Bitcoin, Cryptocurrencies and MLM: Part 1

    Kevin Thompson is an MLM attorney, proud husband, father of four and a founding member of Thompson Burton PLLC. Named as one of the top 25 most influential people in direct sales, Kevin Thompson has extensive experience to help entrepreneurs launch their businesses on secure legal footing. Recently featured on Bloomberg TV and several national publications, Thompson is a thought-leader in the industry.

    Courtesy of jason_benjamin @ Flickr

    Courtesy of jason_benjamin @ Flickr

    This is part 1 of a 2 part series about cryptocurrencies and MLM.

    I caught the Bitcoin bug two years ago, back in mid-2013. I was speaking with a client and he mentioned this Bitcoin thing, talking about how it was a new way to send “funds” overseas without any intermediaries (banks). I was hearing this at a time when I was aware of another client experiencing trouble getting money out of India due to banking restrictions. In a fast and fluid economy, time is precious. And if banks’ outdated systems were adding undue burdens on international business, innovation in that sphere was inevitable. While I did not fully understand it, the concept made sense.

    I was hooked. I read as much as I could and even bought a few coins to test it out. I even started the website Bitcoin Lawyer on the hunch that there was an opportunity for legal services when it came to crypto-currencies. Politically, the concept of Bitcoin was appealing. The current banking system with a centralized Federal Reserve has always made me nervous. Practically, I had no idea if I had any real need for Bitcoin.

    As time has gone by, I’ve become less interested. While Bitcoin might have a strong future, it solves no immediate problems for me today. I experience zero difficulties transferring funds to merchants, friends or anybody else. Long term, I think the Bitcoin technology might inspire banks to streamline their processes, adopting some of the blockchain technology to eliminate some of the costs associated with money remittance. Will Bitcoin trump the banks? Nope. Currently, Bitcoin related companies are trying to fit their square pegs into round holes by trying to comply with existing banking regulations. It’s not going so well with several of the early pioneers facing jail time. Cryptocurrency was born out of a need for privacy. Banking regulations exist to eliminate privacy, making it easier for the government to root out fraud. Thus, the serious conflict between the two.

    So…

    Within the span of a couple of years, Bitcoin has literally exploded onto the scene and become a household word. Silicon Valley has literally dumped over $2,000,000,000 into Bitcoin related technologies. The technology is improving, the base of Bitcoin users is growing, the exchanges are becoming more stable. All in all, Bitcoin is developing into a solid service for users. It’s in a virtuous cycle where more good news begets more good news. It’s a topic I like and it’s a topic I understand.

    Does Bitcoin work with MLM?

    It’s a tough question. I’m often reminded of Seth Godin’s analogy of a Meatball Sundae. Just because I like ice cream and I like meatballs doesn’t mean that I should put the two together. The same applies to cryptocurrency MLMs. While the two can coincide in theory, it’s hard surgery to do right.

    The purpose of this article is to serve as a warning

    I feel as though there’s a cryptocurrency ponzi scheme bubble brewing in the network marketing industry. It reminds me of the environment during Zeek Rewards. I’m afraid this cancer has already grown into a mass larger than what we saw with Zeek. Ponzi scheme promoters, domestic and foreign (primarily in China), are taking advantage of Bitcoin’s complexity and its veneer of legitimacy to convince investors that “now’s the time to invest in XYZ alt-coin, which is destined to be the next Bitcoin.” Consumers, completely uneducated about the technology behind cryptocurrency and unable to decipher good from bad, are making serious mistakes. Plus, there’s the added excitement of investing in a coin cheaply with the hopes of it rising in value 1000% similar to Bitcoin’s climb. After seeing the Zeek Rewards hysteria, there’s one lesson I’ve learned: People under the influence of easy money make stupid mistakes. Be warned: There’s a chance the cryptocurrency program is a cleverly disguised ponzi scheme. In most scenarios, the coins are not OPEN; thus, there’s no way to confirm the coin’s legitimacy. When the coin is developed in a CLOSED environment, the value of the coin is driven purely by new enrollments into the scheme i.e. ponzi.

    The ponzi promoters that push these programs look like you and I. The difference is that they spend most of their time building their “businesses” in the dark corners of the world, seemingly beyond the eye of the U.S. government. They’re hanging out in places like Thailand, Hong Kong and China. They know they’re doing wrong, which is why they’re building away from their homes, amassing as much money as possible before the market wises up to the industry. In Zeek Rewards, there was about a two year run where the ponzi promoters made their money before the market figured out the game. The victims are uneducated and faceless, which makes their work that much easier.

    The SEC has provided some tips on how to sort out the ponzi schemes from the legitimate cryptocurrencies. In part 2 of this series, I’ll pass along the SEC’s tips as well as provide some tips of my own.

    I’m hopeful this article educates people and starts a discussion.

    To read Part 2, click here. In Part 2, we dive more into the specific law and I provide some tips for consumers.

      Kevin Thompson is an MLM attorney, proud husband, father of four and a founding member of Thompson Burton PLLC. Named as one of the top 25 most influential people in direct sales, Kevin Thompson has extensive experience to help entrepreneurs launch their businesses on secure legal footing. Recently featured on Bloomberg TV and several national publications, Thompson is a thought-leader in the industry.

      • This is not what I expected. Thanks for telling the truth early on and glad that your following up with part 2 soon. Looking forward to reading that…

        • Kevin Thompson

          I’m really glad you found the article helpful, Joe.

          • Thanks for the Reply. Looking forward to read latest articles

            • Jason Richard Mangan

              Joe, I would highly recommend you discern this misleading article from an open heart and really due your research. Poor Poor execution from MLM Attorney that lacks due diligence in several ways. He PREY’s on The Ignorance , just like The Government. He is very well trained to manipulate you with words. Do not allow others to GOVERN – (YourMind) Ment

              • Kevin Thompson

                Jason, where exactly is this article wrong?

