This Week in Crypto: Bitcoin Difficulty Plunges, Binance To Make Huge Business Deal, China’s Digital Currency Is Coming
This Week In Crypto is a weekly segment from the Live Coin Watch News team, providing readers with a fun, succinct, and pertinent summary of the most important Bitcoin-related events in the past week or two.
Bitcoin Holds $6,000s
On the weekend, Bitcoin plunged lower, falling from the mid-$6,000s range to $5,800 over the course of a day, marking a loss of over 10%. The drop to $5,800 made many crypto traders feel wary; understandably so, within the next day, Bitcoin is going to close its candle for the month of March, and it closing under the key historical support of $6,400 was something analysts felt would be a precursor to a further drop. But at the eleventh hour, bulls stepped in, taking Bitcoin all the way to $6,475 as of the time of this article’s writing, just under 12% higher than the bottom.
Crypto Companies Announce Coronavirus Initiatives
Unfortunately, the past few days have seen the outbreak of COVID-19 rapidly worsen; there are purportedly over 500,000 cases of the virus, many of which are located in the U.S. and Italy. With this, there’s been a mass mobilization of industry — with companies from Apple and Tesla to Dyson (yes, the vacuum company) and Ford making supplies or contributing dollars to stem the spread and to keep our health workers alive. Bitcoin and crypto companies, too, are joining the fight. Binance, for instance, has revealed a social media campaign during which the company will donate $1 (up to $1 million) for each retweet with the accompanying hashtag #CryptoAgainstCOVID. Ripple has followed suit, committing to donate $100,000 to two Silicon Valley-centric COVID response funds.
Bitcoin Difficulty Drops 16% After Price Crash
If your Bitcoin transactions were abnormally slow and slightly expensive over the past 10 days, you’re not alone. Due to the crypto market’s crash sustained earlier this month, miners with low profit margins have been forced to turn off their machines to avoid mining coins at an unprofitable rate. And as a result, block times have slowed. But a fix was just implemented. On Thursday morning, the difficulty of the Bitcoin network adjusted -16%, the second-largest drop in difficulty in the blockchain’s history. This adjustment makes it easier for miners to “find” Bitcoin blocks, thereby decreasing transaction times.
China Still Committed To National Crypto Asset Project
According to a report from The Global Times published on March 24th, “industry insiders” say that China’s central bank is “one step closer to issuing its official digital currency.” The outlet’s sources explained that the PBOC and private companies — purported to include China’s largest banks and telecom and tech companies — have “completed development of the sovereign digital currency’s basic function and is now drafting relevant laws to pave the way for its circulation.”
Bitcoin Bull Case Gets Huge Boost With Fed’s “QE Infinity”
Announced Monday morning, the Federal Reserve will be implementing a series of programs to “support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy.” These programs include the purchasing of corporate debt, Treasuries, and mortgage-backed securities until the economy normalizes again. While the word “infinite” was not mentioned in the Federal Reserve’s press package on this news, many economists and analysts have dubbed these measures “QE Infinity,” as the central bank has seemingly put no limit on how many assets it can buy in the foreseeable future. Many believe that this validate Bitcoin’s bull case.
Binance To Acquire Crypto Data Site CoinMarketCap
According to a report from The Block, Binance is in the “final stages of talks to acquire” CoinMarketCap, the leading crypto data site by traffic and one of the top sites on the Internet (literally). The deal, sources say, will cost up to $400 million. While some have questioned the value of the site, seeing that its primary source of revenue seems to be simple advertisements, many believe Binance wants the site to gain access to the millions of people that pass through the site monthly.
Article Produced By Nick Chong
Nick has been enamored with cryptocurrencies since finding out about them in 2013. He now reports crypto- and blockchain-related news for a number of leading outlets.
This Week in Crypto: Bitcoin Cash and BSV See Halving, Booming Institutional Demand, Reddit Uses Ethereum
–This Week In Crypto is a weekly segment from the Live Coin Watch News team, providing readers with a fun, succinct, and pertinent summary of the most important Bitcoin-related events in the past week or two.
Bitcoin Falls Below $7,000
This week, Bitcoin rallied as high as $7,470. Unfortunately, since then the cryptocurrency has reversed, falling to $6,800 as of the time of writing this industry update. Traders have claimed that this correction is a technical one, pointing out that there were three key resistances around $7,400: a horizontal resistance that was made when Bitcoin crashed to $7,300 in October 2019, a descending trendline, and the 50-day simple moving average for the cryptocurrency. Despite the non-action, analysts are still bullish on BTC and the rest of the cryptocurrency market. BitMEX CEO Arthur Hayes, for instance, explained that while he could see Bitcoin revisiting $3,000, his year-end price target “remains $20,000,” which is 180% above the current price. As to why he thinks this is the case, Hayes mentioned the monetary and fiscal solutions enacted by the world’s governments and central banks over
“Everyone knows the shift is upon us, that is why central bankers and politicians will throw all of their tools at this problem. And I will reiterate, that is inflationary because more fiat money will chase a flat to declining supply of real goods and labour. There are only two things to own during the transition to whatever the new system is and that is gold and bitcoin.”
