Below article is for once my personal opinion 🙂
In the USA the federal government has a simple answer for Crypto currencies and network marketing: “No way”.
The SEC or FTC will go after any crypto currency opportunity.
However other jurisdictions do not have (yet) such an bold approach.
What has happened in the past with network marketing compensation plan driven crypto currencies?
A group of investors create a coin, appoint a CEO, attract a network marketing professional and they are signing up distributors.
The company get the coin listed on an alt-coin exchange and distributors / investors pump their coins immediately into the exchange and the coin loses its value big time, as its credibility.
Not a great marketing strategy. “Pump and dump” as criticasters call it. Giving the whole concept a black eye.
So the question raises:
If proper executed would it be possible to create an honest, clean, legit, network marketing business opportunity around a crypto currency outside the USA?
What would it need?
In my opinion and after being an guest and independent observer at many crypto launches and having an open mind, at a minimum:
Clean investors and top notch management. If the maffia is behind the project you are doomed.
Transparency, the management team and investors should be known.
A