Chinese virtual currency pyramid scheme

Contents

1. Virtual currency is a pyramid scheme, what does the country think of it

Virtual currency itself is not a pyramid scheme, but some criminals are using the guise of bitcoin and other virtual currencies to conduct pyramid schemes. There is no relationship between them, just a tool to be used. The state recognizes the legitimacy of virtual currency, defines virtual currency represented by bitcoin as a special Internet commodity, and denies its monetary attributes. Central bank governor Zhou Xiaochuan even compared bitcoin to an asset like a postage stamp. However, the use of virtual currency for pyramid selling activities is still not allowed by the state, and the state will take severe measures to crack down on it.

The popular virtual currencies since 2013 include Bitcoin, Litecoin, Fuyuancoin, Dogecoin, Ripple, Darkcoin, Yuanbao, etc.

2. Why do many people who enter the virtual currency pyramid scheme still make steady profits for a year or two?

Before answering this question, you must first see where you came from “The fact that one or two years of steady profit is not lost”, if the person who is doing this tells you, you have to distinguish his true and false, most of the reason why he said this to you is to take you Join. At least the people I’ve met who get these things around are not guaranteed to make money without losing money, but more of them lose their money and get a new name called “Internet Refugees”. Let’s analyze the entire model of virtual currency is a pyramid model. One person brings in more people to earn the money of those latecomers. The early stage can be rewarded. Because there is no return, the early stage people will not be so willing. To recruit late-stage people, when the development reaches a certain scale, you will no longer be able to raise any money. So whether a platform or a currency can be maintained for one or two years depends on whether the scale is large enough and whether there are enough latecomers, otherwise, how can there be money to give back to many people who entered the early stage? Therefore, only platform operators can make steady profits without losing money

3. Is virtual currency a pyramid scheme? The biggest is Bitcoin.
However, the attitude of the regulators is clear. Whether it is genuine bitcoin or various derivative altcoins, there is currently no way to obtain a legal living space. This is for everyone to make clear. In the event that the platform goes bankrupt or the staff runs away, it is very likely that everything will be lost, and the losses incurred cannot be guaranteed by law.
The promises they give you often make the participants get money quickly, and behind it is often a Ponzi scheme of “removing the east wall to make up for the west wall” + “empty gloves and white wolves”, using the money of new investors to make money Older investors pay interest and short-term returns to create the illusion of making money and defraud them of more investment. When no new investors enter the market, the returns of old investors collapse step by step, and in the end it is often difficult to withdraw cash or the website cannot be opened.
In short, although the external form of virtual currency is ever-changing, it is not divorced from its MLM essence. The more investors invest, the greater the loss in the end, and the serious ones may go bankrupt.

4. Is it a pyramid scheme to issue virtual currency in China and then exchange currency for Ethereum in disguise?

The Monetary, Gold and Silver Bureau of the People’s Bank of China issued “About Issuing or Promotion in the Name of the People’s Bank of China Risk Warning of Digital Currency”. The central bank emphasized in the risk warning: our bank has not issued legal digital currency, nor authorized any institution or enterprise to issue legal digital currency, and has no promotion team. At present, the so-called “digital currency” on the market is not a legal digital currency. The central bank emphasized that the so-called “digital currency” launched by some institutions and enterprises and the so-called promotion of central bank-issued digital currency may involve pyramid schemes and scams.

If you are interested in learning more anti-fraud information, you can pay attention to my Baijia account “Laohan Anti-MLM”, which will continue to update the insider routines and secrets of MLM MLM methods, I hope everyone can be vigilant and stay away from MLM scams!

5. Why does the Ministry of Public Security not crack down on virtual currency pyramid schemes?

The Ministry of Public Security is not not cracking down, but has been doing its best to crack down. But China is too big, and it is difficult to completely ban pyramid schemes in China. The four ministries and commissions of Mutual Aid Finance have issued risk warnings, but many people are still playing, resulting in heavy losses. Local police also reported that they had destroyed a number of digital currency pyramid schemes.
Of course, virtual currencies are not all pyramid schemes, such as Bitcoin, Litecoin DECENT and so on.

6. 60 Virtual Currency MLM List

2020 60 Virtual Currency MLM List
Image search results for “MLM currency”

The list of 60 virtual currency pyramid schemes released by CCTV includes:

MBI, M3 Coin, Dark Coin, Asian Coin, Stellar Coin, Jinyuan Shopping Alliance Electronic Coin, Changjiang International Virtual Coin, Qileba, Weibo Video Media Electronic Coin, Dividend Point Coin, Virtual Gold Coin, HGC, COA, LFG, SRI, bismall, AHKCAP, CPF, 100 million points, K coin, R coin, Baichuan coin, K treasure, Zhongfutongbao, Hongtong coin, Raines electronic currency.

Global BlackRock No.1 Wealth Management Coin, Grasberg, BCI, M Coin, Wing Coin, EV Coin, Performance Coin, FIS, U Coin, ES, Zangbao.com Performance Coin, Remittance Ai electronic currency, Jianye disk electronic currency, subsidy currency, high frequency trading currency (HFTAG), happy compound interest currency, virtual currency of Kuailian website, Shihua currency, Ente currency, CPM, carat currency, supreme currency.

Wuhua Alliance virtual currency, Legg Mason E, China currency, Mimi virtual currency, FIS, World Cloud Union cloud currency, Lucky Coin, One-way Coin, Mark Coin, Kindness Coin, Promise Coin , ATC, IPC, Central Coin, Wuxing Coin, Huiai Coin, Navigation Coin and other “virtual currencies” with at least 65 names.