Bitcoin Cash and SV See Halvings
Over the past few days, both Bitcoin Cash and Bitcoin SV — the fifth and sixth largest cryptocurrencies by market capitalization, respectively — have experienced their block reward halvings, whereas the number of coins issued per block got sliced in half. As a result, both networks saw their hash rates and difficulty drop. The halving resulted in an instant 50% reduction in mining revenues for those operating on the BCH and BSV chain, forcing operators running on tight margins to turn off their machines or mine on other networks.
Fidelity Sees Booming Demand for Crypto
Fidelity Digital Assets — the crypto services division of Wall Street giant Fidelity Investments, a financial services firm with trillions of dollars worth of assets under management — has confirmed it has seen an uptick in interest. Speaking to Frank Chaparro of The Block,
a spokeswoman for the firm said that:
“From a trading perspective, we continue to onboard new clients every month and are seeing significant pipeline growth. […] And in recent weeks, we’ve seen more momentum across our business.”
The spokeswoman cited the fact that the narrative that Bitcoin and crypto act as safe-haven assets has started to spread amongst institutional investors.
Reddit’s Crypto Initiative: Ethereum-Based Points
Reddit has purportedly launched a crypto initiative called “Community Points,” which is a new points system that is based on Ethereum ERC-20 tokens. This was discovered by a user named “MagoCrypto,” who on Wednesday posted a video showing that on his Reddit app on his Android (Samsung), there was an integrated wallet with an Ethereum address, along with explanations of a digital coin/point system. A text from the Reddit feature
Mago shared reads:
“Community points are fully controlled by the people who own them. They live on the Ethereum blockchain, which is the same technology as Bitcoin to guarantee property rights and control. Even Reddit cannot take them away.”
Although Reddit has not yet publicly announced this feature, a spokeswoman for the social media forum giant said to industry outlet Decrypt that it is “working with one community to test a feature that represents a user’s involvement in a community.” Despite the positive news, Ethereum is trading flat on the day, according to LiveCoinWatch data.
South Korea’s Central Bank Launches Crypto Initiative
On Monday, South Korea’s central bank, the Bank of Korea, revealed that it has launched a pilot program for testing a digital won, which is slated to run to December 2021. A release outlining this move said the program will determine if there are a legal case and ample technical capability to launch a digital currency in South Korea. This comes just six weeks after the South Korean National Assembly passed legislation that will provide a comprehensive framework for the regulation and legalization of cryptocurrencies and Bitcoin exchanges.
Article Produced By Nick Chong
Nick has been enamored with cryptocurrencies since finding out about them in 2013. He now reports crypto- and blockchain-related news for a number of leading outlets.
ABBC Fights Coronavirus, Leading Blockchain into a Culture of Donation
ABBC Foundation will facilitate this donation event.
The team will consolidate all the donated ABBC Coins and will directly provide a proportionate fiat amount to be spent on materials and ways to prevent the spread of the outbreak.ABBC Foundation, the company behind the development of ABBC Coin, is now spearheading initiatives to raise donations for the fight against the coronavirus outbreak. The foundation is known for always lending a hand to people in need through many charitable events. Now that the coronavirus is spreading at an alarming rate, the ABBC team is quick to take part in a community-driven attempt to help mitigate the effects of the virus. The donation campaign started with the ABBC community located in South Korea. The community started raising donations that were used to purchase masks and other medical supplies that help prevent the spread of the virus. The initiative done in South Korea has caught the attention of the ABBC Foundation. As soon as the news about this ongoing humanitarian deed reached the foundation, CEO Jason Daniel Paul Philip was quick to mobilize the ABBC team to participate in this initiative.
The ABBC Foundation quickly put the power of blockchain in play. The team opened a wallet that can receive donations from ABBC holders who want to donate and participate in the fight against coronavirus outbreak. The team quickly informed key people in the community to spread the word about this initiative. Now, the ABBC community can utilize the power of blockchain in donation gathering for this pure and noble cause. ABBC Foundation will facilitate this donation event. The team will consolidate all the donated ABBC Coins and will directly provide a proportionate fiat amount to be spent on materials and ways to prevent the spread of the outbreak. This is to assure ABBC Coin holders that the donations will not be sold in exchanges and affect the prices of the ABBC market.
