100bitcoin (OP)
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March 22, 2014, 10:01:41 PM Last edit: June 04, 2015, 04:45:03 PM by 100bitcoin |
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www.100bit.co.in provides a platform to buyers and sellers to directly exchange FIAT and Alt coins with each other against bitcoin. Joining is free and exchange cost per trade is 0.1% of the trade amount. Please note that, right now, we are in BETA. Also https is not yet implemented, though CloudFlare SSL is already there. If your country/currency is not in the list on registration page, please inform us here. Your feedback for any improvement is highly appreciated.
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5thStreetResearch
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March 22, 2014, 10:17:05 PM |
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dont really see it happening when described as ponzi-ish but GL
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100bitcoin (OP)
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March 22, 2014, 10:36:15 PM Last edit: March 23, 2014, 07:33:10 AM by 100bitcoin |
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dont really see it happening when described as ponzi-ish but GL
First of all thank you for your response. I call it Ponzi flavour, because the referral commision is going up chain and I found a lot of people here are versed with this word 'Ponzi'. But if you are acquainted with MLM ...the joining to this club is actually that. But I'm afraid many out here may not identify this referral commision distribution as MLM. So I have drawn the resemblance of Ponzi. Moreover, Ponzi or MLM, whatever one call it, this starts and ends at joining only. Rest is normal business activity as an usual member.
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odolvlobo
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March 23, 2014, 12:05:25 AM |
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That is called a pyramid scheme.
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Join an anti-signature campaign: Click ignore on the members of signature campaigns. PGP Fingerprint: 6B6BC26599EC24EF7E29A405EAF050539D0B2925 Signing address: 13GAVJo8YaAuenj6keiEykwxWUZ7jMoSLt
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100bitcoin (OP)
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March 23, 2014, 07:32:02 AM |
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That is called a pyramid scheme.
Well may be. But is that legal if I use it for Bitcoin service ? I have seen direct selling companies like Tupperware, Amway etc. use this method to gain members and thereby sell their product.
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Dogtanian
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March 23, 2014, 02:11:32 PM |
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That is called a pyramid scheme.
Well may be. But is that legal if I use it for Bitcoin service ? I have seen direct selling companies like Tupperware, Amway etc. use this method to gain members and thereby sell their product. I think someone was actually busted for selling a Bitcoin ponzi or pyramid.
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turvarya
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March 23, 2014, 02:27:53 PM |
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That is called a pyramid scheme.
Well may be. But is that legal if I use it for Bitcoin service ? I have seen direct selling companies like Tupperware, Amway etc. use this method to gain members and thereby sell their product. I think someone was actually busted for selling a Bitcoin ponzi or pyramid. Depends on the country
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Dogtanian
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March 23, 2014, 02:36:07 PM |
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That is called a pyramid scheme.
Well may be. But is that legal if I use it for Bitcoin service ? I have seen direct selling companies like Tupperware, Amway etc. use this method to gain members and thereby sell their product. I think someone was actually busted for selling a Bitcoin ponzi or pyramid. Depends on the country For Bitcoin or ponzis? Or maybe even both?
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turvarya
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March 23, 2014, 02:44:14 PM |
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That is called a pyramid scheme.
Well may be. But is that legal if I use it for Bitcoin service ? I have seen direct selling companies like Tupperware, Amway etc. use this method to gain members and thereby sell their product. I think someone was actually busted for selling a Bitcoin ponzi or pyramid. Depends on the country For Bitcoin or ponzis? Or maybe even both? Ponzi Schemes are not illegal in every country and sure, not every court in a country would consider BTC a real currency
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newIndia
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March 23, 2014, 03:21:15 PM |
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@100bitcoin What I have learnt from your project idea, it has nothing to do with ponzi. U r simply giving referral commission and that is absolutely legal in marketing world irrespective of the country. Unnecessarily dont attach 'Ponzi' stamp to your project. Try to provide proper service... and that is what all we need.
p.s. Dont think like Mark Karpeles. Think like Andreas Antonopoulos. Best of Luck.