              • Jennifer Korol

                I don’t see any cryptocurrency that links with an MLM opportunity as a ponzi scheme. Bitcoin binary options are beginning to appear as well as real cryptocurrencies adding a binary compensation plan as part of a company or as an alternative way to earn more than what you would by buying and selling it alone. The only thing that would make any opportunity a ponzi scheme is when a company refuses to pay people. I haven’t seen that.

              • Kanaiyalal

                Sir
                I am k d Patel in india live
                And work to yocoin currency in mlm work
                Dou you interested in work yocoin.
                My email I’d
                Kanaiyalal68@gmail.com

              • Ken Labine

                i pointed out all your flaws you deleted my comment like a true champ!
                https://www.youtube.com/watch?v=KTu3urtwEBM&feature=youtu.be
                You just motivated me even more!

              • Ken Labine

                dont waste your time Jason, i already did and the guy deleted lmao real winner here!

              • Kevin Thompson

                I did not delete one of your posts.

        • Ken Labine

          then this one will really wake you up to the guy you go to and help pay his bills as he puts ad in front of your face!

          https://www.youtube.com/watch?v=KTu3urtwEBM&feature=youtu.be

      • J. Ryan Conley

        I believe in #BitCLubNetwork 1000%! 🙂

        • Deborah Lynne

          In BitClub Network, new affiliate funds are being used to pay off existing investors which makes it an illegal Ponzi/pyramid scheme. You can’t keep going around scamming people. Shame on you!

          • Thanks Deb! How many more people is this guy going to sucker into these schemes? I agree shame on him!

            • Mike DiGaetano

              What guy?

          • Ken Labine

            O SO BITCOIN DID TAKE THIS ROUTE? Time to look deeper thanks for letting me know of this 🙂

            • Deborah Lynne

              Bitcoin is not MLM. OneCoin is is also an illegal pyramid scheme disguised as a new digital currency.

              • Mike DiGaetano

                Where is your proof? What are you basing this on? If you are going say this, have a link or some facts. Thank You

              • Deborah Lynne

                OneCoin has no retailable and commissionable products. Affiliates are only able to market membership to the site itself which means they are only selling the opportunity to find others to buy the opportunity which is illegal:

                http://www.consumer.ftc.gov/articles/0065-multilevel-marketing

              • Mike DiGaetano

                That is a generalized article and does not name One Coin. And do you think that the CEO who is an attorney would put herself in that position? I’m just trying to get the facts. So I can form my own opinion. Could it be because OC is not US based? And Yes I understand in order to do business here they have to follow rules and guidelines set forth by the country.

              • Deborah Lynne

                According to your Facebook profile, you already formed your own opinion and joined OneCoin before getting the facts. It’s unfortunate because a simple Google search using the keywords, “OneCoin Scam” could have saved you from participating in this illegal pyramid scheme. A little due diligence goes a long way…

              • Mike DiGaetano

                Oh yes every blog that’s out there doesn’t have an agenda. And lets see lets google amway scam or nuskin scam or better yet dell scam walmart scam. Is that the best answer you have Blogs like Behind MLM are reputable?

              • Deborah Lynne

                I hope you don’t lose too much money in OneCoin. In the 5 years that I’ve been following Oz at Behind MLM, he hasn’t been wrong yet about illegal programs. He just put up a new article about OneCoin begging investors not to withdraw funds. You may want to read it:

                http://behindmlm.com/companies/onecoin/onecoin-beg-investors-to-not-withdraw-funds

              • Mike DiGaetano

                Oz is an authority and doesn’t drive traffic to his own programs? Please! That’s the best you have? poor research and slam article for his own agenda. ~ https://www.youtube.com/watch?v=KTu3urtwEBM As seen here!

              • Deborah Lynne

                What you’re experiencing is called cognitive dissonance.

                You’ve been presented with new evidence that works against your core belief and you can’t accept it. To protect your core belief, you’re trying to rationalize, ignore and deny anything that doesn’t fit into it.

                What’s sad is that OneCoin is going to continue scamming people until it crashes and burns or the authorities step in.

                When that happens, ignorance will no longer be bliss…

              • Mike DiGaetano

                What evidence? A blog from Oz or this one from KT. That’s the evidence?They are the authority for the world? What else are you basing your claims or research on? What is your expertise? As far as my expertise goes, I am no expert, hence why I purchased an education package. And also consulted with people I trust that know about the finance world better than I.

              • Deborah Lynne

                Hopefully, this will be a learning experience for you about the people you choose to trust with your finances.

                Attorney Kevin Thompson and Oz at Behind MLM are both MLM experts. As for me, I’ve been involved in network marketing for 42 years. I specialize in due diligence which is investigating and researching MLM programs and companies. I know comp plans like the back of my hand. I know what works and what doesn’t work based on the history of MLM…

              • Mike DiGaetano

                So you promote MLM’s that you believe in, I got it. And im pretty confident in saying you have been in several and not just one for the last 42 years because people change, times change, comp plans change. So being that this is a new concept its doomed to fail? Because it doesnt fall inline with your beliefs on how MLM’s are supposed to run? or have run in the past. got it. Thank you for your input.

              • Mike DiGaetano
              • Mike DiGaetano
              • Deborah Lynne

                The MLM Junkies are counting on you to believe their nonsense so they can continue to scam you…

              • Deborah Lynne

                Combining MLM and Cryptocurrency is a fairly new concept. The reason why these programs are doomed to fail is because of the recruitment driven comp plans that are attached to them.

                When there are no retailable and commissionable products, this means that all commissions paid out are affiliate funded which makes the business model unsustainable.

                Once recruitment ends, so will the program…

              • Jodi Tressler Greene

                And here again… taking the word of someone else making assumptions. If you know anything about the history of crypto-currency, Bitcoin and now OncCoin or just knew the context from which this was taken, you would know the auditing firm who audits OneCoin released a current market cap and valuation and they show an increase in coin value for OneCoin in the last 30 days. (While I’m NOT so much a personal fan of Sebastian Greenwood… what he
                is saying is an attempt to explain the value of allowing the coin to
                “sit and see potential increase in value” as Bitcoin grew and numerous
                other Alt Coins have grown over time and through adoption by
                members/users of the coin.) No one is “BEGGING” anyone to NOT SELL. He is reiterating that while there is a risk in ANYTHING, the early sellers (of any appreciating item) often lose money by selling early instead of waiting for the chance for it to go up.