With this strategy implemented, any ABBC Coin donations that will be donated for the coronavirus campaign will stay in the designated wallet and can still be used in future donation campaigns as well. This means that the community’s donations can reach a lot of people and will have a lasting societal impact. ABBC Foundation is the first cryptocurrency-based organization to initiate this donation culture for those that need critical help in these trying times. Regardless, the ABBC team hopes that other cryptocurrencies and blockchain-based organizations will join the crowd in creating a force strong enough to keep the coronavirus at bay, possibly for good.
If the entire cryptocurrency community can show to the world how capable it is in implementing efficient solutions to combat world problems, then many more will join the crowd of people who believe in a better world brought about by a culture of charity and donations through blockchain technology. More than just offering cryptocurrency-based services, ABBC believes that it is capable of furthering the donation culture that could stir the hearts of all people, cryptocurrency users or not, to care for one another.
Dexau Enterprise Hedge Fund Investing in Cryptocurrency
Dexau Enterprise is a leading, privately-held alternative investment firm, managing approximately $13.25 millions across a broad range of credit and real estate strategies.
Dexau Enterprise LLC is an investment firm located in Cayman Islands that manages global equity portfolios for institutional investors around the world.The Dexau web platform offers you two investment formulas known as ROE63 and ROE7 that respectively return you +63% and +7% net profit on your investments. Users can withdraw their funds within 24 hours depending on their asset values, and can also use fiat currencies to deposit. To get started on the Dexau platform register an account here, and then proceed by depositing cryptocurrencies into the wallet. There is a range of other USD based payment methods aside from BTC, LTC and ETH that can be used to deposit including VISA, MasterCard, Maestro, bank wire transfer, Perfect Money and Payeer. Dexau Enterprise is a leading, privately-held alternative investment firm, managing approximately $13.25 millions across a broad range of credit and real estate strategies. For over 12 years, they have been investing on behalf of pension funds, corporations, endowments, foundations, sovereign wealth funds and individuals.
Dexau’s team is entrepreneurial and opportunistic. They have grown by pursuing strategies that complement and build on core capabilities and now have over 500 employees in their offices across the Cayman Islands, U.S. and Hong Kong. Dexau’s goal has been to allow institutional investors to participate across the complete spectrum of sub investment grade debt, to help them match their priorities in terms of risk and return. It encourages a collaborative environment that supports a diverse range of professionals. Users benefit from maximum returns with Dexau Enterprise, and investing is just that little bit easier. To learn more, visit the Dexau web platform.
BTCS has strengthened its cash position by raising $500,000 in a convertible note financing and applying for a $42,000 loan through the CARES Act Paycheck Protection Program, which is forgivable subject to certain restrictions.
Management Implements Cost-Cutting Initiatives
Silver Spring, MD – (Globe Newswire – April 21, 2020) – BTCS Inc. (OTCQB: BTCS) (“BTCS” or the “Company”), a digital asset and blockchain technology-focused company, today announced it strengthened its cash position in response to and to capitalize on economic dislocations as a result of COVID-19. BTCS has strengthened its cash position by raising $500,000 in a convertible note financing and applying for a $42,000 loan through the CARES Act Paycheck Protection Program, which is forgivable subject to certain restrictions. The Company has also implemented cost reduction measures, including lowering its annual independent director fee from $75,000 to $18,750 for 2020 and to $15,000 for 2021 and thereafter. Additionally, BTCS management agreed to defer 35% of their salaries for the
second quarter of 2020.
“The coronavirus pandemic has sent shockwaves through the global economy,” commented Charles Allen, CEO of BTCS. “While digital assets tumbled with the initial sell-off in equities in March, we believe this is an anomaly that could create opportunity for us to accumulate digital assets at attractive prices. With a strengthened cash position and lowered burn, we are in an ideal position to increase exposure to digital assets at depressed values.”
A core part of BTCS’ business plan is to establish positions in key digital assets. The Company believes Bitcoin, Ethereum, and certain other digital assets are a great store of value and can be an effective hedge against monetary debasement in the wake of multi-trillion-dollar
“In times of crisis, market participants often react emotionally, broadly disposing of assets. We believe this is what happened in recent weeks in the digital asset space,” continued Allen. “Moving forward, buoyed by strong fundamentals, including their fixed and limited supply, we strongly believe Bitcoin and Ethereum will benefit from a flight to higher quality amongst digital assets. Conversely, we believe smaller cryptocurrency projects and their associated digital assets will likely be negatively impacted by the economic downturn, specifically if those projects need additional funding.”
