Quote from: NicholasB54 on February 10, 2014, 10:30:50 AM

Quote from: Warren on February 10, 2014, 08:25:22 AM

To complicate things further, original coin investors will also be rewarded for recruiting new investors to buy the coin

Where I'm living that, I believe, is the essence of a pyramid scheme and illegal

My understanding of what defines a pyramid scheme, (in most countries anyway), is that a pyramid scheme generally offers no real product or service.

In a a pyramid scheme there is no way for the people at the bottom of the pyramid to make any money. The only way to make money in a pyramid scheme is to sign-up new members for a fee...

With my proposed coin the majority of the income (for most coin investors anyway) is going to come from the dividend from the mining shares that are attached to each coin.

The fact that there is also a way to earn money (on two levels instead of one), from introducing the coin to others doesn't make it a pyramid scheme...

If that is a serious issue it is not even a central part of the idea, and could be scrapped completely.

I only considered it a way to increase the adoption rate quicker. We could, (just like cex.io does) offer a normal one-level affiliate program for those who want to take part in that.

I know that most people here (and a lot of "intelligent" people in general), have a negative view on MLM of any kind. Probably this comes from past negative experiences or from hearing horror stories of unethical MLM companies...

I have personally never had any involvement with multi-level marketing, (apart from being dragged along to a couple of Amway meetings by enthusiastic friends a couple of times many years ago), but I do think it can be a very good way to recruit a large customer base quicker than normal, as past customers have an incentive to promote your products.

Some people even go as far as considering any affiliate marketing to be a scam! Since I have made most of my money from (ethical) affiliate marketing over the last 13-14 years and it has been the foundation for my business I obviously don't share that view...