As the number of people involved in the fraud increases, digital currency will appreciate. During the appreciation cycle of digital currency, the number of digital currency that participants can get will also increase, and participants, including the lowest-level participants, will also gain something. However, when entering the depreciation cycle, the bottom participants often lose a lot.
On 20 17, Jiangsu Internet Finance Association issued the Guide to Internet MLM Identification, naming 26 so-called digital currency projects that are or are suspected of illegal pyramid schemes.
Extended data:
Distinguish whether digital currency is a pyramid scheme currency;
Distribution mode
Virtual currency is not issued by a specific monetary institution, but is generated by a large number of calculations according to a specific algorithm, which is a decentralized distribution method. Each different terminal node is responsible for maintaining the same account book, and this maintenance process is mainly to package and encrypt the transaction information through algorithms, while MLM coins are mainly issued by an institution to make profits by pulling people's heads.