With no active mining operations, BTCS believes it’s in a stronger position to capitalize on the ongoing market dislocation compared to some of its public company peers. Lastly, recent “shelter in place” orders have delayed development of the Company’s data analytics platform from its original timeline. As development progresses, the Company plans to provide additional updates.
BTCS is one of the first U.S. publicly traded companies focused on digital assets and blockchain technologies. BTCS plans to acquire additional digital assets to provide investors with indirect ownership of digital assets that are not securities, such as Bitcoin and Ether. We intend to acquire digital assets through open market purchases. We are not limiting our assets to a single type of digital asset and may purchase a variety of digital assets that appear to benefit our shareholders, subject to the limitations of the Investment Company Act of 1940. We are also internally developing a digital asset data analytics platform. The Company is also seeking to acquire controlling interests in businesses in the blockchain industry.
Bitcoin is expected to mature in 2020, but it’s early days for conclusions
There isn’t a single narrative Bitcoin is not attached to at the moment.
From its correlation to traditional stocks to its status as a safe-haven asset, each of these narratives has been dissected and analyzed for a better understanding of Bitcoin’s future. A recent report did the same, with the report analyzing Bitcoin’s maturity in the current market before arguing that Bitcoin could be on its way to replicate the bull run of 2017. However, various fundamentals were overlooked in the said analysis; a crucial misstep since their impact could potentially play a major role in the future.
“Bitcoin Divorcing Equities, Joining Gold” – Is it though?
One of the main points of discussion put forward in the report was the belief that the Stock market ‘shakeout’ in 2020 would eventually allow Bitcoin to translate more into a safe-haven asset. It was claimed that Bitcoin is becoming more uncorrelated to equities at the moment, and Bitcoin’s relationship with gold is apparently twice as strong as equities.
The attached chart would suggest that this is backed by data. However, people tend to forget that the present financial market situation is an anomaly that happens once every 100 years, one that has been punctuated by the ongoing COVID-19 pandemic. Bitcoin’s jump with Gold, for instance, only took place because the digital asset had undergone a quick recovery post the collapse on 13 March, and the same was common across other assets as well, including stocks. While speaking about a ‘divorce’ with equities, it must be noted that Bitcoin and S&P 500 have been on a similar recovery path since Black Thursday. Now, Bitcoin may have been more bullish, something that improved its uncorrelated metric with the S&P 500, but this was only due to its nature as a high sentiment beta asset.
It had been previously reported that over the past few years, whenever equities have undergone an uptrend or downtrend, Bitcoin has relentlessly followed its path, because it is still an asset with low stock capitalization. During an uptrend for S&P 500, Bitcoin would end up performing better than equities asset class, whereas during a downtrend the losses will be more accentuated on Bitcoin’s part, in comparison to stocks. Until Bitcoin’s market cap improves, it is more likely to continue such a trend. Therefore, although Bitcoin will eventually translate towards a store-of-value mechanism, it is a bit optimistic to hope to see that happen over the next few years.
Volatility Shift favors Bitcoin, but halving could be a game-changer
Additionally, the report also mentioned that Bitcoin has been less than volatile than stocks this year, giving the edge to Bitcoin. The fact is technically correct, but the impact of the Bitcoin halving has not been taken into consideration. In less than 19 days, Bitcoin will undergo its 3rd halving. This event will lead to fundamental changes to the digital asset class, with the volatility possibly significantly different in a couple of months. Hence, it is isn’t likely to maintain a similar pattern in the future. Being optimistic about Bitcoin is a sentiment. Eventually, it will cross its all-time-high but, like any other maturing asset, Bitcoin requires time as well and 2020 is all about evolving as a mature asset class.
Article Produced By Biraajmaan Tamuly
Biraajmaan is a full-time journalist at AMBCrypto covering the US market. A graduate in Automobile engineering, he writes mainly about regulations and its impact with a focus on technological advancements in the crypto space.
Bitcoin’s limited capacities may be hindering journey towards bankless economy
A bankless world seems exciting.
There’s no central authority keeping track of transactions, there’s no identity leak, and everything is under individual control. However, as many still see Bitcoin as being in its experimental phase, a completely bankless world feels like a distant dream. Ryan Sean Adams, the host of the Bankless podcast, recently spoke about a few things that need to be taken care of to realize a complete bankless economy. Listing Bitcoin’s limited capabilities as the main reason,
“You can only do two things with Bitcoin. Hold it and watch the price go up or down, and transact by sending it from one place to another. Everything else on Bitcoin requires something else[an external upgrade].”
