A multi-level marketing (MLM) company promoting cryptocurrency called Wealth Builders Network & Educational Services Inc. (WBNES), based out of San Diego, CA, has launched an April 1, 2015 release date, joining a host of other MLM companies that CCN reported on.
MLM companies, while they have both supporters and detractors, can be seen as a sign of any industry’s growth curve. MLMs can help raise awareness about cryptocurrency to the general public, generate new investment in cryptocurrency, or bring new problems to an industry that already has its fair share of them.
MLM companies have been a frequent subject of criticism and lawsuits in many industries. Hence, some cryptocurrency enthusiasts will share these criticisms of MLM companies.
At the same time, MLM, also known as “pyramid selling,” “network marketing” and “referral marketing” has existed in the U.S. since the 1920s. It continues to find a place in many industries. At present, it remains to be seen what role MLM will play in cryptocurrency.
A ‘Bitcoin-Focused MLM’
WBNES described itself in a news tip submitted to CCN as a “Bitcoin-focused multi-marketing company.” An instructional video on the company’s website, www.wbnes.biz, offers currency education in addition to an overview of the benefits it provides its members. It claims to present “tangible assets and e-currency combined into one complete wealth building strategy.”
The instructional video provides information that many financial advisors and cryptocurrency advocates will agree with about wealth building and the benefits of e-currency. Some will also question some of the video’s information.
One page on the advantages of e-currency states: “It is Unregulated & Untaxable from ANY Government Agency.” This statement is not consistent with statements by tax experts CCN has interviewed.
In its news tip to CCN, WBNES notes that its users are paid out monthly in their choice of either bitcoin, FuelCoin, or physical gold or silver coins.
The video makes clear, however, that WBNES promotes the FuelCoin e-currency, which it argues is better than bitcoin. WBNES says it helped distribute 20 million of 100 million FuelCoins in less than 90 days globally. WBNES has become one of the top six wealthiest FuelCoin holders in the world, it further notes.
The strategy is to convert U.S. dollars into bitcoin, then convert bitcoin into FuelCoin. Members then expose the opportunity to their own networks.
The video cites the following disadvantages of bitcoin: price fluctuation, the rising cost of mining, moving from a decentralized state back to a centralized state, and increasing transaction fees. FuelCoin, it claims, has a price stability strategy in addition to other benefits.
“Bitcoin, if it came out in 2009, based on Internet time, we would classify that as a dinosaur e-currency,” the video states. CCN reported on Nov. 9, 2014 that the FuelCoin price was increasing at a rapid pace, but warned investors to be wary.
According to coinmarketcap.com, FuelCoin’s high was on Dec. 8 with a market cap of $7,022,031.976 and a price of 0.00019178 BTC. On March 1, the price was 0.00006188 BTC and the market cap was $1,605,751.36. On March 28, the early afternoon price was 0.00002062 BTC and market cap was $520,915.045.
In its note to CCN, WBNES says: “Many Bitcoin advocates are already telling everyone they know about these digital solutions in an effort to get them involved to grow and strengthen the industry. Now we are providing a platform that incentivizes more users to do so through a monthly residual income stream while also providing a plethora of resources from informational videos and reports to weekly live webinars.”
Also read: FuelCoin Price Steps On The Gas
To become a “premiere member,” you pay $75.99 as a starter fee, and then $60 per month after 30 days. You also pay $29.99 for your wallet setup, backup, and training. “Premiere members” also get discount pricing on FuelCoin purchases. If you bring four people in as members, you end your monthly fee. There are also additional benefits such as business incorporation, tax strategies and access to private income streams.
There is a “low priority package” option that is wallet setup only, and that cost is $50.99. WBNES claims that its initiative has already shown traction with over 500 pre-launch new member sign-ups from countries around the globe.