TRON supporters silently working on a MLM model
Today morning one of my friends called me and was asking about investing in Cryptocurrencies. He was specifically into Tron investment and there were so many questions about the advantages of investing in Tron and how Tron can be next to ETH in another few years etc. I was surprised to hear so much in one day. The reason why he approached me for a suggestion was that I've been in the crypto world for over 3 years now and he wanted to get some insights.
I was patiently observing what he was about to say. He then talked about someone who contacted him about a good business idea. I had to go on a call with that person to understand in detail about the business idea. I'm not willing to explain more about the idea and not mention any names as well. Let it be anonymous. Yeah so I went on this call and the person was talking about the business model.
First, when I was listening to that I showed some interest considering the returns we get from the investment. The plan was to invest 1000 TRON tokens and keep them in their wallet. We would be given a username and password to their website and we will be able to see the tokens and withdraw the tokens anytime. Being said that when we invest 1000 tokens, 400 tokens from that would go to the person who introduced us to this scheme. Next, when we get 3 people under us, we get a share of 400 tokens from them.
Similarly, when people under us get more people, we will be able to get more TRON tokens. The maximum limit to earn these tokens is to reach 120 people under us like a tree where each person has 3 people under them. I was silently listening to all these conversations and the person defended saying that this is no MLM but as far as I know this is definitely multi-level marketing. Even though the concept looks cool, I see a lot of gaps here and trust issues here.
The person also mentioned that investing in 1000 tokens is not a big deal as we spend on so many things every single day. In a way that is true but for me I felt this model had flaws and ethical issues. I might earn a lot actually but with that income be a good one for me. I doubt it. I did not want to give it a try. I'm already investing a lot on various cryptocurrencies and also TRON already gives staking rewards for people who are freezing their tokens with a lock period of 4 days. The interest we get is around 14% APR. If at all I want to get some passive income, I would better go and invest in TRON tokens by keeping it in my own wallet and Staking it all by myself instead of a third party doing it for me.
I guess these MLM models would definitely work but not for me but for people who are good in marketing and also people who are not fully aware of how it works but they want a quick bucks scheme. At least, I'm not comfortable in these fast-growth income schemes.
https://twitter.com/bala41288/status/1310293801634799617
MLM models leverage the network effect and yes it has a bad rep but it could be a good way to onboard people as long as they don't have to invest too much and continue to invest, a $50 in crypto I think is worth trying out for anyone
Posted Using LeoFinance Beta
MLM is just cleaner name for pyramid scam... Like I explained in my other comment, there is nothing good in scamming people.
I do agree that MOST MLMs are scams, and I'm NOT defending the practice, in fact I think its lazy and I don't like it but if 30% of your revenue comes from onboarding users or less, then you're still legally in the clear. It's not to say its a successful model other than making the early people rich, but a pyramid scheme is more the majority of revenue or all revenue comes from new people and not legitimate sales
I remember one MLM that sold cleaning concentrate that did cost 120 EUR/bottle... We did buy a few and dilute it, lasted years and was actually pretty good... It only took like 40 people before it was worth buying...
Yes it is true. I agree that MLM can be a very good way to onboard people. The only factor that disturbs me is the centralization here. I have been a part of some MLM in the past. What happened is the owner ran away with all the money one fine day. 😀
@tipu curate
Upvoted 👌 (Mana: 18/27) Liquid rewards.
Thanks for the curation. Cheers! !BEER
You need to stake more BEER (24 staked BEER allows you to call BEER one time per day)
To me sounds like classic case of pyramid scam... It works as longs as there is new users to be introduced and then it collapses... Basically core people try to hoard as many tokens/coins as possible to themselves and then shutdown the system.
Yes, they wait for the right moment and then suddenly shut down the operation to run away with all the money they have accumulated. Like you said the chain will be kept active only if there are enough new users joining. 🙂
I think only way for MLM model to work in sustainable manner is if it is not a pyramid, but a hourglass shape instead... Basically 1/3 goes to upper level and 1/3 goes to new users to give them reason to participate and the person gets to keep 1/3... This is different from unsustainable 200% profit promise of regular pyramid shape MLM models...
That 1/3 one-time reward given to new users will balance out eventually when they need to restock their supplies. Obviously it has to be one-time reward to avoid infinite loop of the hourglass shape. Basically they pay 2/3 of the actual list price of the goods and sell them for 50% profit (2/3 + 1/3 = 3/3, which equals list price).
Its a classic pyramid scam... A similar scheme was Onecoin which was pretty popular in Asian countries few years ago. They had a similar model and looted millions of dollars.
Yep true. When I first heard about this, I also felt the same. !BEER Cheers!
View or trade
BEER.Hey @xabi, here is a little bit of
BEERfrom @bala41288 for you. Enjoy it!Learn how to earn FREE BEER each day by staking your
BEER.Dear @bala41288
Finally - I've managed to find few minutes to catch up with reading. I bookmarked your post a while ago but I only had a chance now to check it out.
Somehow it doesn't surprise me to hear that TRON is working on MLM model. I've lived in South-east asia for 11 years and I've been to china and singapore number of times. Just enough to learn, that MLM is not considered to be "an evil" the way western cultures see it.
After all, if we would dig into topic of MLM then we could quickly come to conclusion that many businesses are build this way. Even stock markets have so much in common with idea of MLM. Or our pension funds and retirement. The moment you cut off "fresh blood" -> everything would collapse.
Hope to see more of your posts published within PH community :)
Solid read. Have a great week ahead :)
Yours, Piotr
Yes, I agree with you. Most of the big projects were and are being built with the help of MLM. I wouldn't say that it is completely a bad model but just that it is not my cup of tea. 🙂
In India, we have had so many projects that start out as an MLM thing but then gradually it will fade away or the owner would run away with the entire money that he earned from everyone. We have seen such scams a lot.
I agree with your point about how funds on the stock market and pension funds are being built.
Cheers!