The main vision of a decentralized bankless economy is this – Cryptocurrencies should be able to be borrowed, lent, used in paying bills, and almost every other thing fiat currency facilitates. When virtual currencies can do this, only then can there be an efficient bankless system in place. But Bitcoin, at the moment, is dependent on centralized sidechains and traditional banks to be able to function properly.
Along the same lines, Adams opined,
“When I say bankless, it doesn’t mean we’re going to eliminate all banks. That’s not the goal; we’ll need fewer of them to accomplish core things in a public way. Financial tools like borrowing and lending against collateral you already have, that can be a public good too. And that’s a pretty powerful concept.”
On the other hand, Ethereum was highlighted by Adams as a much more advanced and efficient crypto coin by design, in comparison to Bitcoin. In fact, it has been established by now that in many ways, ETH is indeed money. But the question is – Is ETH a good form of money? Ethereum’s monetary policy is fluid and focused on maximizing chain security; thus itneither has a fixed hard cap nor a clear inflation curve for the future. How will Bitcoiners be convinced as many of them believe that the fixed hard cap economic model is the only valid economic model for economics and crypto? This is a question that needs to be addressed. Interestingly, Bitcoin maximalist Anthony Pompliano, while discussing the “ETH is money” narrative in one of his blog posts, had claimed that the idea behind the concept of ‘ETH is money’ was fundamentally flawed and that Ethereum was no different from fiat currency.
Article Produced By Rakshitha Narasimhan
A Psychology and Journalism graduate, Rakshitha focuses on UK and Indian markets. As a crypto-journalist, her interests lie in blockchain technology adoption across emerging economies.
Bitcoin Futures OI rises across exchanges; will price feel the change?
The Bitcoin Futures market was suffering owing to the volatility that had crept into the market following the fateful crash on 12 March.
However, as buyers entered the market, the price of BTC began rising, with the world’s largest cryptocurrency hovering around the $7k-mark, at the time of writing. This 86.27% recovery in 40 days invoked great interest flowing through exchanges. According to data provider Skew, there has been rising interest on institutional platforms like Bakkt and the Chicago Mercantile Exchange [CME]. As per the platform’s data, the exchanges marked a new peak in terms of Open Interest [OI] since Bitcoin’s fall in March. The OI of Bakkt had fallen to $4.8 million by 13 March and it has been toiling since. The investors had also become dormant, with both the volume and OI recording a slip. However, as the BTC market began to stabilize, some volume returned to the Bakkt market, along with the OI noting a sharp spike. On 22 April, Bakkt reported a volume of $17.3 million, whereas the OI had reached $6.9 million, a value not seen the slowdown.
The CME market also highlighted a sudden shift in interest, but with low volume. Unlike the Bakkt market, CME was noting more volume and OI, despite a market crunch. However, as the other Futures market saw the return of investors, CME saw the interest spike with a reduced volume. On 16 March, CME’s OI had fallen to $118 million while its volume was $414 million. However, as the OI grew back to $207 million, the volume shrunk to $164 million, indicating that fewer buyers were holding more positions. The overall Aggregated Interest in the market has also been rising and the same was clearly visible on the daily chart. The OI was seen to be marching upwards without interruptions. This increase in interest could suggest imminent price action in Bitcoin’s spot price.
Article Produced By Namrata Shukla
Namrata is a full-time journalist at AMBCrypto covering the US and Indian market. A graduate in Mass communication, while majoring in Journalism, she writes mainly about regulations and its impact with a focus on technological advancements in the crypto space.
The Multi-Level Marketing Industry has been around for decades starting out with home parties or Party Plan and predominantly seen by women as a way to supplement the family income. MLM companies never advertised on mainstream media, so relied on word of mouth and solicited recruitment of anyone inexperienced or otherwise, and that was all well and good until the hype of fulfilling dreams of getting rich beyond your wildest dreams, firing your boss, becoming your own boss all because of the unsustainable and complicated compensation plans created by the company to entice anyone that would listen.
Over time the MLM industry has evolved online and this is when scams escalated and the promise of untold wealth for doing nothing really became a mindset. Some companies have products albeit a few making outrageous claims about the benefits, but many don't have a product or service or at the very least they portray a facade of digital products that could normally be accessed online for free. The latter has been dubbed a money game showcasing their gimmicky comp plans since the internet era. Fundamentally, if an MLM company pushes recruiting and is only interested in building a team to fill up a matrix in the compensation plan, not focusing on acquiring customers to buy their product, this is considered a pyramid scheme and very much a red flag.