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DannyHamilton
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March 23, 2014, 03:22:37 PM |
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Trendon Shavers (also known as Pirate40 on bitcointalk) is currently being prosecuted in Texas by the U.S. government for operating a bitcoin Ponzi Scheme.
According to U.S. law, your scheme is not a MLM (Multi-level marketing) organization or Direct Selling organization. In order to be considered a legal business (such as Amway, Tupperware, etc) in the U.S. you need to have actual products that are being sold to customers. There are a set of other specific conditions that the company has to meet to be considered a legal business in the U.S.
If you are not in the U.S. you'll need to learn more about your own local laws to determine if your scheme is illegal.
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Dogtanian
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March 23, 2014, 04:14:40 PM |
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Trendon Shavers (also known as Pirate40 on bitcointalk) is currently being prosecuted in Texas by the U.S. government for operating a bitcoin Ponzi Scheme.
According to U.S. law, your scheme is not a MLM (Multi-level marketing) organization or Direct Selling organization. In order to be considered a legal business (such as Amway, Tupperware, etc) in the U.S. you need to have actual products that are being sold to customers. There are a set of other specific conditions that the company has to meet to be considered a legal business in the U.S.
Doesn't Herbalife operate like them too? So does the US recognize it as a currency now?
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100bitcoin (OP)
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March 23, 2014, 04:27:05 PM |
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@100bitcoin What I have learnt from your project idea, it has nothing to do with ponzi. U r simply giving referral commission and that is absolutely legal in marketing world irrespective of the country. Unnecessarily dont attach 'Ponzi' stamp to your project. Try to provide proper service... and that is what all we need.
p.s. Dont think like Mark Karpeles. Think like Andreas Antonopoulos. Best of Luck.
Thank you for your suggestion. I have updated my first post accordingly. @DannyHamilton Thank you for the heads up. I was not aware of Trendon Shavers. I would like to know if Ponzi, Pyramid or MLM laws are applicable to Bitcoin ? I have no plan to accept any FIAT in the whole program.
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DannyHamilton
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March 23, 2014, 04:38:49 PM |
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@DannyHamilton Thank you for the heads up. I was not aware of Trendon Shavers. I would like to know if Ponzi, Pyramid or MLM laws are applicable to Bitcoin ? I have no plan to accept any FIAT in the whole program.
That depends on what jurisdiction you are in. If you are in the U.S. then those laws are absolutely applicable to Bitcoin. Trendon Shavers is currently being prosecuted by the U.S. in a court in Texas for operating a Ponzi scheme that did not accept any FIAT (he only accepted Bitcoin) in the whole program.
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Dogtanian
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March 23, 2014, 05:01:56 PM |
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@DannyHamilton Thank you for the heads up. I was not aware of Trendon Shavers. I would like to know if Ponzi, Pyramid or MLM laws are applicable to Bitcoin ? I have no plan to accept any FIAT in the whole program.
That depends on what jurisdiction you are in. If you are in the U.S. then those laws are absolutely applicable to Bitcoin. Trendon Shavers is currently being prosecuted by the U.S. in a court in Texas for operating a Ponzi scheme that did not accept any FIAT (he only accepted Bitcoin) in the whole program. Would they prosecute if somebody operated a ponzi or pyramid with Pogs or Pokemon cards? lol
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DannyHamilton
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March 23, 2014, 05:16:26 PM |
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@DannyHamilton Thank you for the heads up. I was not aware of Trendon Shavers. I would like to know if Ponzi, Pyramid or MLM laws are applicable to Bitcoin ? I have no plan to accept any FIAT in the whole program.
That depends on what jurisdiction you are in. If you are in the U.S. then those laws are absolutely applicable to Bitcoin. Trendon Shavers is currently being prosecuted by the U.S. in a court in Texas for operating a Ponzi scheme that did not accept any FIAT (he only accepted Bitcoin) in the whole program. Would they prosecute if somebody operated a ponzi or pyramid with Pogs or Pokemon cards? lol That would depend on whether or not the Pogs or Pokemon cards were found to pass the Howey test.