                Ultimately, EVERYTHING has a risk… but I’ll say that having money in a 401(k), an IRA or any other traditional savings vehicle is just as risky as a crypto-currency. People will always be touchy when the subject is money so I expect it. But making a presumption that crypto-currency or any affiliate program attached to a crypto-currency will be doomed for failure is a pretty bold assumption considering it has never been done or attempted before. NO ONE can definitively declare, with any amount of absolute certainty, what the future of money or crypto-currency holds.

                It’s like religion… we are all hoping that we’re the ones who were right to choose the one we put our faith into… no one will know for sure… until the end. But I’m not going to take the advice of any one person. I did my own research, I consulted with my business advisors and attorney, and even talked to my parents (my father was CFO of Wells Fargo Mortgage before retiring so he knows a thing or two about economics and finance).

              • Jodi Tressler Greene

                And your quick glance at his profile is just as superficial as what you’re saying he did… FYI, Mike may not be an expert but I’m an veteran investigative paralegal over 15 years for trial attorneys here in Las Vegas. I did the due diligence and I went past the first or second page of Google filled with opinions and yellow journalism attempting to capitalize on traffic from major players. I dig deeper… looking at the industry or growth market, the product/service, the company, the leadership, the training, the marketing, and it took us months to move on this.

                If all you are doing is Googling “OneCoin Scam” to see if any results pop up and if any number of results pop up then it must be a scam. Do me a favor… Google “Walmart Scam” (you’ll get ALMOST 3M results BUT we all know Walmart isn’t a scam… ok, well, most of us in the US know it) or “GoDaddy scam” (you’ll get over 14k results) or “Amazon.com scam” (you’ll get over 20 MILLION resutls).

                So, please… your statements are truly misleading and you’ve formed your own opinions as well. Or maybe you’re just being sheep-herded by the likes of Oz or Mr. Thompson?

              • Thanks for YOUR due-dilligence Jodi

              • Jodi Tressler Greene

                What makes it illegal? I still don’t get why you’d say that?

              • Deborah Lynne

                One sign of an illegal pyramid scheme is if distributors sell more product to other distributors than to the public — or if they make more money from recruiting than they do from selling.

              • Jodi Tressler Greene

                So I guess I would ask if you have reviewed the comp plans of either Bitclub Network or OneCoin? Based on this comment above, I would say no or you would know this is not the case. Or maybe you’re just taking the opinions of “Oz” because you think he has “never been wrong” since you’ve know of him. To clarify the “pyramid scheme” position of both companies… I’ll explain what I’ve researched of both:

                1. Neither company has members/distributors selling products to other distributors. They sell to the public who become members as miners. The product is attached to a member account to manage. Once a member, new sales are only to the public… not other distributors. (~ Bitclub Network is a mining pool share that is mining Bitcoins for 1000 days and the Bitcoins mined are paid into the account for liquidation as preferred. ~ OneCoin is an education package which requires an account to login. In that regard… the public purchasing become members but are not required to become distributors unless they want to and no further purchase is ever required.)

                2. Both of these companies allows you to come in WITHOUT a requirement to recruit anyone. *You can make a purchase and let the system work for you. (~ Bitclub Network allows you to purchase a MINING POOL SHARE which produces daily portions of Bitcoin which is liquid and spendable via your attached eWallet. ~ OneCoin allows you to purchase an education package on crypto-currency and put to practice what you are learning with tokens spent on MINING of OneCoins which can then be traded for Bitcoin, LiteCoin, etc. and is liquid and spendable as well.)

                3. Commissions are paid on the initial purchase and NO future promise of commissions is made to a member by the company. (~ Bitclub Network pays 10% on the initial mining pool share purchase. ~ OneCoin pays 10% on the initial education package purchased. There is a 10% pay match on directly referred member’s personal sales for the initial purchase only. There is a network bonus for members who do decide to share it and grow a network and those bonuses are paid on the volume created from the initial purchase as well.

                If you have other information that this, please let me know. I’d love to find out what you have to base your statement on. Thank you.

              • This, IMHO is the BEST laymans terms explanation I have seen so far. Thank you for putting it out here without the mysterious hype the author uses

              • Jodi Tressler Greene

                So are all of these Ponzis, pyramids or scams?

                HashCoins Affiliate program. The referral fee starts at 10% of our revenue from customers that you refer.

                Minergate affiliate program. Get up to 0.75% from referrer’s profit

                Cex.io – The first commodity exchange, where you can trade mining facilities for a price set by supply and demand. Cex.io is the cutting edge market for Bitcoin priced and fully maintained GHashes. Receive 3% of your referred user’s GH/s balance.

                Hashop.IO
                is one of the leading Cloud Mining platforms that allows users to earn
                Bitcoins through collective mining.
                It offers everyone to participate in the affiliate program which gives
                you 10% discount of the plan cost, purchased by each referred client
                (payment in $). This offer works both for our recent customers and those
                who haven’t purchased anything on the website yet.

            • Jodi Tressler Greene

              Interesting reading in here… What I would like to know is whether you think Bitcoin is a scam? Also, does a “referral” aspect of a program for any product make it an affiliate program or MLM? You would be getting something for referring someone… so it would be, yes?

              • Kanaiyalal

                I interested in mlm in cripto currency.
                My Watesup no:07567140268
                Mail I’d:kanaiyalal68 @gmail.com

              • Usman

                Whatsapp at +923459188701

      • Tom McMurrain

        Stupid article – lacks disclosure – understanding of crypto currency business models – definition of what a ponzi scheme is and is clear that the author a ‘so-called’ reputable MLM attorney is using an ‘Authority Blog” to tear down the MLM industry without having the courage to mention the XYZ companies by name.