There are programs that have failed, only to pop up later with a new name but similar model sucking in unsuspecting and usually desperate people looking to make an income online, or even worse believe the promise of getting rich quick. There are a number of individuals that keep launching new companies, all with matrix or binary comp plans then eventually closing them, then move on to the next, then another, and people losing money hand over fist with no recourse.
Common Sense. Do The Math
MLMs work by geometric expansion, where you get ten to sponsor ten, to sponsor ten, and so on. This is usually shown as an expanding matrix (looks very much like a "pyramid"!) with corresponding kick-backs at various levels.
The problem here is one of common sense. At a mere three levels deep this would be 1,000 people. At six levels deep, that would be 1 million people believing and expecting to make the amount of money promised to fulfill their dreams of becoming a millionaire. This, of course, must go on ad infinitum. This is proven to be unsustainable, there just wouldn’t be enough people in the world, let alone interested prospects, not to mention the attrition or churn rate of recruits.
I have spoken to individuals who know its limitations and flaws and they just say, “That’s ok, at least I can make some money while it lasts.” What about the poor people that come in after you?
The ethical question is, Are MLMs a morally acceptable way to make money?
There are a few MLM companies that have been around for years that are legitimate as they concentrate on selling the products, some have even done away with their suspect compensation plan to stay in good stead with the Federal Trades Commission. (FTC) Illegal pyramid schemes do have a product, but critics say that many MLMs have a business model that focuses on recruiting “downline” and getting new distributors to buy the product, rather than on actual sales to consumers, making them akin to pyramid schemes.
When you take a look at the FTC, and what they have to say about MLM companies, you need to offer retail products in order to stay in compliance with the law. This can be confusing for some however what it means is a company must have retail products that can be purchased by customers only without them having to become a distributor and buy into the opportunity offered through the comp plan to get those products.
Multi-Level Marketing Is The “Brand”
Robert L. FitzPatrick is an expert in examining and revealing deception and fraud in Ponzi schemes, pyramid schemes, and bogus home-based businesses opined,
“MLMs do not have brands in the same way that conventional companies do. Some MLMs have almost no "customers" at all other than their own “distributors” and most of them last less than a year. Arguably, MLM can’t be understood by business analysts because it more closely resembles a cultic religion than a business.
MLM’s “brand” is not based on products or on company culture, customer loyalty, or on new technology or social or political values. The brands of all MLM companies are one and the same, "multi-level marketing" itself, the contradictory business model, involving recruiting your own competitors and “being your own customer.” Each and all require “endless chain” recruiting and they always produce the same outcome: the majority of all “commissions” wind up in the hands of the top 1% of recruiters, kind of like a pyramid scheme always does.”
Polarization Runs Deep
While this is the most difficult point to make, it is perhaps the most important. Anyone who has any experience with an MLM has strong feelings, either for or against, and this is the problem. Polarization runs deep.
There are a host of issues brought forth regarding multi-level marketing companies, often from former distributors and the disgruntled community is growing. If you search YouTube, you can find countless videos outlining the numerous problems with various MLM companies.
How MLMs Defend Themselves
There have been many arguments raised by MLMers.
“How can it be a pyramid scheme if it’s legal?”
Through some crafty loopholes. The fact that there is an actual product to sell allows them to operate and give the appearance of legitimacy. If you need to fill your matrix up to be eligible for commissions, it’s a pyramid scheme.
“You just haven’t found a good MLM yet.”
Wrong. A good MLM is an oxymoron. Multi-level Marketing is the brand. No matter what products they have, if the distributors are forced to recruit, then most are doomed to failure. The biggest problem with MLM’s is that most distributors don’t make a profit. In fact, a majority end up losing money. According to the FTC, an astounding 99% of recruited sellers lose money. From the FTC report: “MLM as a business model is the epitome of an “unfair or deceptive acts or practice”.
“But how is this any different from any other major corporation where the CEO makes the most money?”
Because the people below the CEO at legit companies get paid salaries and have actual benefits. They don’t depend on endless chains of recruiting new members and asking for money upfront.
Comp Plans Detailed
Jeff Babener, Babener & Associates/MLMLegal.com published a guide explaining the major types of plans. The two outlined below became popular since the advent of computer technology.
The Matrix Plan
This plan looks like a grid in which a distributor is limited to a certain number of recruits at each level. For example, in a 3-by-5 matrix, each level down to five can have only three downline distributors.
This type of plan is sometimes considered to be more gimmicky than others. Why? Because due to the width limitations, new recruits may find themselves placed underneath upline distributors who did not directly recruit them. In a three-wide matrix, for instance, the fourth distributor you personally sponsor would be placed under one of the first three distributors you personally sponsored (your first-level distributors).
