it should be quite easy to make a distinction between a crypto currency and a ponzi/scam scheme.
take bitcoin, the king of crypto currencies:
- it's open source
- nobody owns it (there is no bitcoin ceo)
- everyone can partecipate without packages/cd-rom/whatever to buy, just running the software
- it is decentralized, you can run your own node, potentially nobody can stop it
- it is transparent, you can read any transaction with a block explorer
- does not need marketing, it's not a product to sell, it's a open protocol with a certain purpose
now take edinar, leocoin, onecoin, swisscoin or any other MLM coin:
- most of times you cannot read code, it is not opensource
- are owned by shady companies and not respectable business man
- are pyramid scheme where you start by buying 1000 coins, if you buy more you get higher rankings, you can sell cdrom/books, partecipate in meetings where they will convince you with any possible communication strategy, if you find more people to sell coins then you earn more yourself and so on
- you cannot run your own node
- in the case of onecoin and leocoin the blockchain is pure fiction, the public ledger (the blockchain) does not even works or exists
- it's pure marketing tool (MLM = multi level marketing), the ones on top of the pyramid earn real (fiat) money while the other are left with worthless (crypto) coins. in the case of leocoin the managers were even more smart because they switched to POS while holding +30 Mil coins that would stake loads of free coins to dump on the market and on new members (money out of thin air)
many of this scam coins are just exploiting the success of crypto currencies eliminating the very reasons and purpose of a blockchain. the victims are noobs, not tech savvy people and third world coutry poeple looking for a fast way to flip some (little) money. most of them get burned, the managers instead run away with cash to the next scheme
take bitcoin, the king of crypto currencies:
- it's open source
- nobody owns it (there is no bitcoin ceo)
- everyone can partecipate without packages/cd-rom/whatever to buy, just running the software
- it is decentralized, you can run your own node, potentially nobody can stop it
- it is transparent, you can read any transaction with a block explorer
- does not need marketing, it's not a product to sell, it's a open protocol with a certain purpose
now take edinar, leocoin, onecoin, swisscoin or any other MLM coin:
- most of times you cannot read code, it is not opensource
- are owned by shady companies and not respectable business man
- are pyramid scheme where you start by buying 1000 coins, if you buy more you get higher rankings, you can sell cdrom/books, partecipate in meetings where they will convince you with any possible communication strategy, if you find more people to sell coins then you earn more yourself and so on
- you cannot run your own node
- in the case of onecoin and leocoin the blockchain is pure fiction, the public ledger (the blockchain) does not even works or exists
- it's pure marketing tool (MLM = multi level marketing), the ones on top of the pyramid earn real (fiat) money while the other are left with worthless (crypto) coins. in the case of leocoin the managers were even more smart because they switched to POS while holding +30 Mil coins that would stake loads of free coins to dump on the market and on new members (money out of thin air)
many of this scam coins are just exploiting the success of crypto currencies eliminating the very reasons and purpose of a blockchain. the victims are noobs, not tech savvy people and third world coutry poeple looking for a fast way to flip some (little) money. most of them get burned, the managers instead run away with cash to the next scheme
You summed up everything,take note of this and you will have a guide on how to differentiate an mlm coin and a real coin,that a look at TBC or thebillioncoin ,holders claiming it's worth hundreds of dollars but check on legit crypto cirrency exchanges and you will not find it there..