        Behind the ‘Dark Corners’ of the world….Last time I checked Kevin Dubai and Hong Kong were one of the most highly regulated financial centers in the world?

        More financial PONZI schemes have been create in the USA than any other country in the world.

        Come on Kevin – this is a crap attack on the industry without any substantiated FACTS – this is ALL HEARSAY and speculation.

        Are you now a SCAM REPORTER or are you an MLM Attorney – Appears you crossed the line

        Get your facts straight on what you are reporting on…..and have the courage to name the company or companies you are making these accusations about.

        A Ponzi PROMISES or GUARANTEES a future benefit on a present value commitment –

        In the case of XYZ company who sells educational packages and provides people with the opportunity or gateway to become ‘Miners’ of cryptocurrency. There is NO FINANCIAL PROMISE or GUARANTEE provides AFTER the XYZ company delivers the digital product.

        In fact there is NO AUTOSHIP so NO FUTURE benefits are PROMISED or GUARANTEED by XYZ Company for the ONE-TIME purchase.

        So to be CLEAR – XYZ for a ONE-TIME FEE

        Delivers an educational product NOT and investment.

        Provides a software suite to mine coins – Mining is VOLUNTARY.

        Provides a virtual wallet to hold the value of the coins

        Pays a ONE TIME commission to the person who sells the package and the respective uplines

        There is NO residual income – there is no autoship and there is no PROMISE or GUARANTEE of future value.

        By LEGAL definition XYZ cannot be a Ponzi scheme.

        So to help the lawyer understand a Ponzi scheme we must look at Zeek they DID provide a PROMISE or GUARANTEE of daily rewards for each unit you owned – Similar to WCM and Telexfree. ie put $2,000 in AND get $4,000 back in 10 months.

        XYZ has NO FINANCIAL Commitment or Promise to the customer after they have delivered the educational package, opportunity to mine the coins and the ONE TIME commission on the product sale.

        The XYZ company’s ONLY commitment AFTER THE SALE OF THE PRODUCT is to provide the exchange where coins can be FREELY traded by the community and the ewallet for the value of coins to be held.

        The community determines the value of the coin based on the buying and selling exchange rates. – You should do a better job researching the business model before you put out ‘yellow journalism’ like this article – it is false and misleading and you are just as guilty of preying on peoples ignorance.

        The fact that XYZ has offices in Hong Kong, Bulgaria, Dubai, Thailand, Philippines does not mean they are a scam – this is stupid – Proctor and Gamble has offices in all those countries. The rest of the world believes that all the scams are based in the USA – Again this statement is preying on people’s ignorance.

        While it is true the USA will do its best to regulate most cryptocurrency business operations out of the USA – it does not mean that the rest of the world will. Cryptocurrency could be a real savior for the economic situation that our country is in but this article is not helping the cryptocurrency industry.

        This is a self serving article pure and simple – have some balls and mention the companies names and stop tearing down the industry from behind the ‘Dark Corners’ of your office.

        IMPORTANT As a part of FULL disclosure should you not mention that XYZ company and you were in talks about you representation and based on a mutual decision you are not representing XYZ company.

        Also I would like to know as FULL DISCLOSURE are you representing ANY cryptocurrency MLM companies?

        • Kevin Thompson

          Tom, if this upset you, get ready for part 2. This article was not about one particular company. But if the shoe fits… And this is not yellow journalism. It’s not journalism at all. It’s education. And if you recall the Zeek disaster, there was a tremendous LACK of education on the subject, which contributed to the billions of dollars being extracted out of UN-educated participants. There are dozens of cryptocurrency ponzi schemes out there. The SEC saw a sufficient number to justify pushing out its own press release on the subject: http://www.sec.gov/investor/alerts/ia_virtualcurrencies.pdf. Read it.

          • Jennifer Korol

            This doesn’t sound a lot like education to me. It seems like a one-sided opinion, but I will take the time out to read Part 2. Also, paraphrasing or quoting a facebook meme makes what you’re saying as a reply look a lot less credible.

          • Jodi Burke

            I have a question for you Kevin in regards to Zeek – if it was such a ponzi why did the government keep wires and checks and not return them to people – instead cashed them and a couple of years later did return some minus taxes? That is just one of many questions I have – no I was not one of them but know people that had that happen to.

        • Ken Labine

          YOU GO TOM!

          I DONT THINK THIS GUY KNOWS THAT WHEN HE BASHES OUR LADY WE ARE A FAMILY WE ARE ONE AND WE WILL FIGHT FOR HERS AND OUR OWN HONOR!

        • Ken Labine

          get a screen shot Tom, this guy like deleting the truth off his nonsense blogs

        • Tim McMurrain has avoided answering any of my questions, so let’s see how his statements hold up. By the way the ILLEGAL PONZI/ PYRAMID SCHEME I am taking about is Onecoin.

          Onecoin (and Tom McMurrain) QUOTE: “We sell education, not ‘investment’…”

          Oh reeeeaaaallly:
          https://onecoinfo.files.wordpress.com/2016/04/onecoin-split-strategies-new.png

          Here is an IN-DEPTH INVESTIGATION AND REPORT on Tim McMurrain’s latest hybrid pseudo-cryptocurrency/ ponzi/ pyramid scheme, Onecoin. As we are seeing TODAY as the Zeek Rewards Trial is beginning to play out before our eyes, the Prosecution messenger even prove that these scams are of pyramidal or ponzi nature to prosecute, as there are plenty of other ways to prosecute scams outside of the definition Tim likes to quote out of Black’s Law Dictionary. Needless to say, and as evidenced in the “investment strategy” of Onecoin, as illustrated above, the Onecoin scheme IS both a pyramid AND a ponzi.

