Can direct selling cryptocurrencies find a legitimate future?
By James Tenser
“There’s no reason to MLM something that is electronic. Everyone should be in the first level.”
—Philip Raymond, Cryptocurrency Standards Association
The network effect of the direct sales business model is well-known to create enormous opportunities with the right combination of product, timing and message. Combine that with the recent proliferation of hype-driven cryptocurrency offerings and there’s a recipe for both high risk and high reward.
The risks are certainly profound, and not for the squeamish. The U.S. Securities and Exchange Commission is clamping down on what it deems as sales of unregistered securities. The Federal Trade Commission (FTC) is shutting down coin-related Ponzi schemes. Add in a host of agencies and prosecutors, and the cost and risk of putting together a legitimate cryptocurrency sales company are far too high for most.
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