Matrix plans have been subjected to attacks by regulatory agencies because they sometimes look like "a game." By and large, they have not had a successful record in the industry, and they foster nonproducers, which makes the upline distributors resentful. Nevertheless, several major companies operate matrix plans.
The binary plan is the newest on the scene. In a binary plan, a distributor is allowed to occupy one or more "business centers," each limited to two downline legs. Compensation is paid on group volume of the downline legs rather than a percentage of sales of multiple levels of distributors. In other words, payment is volume-driven rather than level driven. Sales volume must be balanced in the two legs to be eligible for commissions, which are paid at designated points when target levels of group sales are achieved.
The distributor may occupy multiple positions and may re-enter or loop below the other two leg matrices in which he or she has been active. There is no depth limit on payment but each matrix has a finite amount that can be paid out, thus necessitating involvement in multiple two-leg matrices.
The binary is the most controversial of plans. The binary had its unfortunate origins in the early 1990s in fraudulent gold coin programs, and its use later for other questionable products did not help. Those subsequent products were generally high-ticket one-time purchases such as consumer service or travel memberships, travel certificates, or overpriced prepaid phone cards. By the end of the 1990s, and after many legal challenges, the binary was not in great favor, and only companies like USANA, that had applied the concept to consumables, seemed to be around.
Critics charged that the implementation of binary plans brought on legal and business problems. Companies and distributors tended to promote the plan rather than the product, creating accusations of a "money game." Often plans had a one-time sale requirement which created a something-for-nothing atmosphere and appearance of payment for headhunting recruitment.
The multiple business center approach was often presented as a "purchase of a business center," an "investment," or a "front-load" of product. The ability to stack personal business centers also created the possibility of front-loading. The required balancing of sales volume between legs meant that hard work might yield no payoff and income would be forfeited because personal production did not count if balanced sales volume did not occur.
Finally, the multiple re-entry or looping created a "game-like" atmosphere in which an individual could end up in the downline of someone he or she had sponsored. For the distributor looking long term at a distributorship that might be sold, this "looping" also made it virtually impossible to place a value on a distributorship because no continuous downline genealogy could exist.
The Legitimacy Of Multi-Level Marketing
An issue in determining the legitimacy of a multilevel marketing company is whether it sells its products primarily to customers or to its distributors who must recruit new members to buy their products. In other words, does it emphasize getting products or services into the hands of consumers, or does it emphasize making money by finding new recruits? If it falls into the latter category, run away, fast. In the end, it’s the product, not the compensation plan that drives success.
Most people that are lured into these companies have little money to invest and want to believe the hype about utopian promises, get rich quick schemes, and how they can achieve great success. How they can fire their boss and be their own boss. Essentially, you are not your own boss. You have no control over the company, its products, people you recruit, or comp plan.
Multi-level marketing companies are not new. However, with the rise of social media, more people are becoming fed up with their tactics. In fact, there is an anti-MLM subreddit devoted to calling out MLM practices and product quality. If you are considering buying a product from or signing up with an MLM opportunity, do your research first.
Legitimate Company Investments Out Of Reach For Most? Not Any More.
The idea of investing in a legitimate company at a grassroots or shareholder level was out of the question. Only capital investors or entrepreneurs with millions of dollars were invited or could get involved. Hence the saying “the rich get richer and the poor get poorer”,until now.
Markethive has been created for the rank and file to achieve success on every level. Starting out with the ability to promote your business with all the inbound marketing tools including blogging platforms, email services, CMS, etc, which you would normally have to pay for is free to use at Markethive. Then there is the collaborative social media platform of like-minded individuals which of course is free. It’s free but you get paid to use it!
But the icing on the cake is the ability to become a shareholder in Markethive via the Entrepreneur One Loyalty Program for $100 per month. This involves not only your cumulative share of an ILP (Incentivized Loan Program) but a number of cottage businesses that are like your franchises where the earning potential on these genuine products is huge.
The first one being launched at the end of this month is the Banner Impressions Exchange. (BIX) Markethive does all the work, drives the traffic and you sell your share of impressions for the price you set. You keep all the profits from the impressions you sell, for one small flat monthly fee of $100. Now that’s an offer never seen before and allows regular folks like you and me to realize financial success in a real company, not driven by greed or imperialistic status.