          Additionally, Onecoin HAS NO BLOCKCHAIN (at present at least), and is therefore not even a cryptocurrency by any stretch of the imagination!!-This is just ANOTHER point which Tom has unwilling to argue (so he “blocks” and “reports” me to YouTube, etc), but which is spelled out clearly in the following Report; which is VERY WELL SOURCED … And, by the way, not from Tom’s alleged “blogger/ haters” (Ponzi Playbook Language), but primarily from its original SOURCE DOCUMENTATION.

          In just the two eeks since it was published there are over 54,000 views and nearly 4,000 Facebook “shares” alone, as the damning evidence of The Company’s scamming and deceptive history, Founders, Leaders and Partners is completely exposed for the nefarious SCAM that it unquestionably is.

          So, Tom, if you’d like to point out ANY false claims or misleading statements in this exhaustive REPORT, please feel free to do so. I’ll be here “holding my breath.” … or you can continue to dodge the questions, which is apparently your Modus Operandi???

          Ladies and Gentlemen, we present “The Bitcoin Killer” and “Crypto-Queen:” am ‘expert’ in cryptocurrency! LMAO!!!

          https://news.bitcoin.com/beware-definitive-onecoin-ponzi/

          PS. Onecoin and similar SCAMS are perfectly described for what they are in this article, as is the description of the career nature of these con-artists, like Tom. Don’t fall for these tricks. These people will look you in the eye while shaking your right hand, and meanwhile they are lifting your wallet from your back pocket with their left. Tom’s videos similarly look you (the camera) in the eye and tell you what upstanding and smart citizens these founders are. Meanwhile, people like Tom and Ruja Ignatova have both previously plead guilty to fraud from their own lips and were convicted of that fraud.

          Tom McMurrain is particularly dangerous because he actually “knows” a thing or two about cryptocurrency, blockchain technology and economics, even running a show on “Grant Cardone TV” about it, in which he talks about many cryptocurrencies as a guise for recruiting more suckers into his Onecoin downline.

          And even when Onecoin LIED AGAIN for the umpteenth time and changed the “fixed” and “finite” money supply which “is mathematically and impossible (for a legitimate cryptocurrency) to do, he’s still holding on and trying to milk a few more bucks! Even when, on June 11th, 2016 at CoinRush, London, Ruja Ignatova “doubled everyone’s coins and tokens” to reflect when they “switch blockchains,” and immediately announced an increase of coins by over 5,700% (with zero affect on the price/ alleged value), McMurrain championed the move, contrary to all Universal Laws of Economics, Supply & Demand, scarcity, etc, and DENIED that this dilution was actually “hyperinflation.”

          I just wonder what “New Opportunity” Tom will jump ship to next? Coince? Swisscoin? Yocoin? Wowcoin? Crypto 888?!?

          Will it be a ‘surprise’ “hack” which will collapse Onecoin? Will it be that they actually DO release it in an open market, leading to its IMMEDIATE COLLAPSE? Or will Onecoiners actually wise up and see that the “maths don’t work,” and that no one wants a pseudo-cryptocurrency worth even less than the 1/12th of the invented price (now $6.92) the a company is willing to give it for an over-priced and archaic OneLife Tablet!?!?
          OneLie Tablet:
          EBay: ~70€
          The Company: 550€
          To pay using “company” invented money, Onecon: *1,160 OC

          This implicates that even by Ruja and Onecoin standards and price dictates, they were going to charge over 7,000€ for a crap 70€ device (and retail it in OC for 8x that). You really just can’t make this stuff up! Oh! And that KYC nonsense! The his just keep coming!

          … But SURE,, Onecoin can EASILY acquire ONE MILLION MERCHANTS besides that itsy bitsy inconvenience of they themselves not even accepting it anywhere near the price they try to peg it to. But you know, Tom didn’t address this. It’s just like watching Paycoin unravel, in similar train-wreck and that’s EXACTLY what is happening with Onecoin finally!

          Go ahead and challenge the article. There’s 127 hyperlinks, including a significant amount of original source docs. So, good luck scamming!

      • Marcie Lipschutz Ward

        The bottom line is this… Unfortunately, it doesn’t matter what WE think about a business OR how the company describes itself. It’s ALL about how OUR GOVERNMENT decides to translate that. Using the SEC to describe a business as an Unregistered Security because they don’t like how or from where earnings are distributed, therefore closing it down or just cutting off any access to it, confiscating YOUR earnings as well, is their prerogative. AND the more money there is behind a business or building in it that OUR GOVERNMENT can confiscate to pay the attorneys, the more likely it is they WILL. Getting involved with something that even slightly resembles an opportunity that the GOVERNMENT will not like is a recipe for disaster in your own life that’s been played out with Zeek and others. In my view, there’s no guarantee of anything anymore because nothing gets proven in court for years, so it’s a choice and a gamble everyone has the option to take or watch. The stock market has all the drama ya need and its approved. If there’s even the slightest potential a company can be construed as an Unregistered Security in the eyes of our Government, unfortunately, there’s nothing stopping them…

      • Joey Frisicano

        Greetings Mr. Thompson. As referenced in your first paragraph, ‘this Bitcoin thing’, talking about how it was a new way to send “funds” overseas without any intermediaries (banks) is Reason # 1. trouble getting money out of India (and other countries) due to banking restrictions, # 2. banks’ outdated systems adding undue burdens on international business, #3. The current (corrupt) banking system with a centralized (corrupt) Federal Reserve, #4. While Bitcoin might have a strong future, it solves no immediate problems…. WHAT? So, a safe, #5, secure, #6, and completely private, #7, means of tranferring funds locally or globally for business or personal purposes, with no fees, “solves no immediate problems” ? Besides these 7 reasons, plus many others, I think Crypto-Currency is here to stay.

        I think Bill Gates and several knowledgable others are in agreement as well.

        It’s not going so well with several of the early pioneers facing jail time.? You mean the guy that used BitCoin, a safe, secure, and private means of buying and selling drugs? So that makes the method of payment questionable? That’s like saying that the speed boat or semi truck that was used to carriy the drugs should be scrutinized, regulated, or maybe even outlawed.