7. How to deal with the virtual currency in the central meeting of the pyramid scheme

I was deceived by a virtual currency pyramid scheme of more than 10,000 yuan, enough to buy virtual currency. Is there any way to report them?

8. How long can virtual currency fraud and pyramid selling crimes persist under strict supervision

Although virtual currency management is difficult, it can be controlled in accordance with relevant laws such as banking law and criminal law. Regulation and sanctions.

For example, the People’s Bank of China stipulates that financial institutions and payment institutions are not allowed to settle virtual currencies, so there is no trading market for virtual currencies in China. However, although there is no settlement market in China, virtual currency may choose to settle overseas, because virtual currency is attached to the Internet and can be settled in any country.

By building a virtual currency trading platform on a foreign website for people to trade, it will be more difficult to manage. There are also some third-party payment institutions in China that secretly provide settlement services for virtual currencies. This virtual currency trading market brings certain difficulties to supervision.

Nowadays, formal payment and settlement institutions are not allowed to provide settlement channels for virtual currency transactions, but informal institutions may still secretly provide settlement services. Even if informal institutions are cleaned up, some people may choose to go abroad to carry out similar acts.

(8) Extended reading of China’s virtual currency pyramid scheme:

For virtual currency supervision, it should focus on preventing any form of virtual currency from replacing RMB functions, as well as engaging in illegal activities through virtual currency, that is, strengthening the supervision of the functions and uses of virtual currency. It is necessary to focus on whether virtual currency is used as currency, not only whether it is counterfeit or altered from the object form of currency.

Any object that exercises monetary functions within the territory of the People’s Republic of China violates the relevant provisions of the Law of the People’s Republic of China on the People’s Bank of China. The virtual currency presented in the form of code, as long as it is used as currency, is equivalent to counterfeit currency, and can be regulated and sanctioned in accordance with the “People’s Bank of China Law of the People’s Republic of China” and the Criminal Law and other relevant laws and regulations.

Reference source: People’s Daily Online – Experts on cracking down on virtual currency transactions in many places: key regulatory functions

9. mbi virtual currency is a pyramid scheme, why does mainland China care

Whether it is a pyramid scheme should be judged according to its specific business operation mode.

MLM means that the organizer or operator develops personnel, and calculates and pays remuneration to the developed personnel on the basis of the number of personnel or sales performance directly or indirectly developed by the developed personnel, or requires the developed personnel to pay the salary. A certain fee is a condition for obtaining membership qualifications to seek illegal benefits, disrupt the economic order, and affect social stability.

According to Article 7 of the “Regulations on Prohibition of Pyramid Selling” by the State Council, the following behaviors are pyramid selling behaviors:

I. The organizer or operator, through the development of personnel, requires the development personnel to develop other Personnel joining, calculating and paying remuneration (including material incentives and other economic benefits, the same below) to the development personnel based on the number of direct or indirect rolling development personnel, seeking illegal benefits;

II. The organizer or operator, through the development of personnel, requires the person to be developed to pay the fee or pay the fee in disguised form by subscribing for commodities, etc., to obtain the qualification to join or develop other personnel to join, and seek illegal benefits;

3. The organization The operator or operator, through the development personnel, requires the development personnel to develop other personnel to join, to form a relationship between the upper and lower lines, and calculate and pay the upper line remuneration based on the sales performance of the lower line, so as to seek illegal benefits.

10. What are the 60 MLM virtual currencies broadcasted by CCTV news

The 60 MLM virtual currencies broadcasted by CCTV news include MBI, M3 coins, Dark coins, Asian coins, Stellar coins , Jinyuan Shopping Alliance electronic currency, Changjiang International virtual currency, Qileba, Weishi media electronic currency, dividend point currency, virtual gold coins, HGC, COA, LFG, SRI, bismall, AHKCAP, CPF, 100 million points, K coins, R coins, hundredSichuan coin, K treasure, Zhongfu Tongbao, Hongtong coin, Raines electronic currency.

Global BlackRock No.1 Wealth Management Coin, Grasberg, BCI, M Coin, Wing Coin, EV Coin, Performance Coin, FIS, U Coin, ES, Zangbao.com Performance Coin, Huiai Electronic currency, Jianye disk electronic currency, subsidy currency, high frequency trading currency (HFTAG), happy compound interest currency, virtual currency of Kuailian website, Shihua currency, Ente currency, CPM, carat currency, supreme currency.

Wuhua Alliance Virtual Currency, Legg Mason E, China Currency, Mimi Virtual Currency, FIS, World Cloud Union Cloud Currency, Lucky Coin, One Way Coin, Mark Coin, Kindness Coin, Promise Coin, “Virtual currencies” with at least 65 names, such as ATC, IPC, Central Coin, Wuxing Coin, Huiai Coin, and Navigation Coin.

(10) Extended reading of Chinese virtual currency pyramid schemes:

Among the 141 virtual currency pyramid schemes searched on the Chinese Judgment Documents Online, such criminal The number of cases has been increasing year by year. In 2014, there were 5 court judgments, and since then, the number of cases has increased exponentially, and it has increased to 62 cases in 2017. According to the judgment documents, among the above-mentioned virtual currency pyramid schemes, “OneCoin” involved the highest amount of money, with a total of 7 billion, and its global membership totaled 10,770,000, the largest number.

Judging from the development scale of MLM organizations in China, “Yunbi” (also known as World UnionPay, World Cloud Alliance Network MLM Platform) has the largest number of offline MLM organizations with 4,391,449; followed by “Darkcoin” The MLM organization has developed more than 3.4 million members.

Reference source: Phoenix Net-Virtual Currency MLM: 65 MLM coins deceive tens of millions of people over 10 billion

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