The SEC Talks About The Dangers Of Cryptocurrency MLM Schemes
In the last few weeks, Cryptocurrency has been getting a lot of attention in the network marketing circles.
With all this hype, I am sure you have seen some of your friends trying to sell Cryptocurrency in your social media feeds.
The first thing you need to know is that I am NOT an affiliate or distributor for Cryptocurrency.
I wanted to gather all the information about Cryptocurrency in my Cryptocurrency Review in order for you to make a decision about joining Cryptocurrency.
Is Cryptocurrency legit or a scam?
Will it be able to deliver on it’s promises to you?
Let me show you in my unbiased review of Cryptocurrency.
Read on to find out what you need to know.
What The Heck Is Cryptocurrency?
2017 is quickly winding down, and as it does, it’s a time to look back on the MLM industry and see what was big throughout this past year.
There were a lot of things that happened in 2017, but there’s one trend that undeniably took the cake over everything else – cryptocurrency.
Cryptocurrency exploded in 2017 thanks to the rise of bitcoin, and as expected, this trickled into the MLM space as well.
There were some legitimate opportunities that tried to incorporate crypto into their businesses in a legal and proper manner, but unfortunately, the majority of setups in the MLM space used crypto in a illegitimate and illegal manner.
There were tons of MLM opportunities using cryptocurrency as a draw to get people to dump money into valueless constructions, and this resulted in a lot of lost funds for more than a few people.
Since all of this, the SEC’s Chairman, Jay Clayton, has issued a “Statement on Cryptocurrencies and Initial Coin Offerings” to remind everyone that cryptocurrency is still ruled and governed by security laws the SEC has had in place for years.
In an early part of the statement, Clayton reinforces that “market participants should treat payments and other transactions made in cryptocurrency as if cash were being handed from one party to the other.”
This is absolutely true, and it’s something I try to make a point of whenever I do an MLM cryptocurrency review. Crypto might not be physical, but when your money is invested in it, it needs to be treated as such.
Also, despite the many schemes that were found using crypto, it seemed like every single one made the point of saying “this time is different.”
However, as Clayton notes, this is a bunch of baloney.
“Investors should understand that to date no initial coin offerings have been registered with the SEC.
There is substantially less investor protection than in our traditional securities markets, with correspondingly greater opportunities for fraud and manipulation.
If you choose to invest in these products, please ask questions and demand clear answers.”
Another trend that we saw was with MLM cryptocurrency scams taking invested funds and funneling them overseas to other countries without investors knowing about it at all.
As Clayton points out, this is a big thing to keep an eye out for:
“Please also recognize that these markets span national borders and that significant trading may occur on systems and platforms outside the United States.
Your invested funds may quickly travel overseas without your knowledge.
As a result, risks can be amplified, including the risk that market regulators, such as the SEC, may not be able to effectively pursue bad actors or recover funds.”
Dealing with any MLM setup is risky, but when cryptocurrency is involved, the stakes are raised even more. In an effort to keep your wits about you and ensure you don’t end up losing a heap of cash, Clayton says to ask yourself the following questions before handing over any of your cash:
- Who is issuing and sponsoring the product, what are their backgrounds, and have they provided a full and complete description of the product?
- Do they have a clear written business plan that I understand?
- Where is the enterprise located?
- Where is my money going and what will it be used for? Is my money going to be used to ‘cash out’ others?
- Are there financial statements? If so, are they audited, and by whom?
- If a blockchain is used, is the blockchain open and public?
- Has the offering been structured to comply with the securities laws and, if not, what implications will that have for the stability of the enterprise and the value of my investment?
Lastly, Clayton ends his statement with the following:
“Any such activity that involves an offering of securities must be accompanied by the important disclosures, processes and other investor protections that our securities laws require.
A change in the structure of a securities offering does not change the fundamental point that when a security is being offered, our securities laws must be followed.”
Cryptocurrency MLM schemes will likely still be around in 2018, but if Clayton’s message is a sign of anything, hopefully the SEC will start cracking down on these scams more than it did in 2017 and help to keep potential investors as safe as can be.
So, Is There A Cryptocurrency Scam Going On?
Have you been hearing rumours that Cryptocurrency is a scam?
After reading this review, you might still be asking yourself if it is really legit.
So – what is the truth? Is there really a Cryptocurrency scam going on?
If I am being perfectly honest, Cryptocurrency isn’t entirely a scam.
However, there are some things you need to watch out for.
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Finally, My Cryptocurrency Review And Conclusion!
I really hope you have gained value from my Cryptocurrency Review.
I wanted to make sure you had all the information you needed, because most other Cryptocurrency reviews are just trying to sell you something.
If you really do decide to join Cryptocurrency, I want you to succeed with your business. Learn how to market yourself properly!
My training can help you make money online!