        Cryptocurrency was born out of a need for privacy. Banking regulations exist to eliminate privacy, making it easier for the government to root out fraud. (And stick their noses in our business)

        Yes, I believe Crypto-Currency is here today and here to stay. Of course newer technologies may
        become more usable and possibly even replace older versions. More interesting and detailed information may be found at funds 4 ever dot com.

        Two more subjects that were discussed, number one is the Crypto SCAMS. There is One out there, One Coin program that is, that stinks of a pure unadulterated ponzi if there ever was one, and there may be others. (When the coin is developed in a CLOSED environment, the value of the coin is driven purely by new enrollments into the scheme i.e. ponzi.) Again, that doesn’t make every company involved with crypto currency bad. Due diligence is advised.

        The other subject that was discussed, Does BitCoin work with MLM? I can’t think of a faster, or more cost effective, efficient way of getting the story out to the world than thru a NETWORK!

        A good example of what can be done is at unlimited millions dot com.

        Can ya say Amen?

        • Kevin Thompson

          Joey,

          The article was not written to serve as an indictment on Bitcoin. I’m a believer in Bitcoin, long term. Bitcoin is truly open and has amassed tremendous interest from consumers, software developers and merchants. Bitcoin is certainly not a ponzi scheme. The tech is fascinating and it’s changing the world. The article is designed to warn people that want to get involved with ALT-COINS mixed with MLM methodology. In those scenarios, it’s CURRENTLY dangerous.

          • Ken Labine

            The article is designed to warn people that want to get involved with
            ALT-COINS mixed with MLM methodology. In those scenarios, it’s
            CURRENTLY dangerous.

            REMEMBER THIS IS COMING FROM THE GUY WHO WAS CANNED FROM THE EXACT OPPORTUNITY HE NOW BASHING!

            • Kevin Thompson

              Time out, Ken. This article was not about any one particular company. There are dozens of ponzi schemes in the space. There were enough to prompt the SEC to issue a statement: http://www.sec.gov/investor/alerts/ia_virtualcurrencies.pdf. And for the record, I was never canned 😉

              I’ve got two things going for me here: First, I have a long history of doing things right. I have zero interest in bashing anybody on my site. Second, I have time. At some point in the future, this analysis will either be proven right or wrong. I suspect it will be less than 1 year.

              • Ken Labine

                o you reply in type how about you reply to this one
                How about you tell me why you deleted my comments pointing out all the flaws in this article

                https://www.youtube.com/watch?v=KTu3urtwEBM&feature=youtu.be

              • Kevin Thompson

                By all means, repost your comment. I did not delete it.

              • Ken Labine

                so then set the record st8 what happen between you and onecoin?

              • Ken Labine

                Time out, Ken. This article was not about any one particular company.

                LOVE HOW YOUR SMART ENOUGH TO SAY THIS!
                Now you cant be sued by Dr Ignatova right… because your being so vague putting zeek rewards when your buddy OZ relates onecoin to them all the time, hmmm reading some of your clients blogs?

              • Kevin Thompson

                Read Oz’s article again. He’s not a client. Never has been.

              • Ken Labine

                again all these comments are screen shot so feel free to delete and let me expose you for the scardy cat you are hiding behind a blog!
                Live hangout lets clear the air!

              • Kevin Thompson

                I’m answering your questions.

              • Ken Labine

                First, I have a long history of doing things right

                LIKE BEING A BITCOIN INVESTOR TALKING ABOUT HOW GREAT IT IS?
                That seems kinda hmmmm no?
                OR what about being let go from the onecoin opportunity for wanting to be part or it and represent it… ?
                So from what i know of you, and whom you represent and your title its self, MLM Lawyer, i ask,,, what have you done that is so right?

              • Ken Labine

                There were enough to prompt the SEC to issue a statement: http://www.sec.gov/investor/al….
                YES i read this im still confused why you bring this up
                or you just agreeing you really just make a blog fill it with nonsense add a link to click and cash in from your ad sales?

              • Ken Labine

                And for the record, I was never canned.

              • Ken Labine

                Then what happen?

              • Ken Labine

                Second, I have time.

                If i was charing 125 an hour id take all the time in the world too, but others who come to your nonsense is coming for facts not to waste there time with your venom

              • Kevin Thompson

                It’s not venom. It’s a fair warning. With Zeek Rewards, there were no warnings and participants lost everything.

              • Ken Labine

                At some point in the future, this analysis will either be proven right or wrong. I suspect it will be less than 1 year.

                yup then you will delete this, but guess what!

                YOU MY FRIEND ARE ON MY RADAR! and the world will always know about the lawyer who was CANNED till you explain otherwise!
                From one internet marketer to another 🙂 Nice to meet you!

              • Ken Labine

                I suggest Kevin, you take these nonsense blogs down and go back under a rock and represent champs like Behind MLM make your money that way instead of pennies per ad selling ad space!

              • Kevin Thompson

                I do not sell ad space.

              • Ken Labine

                AND LASTLY, TELL YOUR READERS,

                Why did you delete my reply that tore into you with facts why not counter those facts instead you hit delete, your a brave one!

              • Kevin Thompson

                I did not delete your post, just like I did not delete Tom’s post. If you want to re-post, go ahead. But please stop hijacking this thread.

      • Ken Labine

        Kevin asked for this il post here to for you im nice like that!

        Kevin… Where exactly is this article wrong…

        ALLOW ME TO HELP SHOW YOUR FLAWS!

