According to MBI's reward system, MBI has the following two basic elements of pyramid selling:
1. Organizational requirements: namely, develop personnel and form a network. The organizer of MLM promises that as long as participants pay money to join and then develop others to join, they will get high "returns" or "rewards". This is commonly known as "development offline". It is also possible to further develop the downline, form a hierarchical relationship between downline and downline, and form a "personnel chain" of pyramid schemes.
2. Salary elements: including two forms. One is to calculate and pay remuneration based on the number of participants in direct development and indirect development, that is, to calculate and pay remuneration based on the number of participants in direct and indirect development, forming a "money chain" of pyramid schemes.
The other is to calculate and pay compensation according to the offline sales performance (sales) directly and indirectly developed by the participants themselves, forming a "money chain" of pyramid schemes.
Under the guise of game financing MFC and MBI Group in Malaysia, its operation mode conforms to the characteristics of Ponzi scheme, such as attracting people, investing money and developing offline, and is characterized as pyramid selling by public security and industrial and commercial departments.
Extended data:
Jiangsu Internet Finance Association combined with the latest features and modes of Internet MLM, and updated the Internet MLM identification guide published on 20 16. Compared with last year, the Internet MLM Identification Guide (version 20 17) mainly adds two parts: digital currency MLM and WeChat MLM.
The guide lists 26 so-called digital currency projects, which are or are suspected to be illegal pyramid schemes under the cloak of digital currency. MBI is one of them.
The pyramid scheme part of the Identification Guide in digital currency pointed out that the understanding of digital currency needs a certain threshold, and most investors don't know digital currency. Many MLM organizations use this to cheat in MLM, and combine the concept of "digital currency" with MLM to form "MLM digital currency".
In order to attract more members to join, "MLM-style digital currency" is often wildly promoted by pyramid schemes, and it is called "Dynamic Award", which is essentially "attractive".
Take the "Wanfubi fraud case" as an example, its "dynamic award" is: "According to the number of member developers, it is divided into three levels and fifteen grades, namely 1-5 stars, 1-5 gold and 1-5 diamonds. Each level corresponds to a different bonus return. If the development goes offline, you can get a commission and commission at different levels.
The minimum one-star member can get 10% commission of the funds paid by the offline member, and the development member can be promoted to one level and get more commission; 5. The percentage of commission paid by diamond members to offline members is as high as 80%. "
Of course, whether it is a "static prize" or a "dynamic prize", the real money invested by investors will only be exchanged for virtual figures that cannot be realized in the account. Even if swindlers sometimes take out cash, they use the money of later investors to fill this loophole, just like Ponzi scheme.
Xinhuanet-Expose the MLM digital currency scam, and close the net and run as soon as the money is refunded.