgan Coin) refers to the production income obtained by using the coin-making machine. The existence of static income seems to whitewash "MLM coins" because you can get good income without recruiting people. However, more space in the promotional materials will encourage members to obtain dynamic income.

Dynamic income refers to getting a "bonus" for recommending members, which is a typical pyramid scheme - getting income by recruiting people.

In fact, it is very clear if we think about it as a whole. Gold coins cannot be circulated externally, and the organization cannot earn income through investment. The only source of income is the money members spend on buying coin-making machines. Therefore, only by constantly recruiting people and developing downlines can the organization's income be increased and the entire capital chain maintained.

3. Dividends based on capitation fees disappeared due to business closure.

"MLM coins" have a cashing mechanism. After recruiting people, you will get gold coins. When the gold coins accumulate to a certain number, they can be transferred to the upline or downline for cashing and dividends can be received.

This dividend distribution method makes members feel that they earn bonuses by inviting friends, rather than the head fee in traditional pyramid schemes. But in fact, there is no difference between the two. The accumulation and cashing of gold coins only makes the head fee dividends come later and more concentrated.

4. Brainwash members through powerful propaganda.

The most "essential" part of "MLM Coin" is brainwashing, and the content of the two is almost the same. It takes advantage of members' fantasy of getting rich overnight, feeds them some success stories, chicken soup, celebrity stories, fashion trends, etc., weaving a grand dream of wealth, which motivates them to spare no effort to develop downlines.

From the above analysis, it can be seen that there are essential differences between "MLM coins" and Bitcoin.

Bitcoin is open source and based on blockchain technology. All codes are open and transparent, and all doubts can be raised publicly. No one can be mysterious. The development of Bitcoin and blockchain has led many countries and financial institutions to study this new technology.

In 2016, the People's Bank of China announced plans to launch a central bank digital currency. The U.S. federal government has publicly called Bitcoin a commodity. Most European governments recognize Bitcoin's commodity status or currency attributes. The Japanese parliament approved a new bill on cryptocurrency, recognizing Bitcoin as a legal form of payment with currency functions.

2016 US presidential candidates Rand Paul and Perry publicly announced that they would accept Bitcoin donations; Li Ka-shing invested in a Bitcoin company; Bill Gates publicly talked about the advantages of Bitcoin; Tim Draper, an investor in Baidu, Tesla, and the domestic Bitcoin trading platform OKCoin, publicly held a large amount of Bitcoin...

Investment advice

If you are interested, learn the basics of Bitcoin; if you don't understand the principles of Bitcoin, don't invest impulsively. Only by rejecting greed can you make rational choices; only by recognizing the true and the false can you protect your capital and make a profit.