        I caught the Bitcoin bug two years ago, back in mid-2013.
        WELL
        YOU SHOULD OF BEEN ON THIS GOING BACK TO 2009 BAD TIME TO GET BIT BY
        THE BUG SO ALREADY SHOWS YOU DONT KNOW ABOUT SOLID OPPORTUNITY AS 4
        YEARS LATER YOU HEARD OF BITCOIN…

        I was hooked. I read as much
        as I could and even bought a few coins to test it out. I even started
        the website Bitcoin Lawyer on the hunch that there was an opportunity
        for legal services when it came to crypto-currencies.
        SO ANYONE WHO
        DOES A BIT OF RESEARCH MISSES THE BOAT/OPPORTUNITY BUT NOW CALLS HIMSELF
        THE BITCOIN LAWYER, WAY TO PUSH BITCOIN TO OTHERS WHEN IT WAS AT ITS
        PRIME! HOW MANY PEOPLE BOUGHT A 1200 COIN CAUSE THE “BITCOIN LAWYER”

        SAYS THIS IN PART 1,
        Politically, the concept of Bitcoin was appealing. The
        current banking system with a centralized Federal Reserve has always
        made me nervous.

        As time has gone by, I’ve become less interested.
        I WOULD TOO AFTER BUYING BITCOIN HIGH AND REALIZING IT!

        While Bitcoin might have a strong future, it solves no immediate problems for me today.
        I
        GUESS THIS GUY NEVER FLIES ON EXPEDIA, BUYS JEWLERY MUST NOT HAVE
        MICROSOFT FORGET ABOUT PAYPAL…. OVER 100,000 THOUSAND PLUS MERCHANTS
        ACCEPT BITCOIN ! WAKE UP!

        I experience zero difficulties transferring funds to merchants, friends or anybody else.
        MUST
        BE NICE LIVING IN USA WHEN YOUR DOLLAR IS THE DOLLAR OF THE WORLD, SEE
        HOW EASY THIS IS AFTER OCT 20, 2015 … AS YOU SAY YOURSELF AND
        CONTRIDICTING YOUR OWN STATMENT…
        I was hearing this at a time when I was aware of another client
        experiencing trouble getting money out of India due to banking
        restrictions.

        Long term, I think the Bitcoin technology might inspire banks to
        streamline their processes, adopting some of the blockchain technology
        to eliminate some of the costs associated with money remittance. Will
        Bitcoin trump the banks? Nope.
        WOW CAN I BORROW THAT CRYSTAL BALL YOU HAVE?

        Currently, Bitcoin related companies are trying to fit their square pegs
        into round holes by trying to comply with existing banking regulations.
        SUCH
        A BROAD STATMENT AND TO ME SO NOT TRUE, “BITCOIN RELATED COMPANIES”
        (Nice wording lmao, Guess it should be noted this guy was let go from Dr
        Ignatova hence where these blogs started)
        WHY WERE YOU LET GO?

        It’s not going so well with several of the early pioneers facing jail time.
        ANOTHER BROAD STATEMENT… WHO?

        Cryptocurrency was born out of a need for privacy.
        LMAO REALLY, THIS IS THE BITCOIN LAWYER TALKING HERE LMAO!

        Banking regulations exist to eliminate privacy, making it easier for the government to root out fraud.
        LMAO REALLY AGAIN, YOU MEAN THE FRAUD BANKESTERS WHO ARE WRECKING YOU COUNTRY THEMSELVES

        So…
        Within the span of a couple of years, Bitcoin has literally exploded onto the scene and become a household word
        WRONG AGAIN! 2009-2015 IS 6 YEARS! MR BITCOIN LAWYER YOU SHOULD KNOW THIS YOU KNOW DOT I AND CROSS T

        All in all, Bitcoin is developing into a solid service for users. It’s
        in a virtuous cycle where more good news begets more good news. It’s a
        topic I like and it’s a topic I understand.
        REMEMBER
        AS HE SAYS ABOVE, HE HIMSELF IS INVESTED IN BITCOIN SO HMMMM SEEMS
        MISLEADING YOUR GIVING ME ADVICE, YOU KNOW GIVING OPINON AND BEING
        INVESTED, IS THAT NOT A CONFLICT OF INTEREST, GUESS DR. IGNATOVA THINKS
        SO…

        Does Bitcoin work with MLM?

        THIS IS SIMPLY A STUPID
        QUESTION, THERE IS NO MLM INVOLVED WITH BITCOIN, UNLESS YOU CAN FINALLY
        EDUCATED ME TO SOMTHING IN THIS NONSENSE ARTICLE…

        The purpose of this article is to serve as a warning
        I feel as though there’s a cryptocurrency ponzi scheme bubble brewing in the network marketing industry.
        HERE
        COMES THE TRUTH GUYS, THIS GUY IS WHINING AS HE WAS LET GO FROM THE
        ONECOIN FAMILY HIMSELF NOW HE IS INDIRECTLY BASHING US LIKE A LITTLE
        BABY!,
        THE PURPOSE OF THIS ARTICLE IS TO GENERATE ACTIVITY AND
        CLICKS MAKE A FEW BUCKS IN ADS (NOTICE HOW HIS BLOGS ARE LITTERED WITH
        THEM) AND TO PICK A BATTLE WITH WAY TOO MANY FELLOW ONECOIN REPS WHO
        DIDNT GET KICKED OUT AND ARE NOT WHINING… THIS GUY DOESNT KNOW THE
        MEANING OF CONFLICT OF INTEREST THIS BLOG (AS A BITCOIN INVESTOR) IS
        EXAMPLE

        It reminds me of the environment during Zeek Rewards. I’m afraid this
        cancer has already grown into a mass larger than what we saw with Zeek.
        LMAO
        JUST LIKE ALL THE OTHER BLOGGERS HAHAHAHA YOUR TOO FUNNY SO IS THIS THE
        “RESEARCH” YOU DID PRIOR TO THIS BLOG GO TO GOOGLE, LIKE YOU YOURSELF
        IS A MLM LAWYER…
        TO ME MLM SIMPLY MEANS MANY LOSE MONEY, HERE YOUR A LAWYER AND THAT YOUR TITLE, TWO WRONGS DONT MAKE A RIGHT!