Real Business. Real Services. Making Dreams a Reality
This is not MLM, this is a real business and social market platform with next-generation technology and provides services that are proven and products with substantiated and provable facts. These are products that are being used all over the internet for the purpose of creating exposure to all businesses and content. This medium is increasing exponentially as more companies choose to advertise online. It’s unfortunate that MLM victims are so accustomed to getting ripped off they find it difficult to determine a genuine company.
The Visionary and Founder of Markethive, Thomas Prendergastexplains in this video the conditioned mindset of the many that keep them trapped in the merry go round of living week to week, paycheck to paycheck. He also elaborates on the BIX that will be open for all Entrepreneur One upgrades to trade,
What do the rich buy? A millionaire mindset vs the poverty mindset
The Entrepreneur One Loyalty Program for $100 per month is limited to 500 with the rollout of the first of many franchises (BIX) expected to launch on May 1st, 2020. After that date, if there are any E1s left they will be available for the purchase of $1,500 per month. Until then, we are calling on people to beta test the exchange.
The Entrepreneur Two, Three, Four, etc, have been taken off the table to focus on the Apprentice and Journeyman subscriptions. More on that soon.
If you’re still thinking about upgrading to E1 to take advantage of the money machines Markethive has in store for you as well as becoming a shareholder, you only have 8 days left at the time of writing this. Don’t be a “shoulda, woulda, coulda”, that can be a costly exercise. You really can be your own boss with the control required to succeed in Markethive making it your primary source of income.
A Crypto/Blockchain enthusiast and a strong advocate for technology, progress, and freedom of speech. I embrace "change" with a passion and my purpose in life is to help people understand, accept, and move forward with enthusiasm to achieve their goals.
Understanding The Growth Of The Binary Trading Market
Binary trading has seen a rapid rate of incline over the last few years. This simplified method of investing reduces the need to spend hours researching and evaluating a stock's potential, resulting in an automated form of investment.
The Growth of the Binary Trading Market
There are many factors that have contributed to the rapid growth of the binary trading market. In addition to the ease of trade that is available with binary, a 2008 ruling by the U.S. Securities opened up the market for those investors not involved with an institution. The American Stock Exchange and Chicago Board Options Exchange quickly followed suit and opened up binary trading to public trading. The ability to control risk and reward and the consistency among all binary trading has also contributed to the rapid popularity of the binary trade market.
Methods of Binary Trading
Binary trading derives out of computer lingo, with binary translating to 1 or 0, or one or the other. When evaluating potential stocks, you are simply predicting whether or not the stock will increase or decrease to a set amount, within a specified period of time. Choosing an inaccurate prediction will cause you to lose your investment and an accurate call results in a payout. While the exact amount of return on an accurate prediction varies, it is usually somewhere between 70 and 85 percent. Losses on an unsuccessful prediction are usually around 95 percent. You never actually own any of the stocks or assets but instead, are securing a prediction on how the asset will perform in the stock market.
Advantages of Binary Trading
Perhaps one of the biggest advantages of binary trading is the ability to control losses and to put a cap on the total loss. Additionally, there are no hidden costs and the risk is well-known ahead of time, avoiding any unexpected financial surprises. This does, however, also mean that the reward is also fixed. The ability to fix the risk at a set cap and know what is at stake is often appealing enough to ignore the disadvantages of a fixed reward. The risk cap is also limited to your initial trade amount, with a minimum of $10.
Binary traders also enjoy the simple binary trading platform. You only have two options available and once you learn the ins and outs of binary trading, it becomes an extremely easy way to navigate the financial market. You can also place your prediction much faster than when trading stocks, sometimes within 60 seconds or less. Finally, traders have more control over the time limit of their trades. They can choose a time frame that is fast, producing risk or reward within minutes or a timeline that extends to over many weeks.
Important Components of Binary Trading
Binary trading allows you to trade all types of assets including currency, stocks and other commodities such as gold. You can use a single platform to trade differing types of assets, including across international trades. While you have control over the time limit you set for binary trading, you are required to stick to that time period. Unlike trading traditional stocks, you cannot trade before that time period is up. Because of this, you will want to have your trade research completed prior to buying into the binary.
The Future of Binary Trading
With such a rapid increase in binary trading, many investors wonder what this means for the future. It is likely that this regulated and low-risk investment option will only see additional growth. However, the exact amount of growth will likely depend on the number of diverse trade opportunities that become available. While binary trading currently appeals to a demographic of safe investors, it might not be risky enough to meet the demands of those investors that prefer a little more volatility. Either way, one thing is for sure, and binary trading is here to stay. You do not need to be a financial expert to participate in trading binary. As more people catch on to the advantages of binary trading, it is likely to only increase in popularity. For even more information about the binary trade boom and what led to its growth, check out this informative binary infographic below.