USA Based MLM Attorney Kevin Thompson speaks out:
“It’s time to state the obvious: Crypto + MLM = Legally Impossible.I’m not suggesting that “crypto” is bad. On the contrary, I think crypto provides exciting opportunities for all sorts of yet-to-be-discovered innovations. There are plenty of reasons for people to be distrustful and concerned with traditional finance.
Crypto provides people with an interesting offramp away from traditional finance. Volatile and dangerous? Sure. But it’s possible; thus, there’s a place for it.
I’m not suggesting that MLM is bad. Clearly not, I’ve built my career around it. But it’s important to understand that when a company layers a multi-tier incentive structure around a thing (product, service, etc), it completely changes the character of the company.
Instead of the company being in complete control over its message, they deputize an army of people to spread the word for them. This creates incredible leverage in the marketplace. And as we all know, leverage can be great. It can also lead to ruin.
When a company mixes something as speculative, volatile, confusing, and exciting as crypto with a multi-tiered compensation structure, all of sudden you end up with thousands of financial experts “talking their book” and promoting the next best