        “now’s the time to invest in XYZ alt-coin, which is destined to be the next Bitcoin.”
        SO
        ARE YOU SAYING NOTHING WILL BE BIGGER THEN BITCOIN YOU KNOW YOUR
        INVESTMENT… JUST LIKE IM SURE EVERYONE THOUGH NOTHING WOULD BE BIGGER
        THEN MYSPACE, WHATS FACEBOOK IM STILL ON MYSPACE… SAYS NO ONE ANYMORE!

        Consumers, completely uneducated about the technology behind
        cryptocurrency and unable to decipher good from bad, are making serious
        mistakes.
        YES LIKE COMING TO YOU AND LISTENTING TO THIS NONSENSE THAT YOUR JUST SPEWING OUT OF HATE!

        Plus, there’s the added excitement of investing in a coin cheaply with
        the hopes of it rising in value 1000% similar to Bitcoin’s climb.
        THAT
        YOU WERE WAY TO SMART TO MISS… O WAIT YOU INVESTED IN 2013 LIKE ALL
        THE OTHER SHEEP… EVEN MORE REASON ID BE MAD ABOUT GETTING THE BOOT
        FROM THE NEXT BIG THING…

        There’s a chance the cryptocurrency program is a cleverly disguised ponzi scheme.
        NOT
        THIS GUYS, THE LAWYER MAKES SURE HE CANT GET SUED, EVERYWHERE HE MAKES A
        BOLD STATEMENT THE “CHANCE” NOT SAYING ONE WAY OR ANOTHER JUST SPEWING
        VENOM…

        When the coin is developed in a CLOSED environment, the value of the
        coin is driven purely by new enrollments into the scheme i.e. ponzi.
        WOW WHAT A LACK OF EDUCATION HERE, FIRST THING PONZI IS A GARANTEE SO WHY RELATE A GARANTEE TO THIS SENTENCE? AGAIN WRONG!
        BUT
        THIS HAPPENS IN A CLOSED OR OPEN ENVIROMENT JUST WANTED TO POINT OUT
        ANOTHER BITCOIN LAWYER LET GO FROM ONECOIN FAIL… AGAIN I ASK , TELL
        THE WORLD, WHY WERE YOU DISMISSED FROM DR. IGNATOVA? IL BE GLAD TO DO A
        BLOG ON THAT 🙂 . You should really just go back to your ManyLoseMany
        Lawyer approach and dont come messing up a great thing for the follows
        of your nonsense!

        The ponzi promoters that push these programs look like you and I. The
        difference is that they spend most of their time building their
        “businesses” in the dark corners of the world, seemingly beyond the eye
        of the U.S. government.
        FUNNY YOU SHOULD SAY THIS, WHAT WAS YOUR INITIAL REASON DR IGNATOVA REACHED OUT…
        BESIDES
        NORTH KOREA WHAT IS ONE OF THE TOUGHEST COUNTRIES TO DO HONEST BUSINESS
        IN AS FAR AS RED TAPE THIS IS WHY THE DELAY IN US BUT AGAIN JUST SHOWS
        YOUR IGNORANCE

        They’re hanging out in places like Thailand, Hong Kong and China. They
        know they’re doing wrong, which is why they’re building away from their
        homes, amassing as much money as possible before the market wises up to
        the industry.
        OMGOSH YOU ARE SOMTHING ELSE LOL, we both know China is
        one of the largest players in the coin, o wait, they are also the
        worldest largest population aih ya!

        In Zeek Rewards, there was about a two year run where the ponzi
        promoters made their money before the market figured out the game.
        NOTE
        HOW HE KEEPS THROWING OUT ZEEK REWARDS NOTHING TO DO WITH WHAT HE TRULY
        BASHING BUT HE CREATING NONSENSE OTHER BLOGGERS ALSO DO…

        The victims are uneducated and faceless, which makes their work that much easier.
        YOU HAVE PERSOANLLY MEET OUR FOUNDER, HOW FACELESS IS SHE?

        I’m hopeful this article educates people and starts a discussion.
        DAM
        RIGHT IT DID, LETS DO A LIVE HANGOUT, COME ON, IF ANYONE GONNA BE BRAVE
        ENOUGH THAT YOU YOUR SUCH A SMART EDUCATED MAN WHO KNOWS IT ALL 🙂 WHO
        ALSO HAS NOTHING TO HIDE WHOOT WHOOT…
        WHEN IS GOOD FOR YOU?

        To read Part 2, click here. In Part 2, we dive more into the specific law and I provide some tips for consumers.
        ALSO
        NOTE THIS GUYS, YOU CLICK HERE YOU GO TO NEW BLOG WHERE HE MAKES MORE
        MONEY SELLING YOU ADVERTISING SPACE . THIS IS A CLASSIC TACTIC IN THE
        MARKETING WORLD (Think of the you tube videos part 1 part 2 etc. but
        pushing ads when you watch the video)
        He just doing it with a blog!

        Dont
        worry il do round two with ya dont have time to go over that one just
        yet 🙂 maybe you can go and edit it and make yourself sounds smarter
        before i get there 🙂

        Feel free add me to facebook kevin i want
        to set up a time we can talk live on air if i was you id want to get the
        message st8 or no il help make sure I get the right message out if you
        dont want to give me your side of the story im ok with going off what im
        told as this article its self is clear sign you pissed at getting
        canned! Have you been fired before? Does it sting?

        http://www.Facebook.com/kenlabine
        Get correct info here http://www.OneCoinFamily.com

        ps. Do note Kevin i have screen shot so dont try to delete this message!

        PSS.
        DO NOTE! DONT link your facebook account this guy then gets your
        information through his blog site just another dirty marketing tactic!

      • Deborah Lynne

        It’s apparent that some of the commenters here are suffering from willful ignorance.

        As we both know, Attorney Kevin Thompson, the facts that you stated here will not cease to exist simply because they are being denied or ignored.

        • Mike DiGaetano

          So you know him personally? He has never made a mistake or messed up? What is your proof? Or are you just jumping on the KT bandwagon?

      • Mike DiGaetano

        I want facts! not behind MLM blog posts or blog posters opinions. Reputable links or reports.

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