this smells like a pyramid scheme where the ones on top really only benefit unless the lower people get more referrals under them.
As we all together don't know what BTC, LTC and all the other coins will be worth in a year or two, this is a wrong approach, because nobody now can say what "really only benefit" in this case means. Maybe 0.001 BTC is worth a thousand dollars in two years. Or as jmerme01 put it:
There is always a chance that some of these coins skyrocket in value, and the drips actually turn out to be worth a lot more than you expected. And hell, its free anyway, so there's no real downside.
You have two options: a) Just register and get coins for free. -> What's bad about that?
b) Register, get free coins, tell others and get even more free coins. -> What's bad about that?