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serje
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March 23, 2014, 06:10:31 PM |
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Well mate I would suggest you to stay clean just like you did with your last project!
I wouldn't consider it stupid or a failure!
It's your experience and you should lean from it!
And believe me honest money are earned hard!
Make another one just like the one before but with less time-frame!
In the end people will come and play but until then you will have to work hard for it!
what you earned maybe is nothing ... but in time you might earn more!
Don't expect 100 people to just jump right on your game!
Build a slow and steady history and in time you will earn more!
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Space for rent if its still trending
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newIndia
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March 23, 2014, 07:07:27 PM |
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Trendon Shavers (also known as Pirate40 on bitcointalk) is currently being prosecuted in Texas by the U.S. government for operating a bitcoin Ponzi Scheme.
According to U.S. law, your scheme is not a MLM (Multi-level marketing) organization or Direct Selling organization. In order to be considered a legal business (such as Amway, Tupperware, etc) in the U.S. you need to have actual products that are being sold to customers. There are a set of other specific conditions that the company has to meet to be considered a legal business in the U.S.
If you are not in the U.S. you'll need to learn more about your own local laws to determine if your scheme is illegal.
@DannyHamilton As I can see OP has described his plan as direct commision and indirect commission distributed in a chain of members. I dont see any problem in direct commission. But do u think even indirect commission distribution can be regarded as illegal under any law ? As I have read, Trendon Shavers had return liability, which is obvious in any Ponzi and that is why they are destined to fail at some point of time. But this is not the case here. Referral commissioning happens even in banks when an agent gets a new customer for the bank and that commission goes upto the team leader or higher ups. They are not Ponzi. I think terming anything that distributes commission as Ponzi is wrong.
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DannyHamilton
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March 23, 2014, 07:18:52 PM |
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Trendon Shavers (also known as Pirate40 on bitcointalk) is currently being prosecuted in Texas by the U.S. government for operating a bitcoin Ponzi Scheme.
According to U.S. law, your scheme is not a MLM (Multi-level marketing) organization or Direct Selling organization. In order to be considered a legal business (such as Amway, Tupperware, etc) in the U.S. you need to have actual products that are being sold to customers. There are a set of other specific conditions that the company has to meet to be considered a legal business in the U.S.
If you are not in the U.S. you'll need to learn more about your own local laws to determine if your scheme is illegal.
@DannyHamilton As I can see OP has described his plan as direct commision and indirect commission distributed in a chain of members. I dont see any problem in direct commission. But do u think even indirect commission distribution can be regarded as illegal under any law ? As I have read, Trendon Shavers had return liability, which is obvious in any Ponzi and that is why they are destined to fail at some point of time. But this is not the case here. Referral commissioning happens even in banks when an agent gets a new customer for the bank and that commission goes upto the team leader or higher ups. They are not Ponzi. I think terming anything that distributes commission as Ponzi is wrong. The OP has modified his post and added additional details after I responded. Initially, he was just claiming that he had a "Poniz based idea", without any details about how it would work. What he is now describing is not a Ponzi scheme, but more likely a pyramid scheme which is also illegal in the U.S. In the end, it will really depend on the details of the business. If the entire business consists of nothing but recruitment, and passing registration fees upchain as a "referral bonus", then it will be illegal in the U.S. If, on the other hand, bonuses are based on the retail sales of actual products and services, then the OP has a much better chance of creating a legal business. In a situation like this, the devil is in the details. The OP would be best served to retain the services of a lawyer that is familiar with the laws regarding network marketing, direct marketing, and multi-level marketing in the jurisdiction that he wants to operate his business. Otherwise, he is highly likely to run afoul of laws and regulation in that marketplace.
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Phildo
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March 23, 2014, 07:29:03 PM |
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Tupperware, amway, and herbalife are different because at least there is a product to sell somewhere in there.
It's impossible to guarantee everyone a profit because eventually (especially in bitcoin) you will run out of money.
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