News leaked yesterday that one of the world’s largest multi-level marketing schemes is shutting down. MMM Global, often associated with Bitcoin, can no longer pay their previously promised 100% bonus per month.
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No More “Republic of Bitcoin”
Multi-level marketing programs tend to take a turn for the worse when companies involve financial tools. In the case of MMM Global, there has always been a large focus on Bitcoin, as the popular digital currency is available on a global scale, and not subject to chargebacks.
After running the MMM Global scheme for quite some time — even though most people are well aware it is a Ponzi scheme — a shocking announcement was made last night. As it turns out, the MLM program will be shutting down very soon, as the “Bitcoin experiment” did not work out the way the operators had hoped.
In their “farewell” message, the MMM Global team mentions how they can no longer afford to pay out 100% profit every single month for every member. A 30% gain should be sustainable, they say, but the previous levels can no longer be attained. Whether or not this has to do with the lack of Bitcoin price volatility in recent months remains to be seen, but there is an equal chance users have stopped depositing significant amounts of money as well.
The “Republic of Bitcoin,” as MMM Global calls their service, will be shutting down very soon. Users of the MMM Global platform used to earn Mavros –– which is the term utilized for the interest gained from investing in this MLM structure — which can then be withdrawn once they have matured. For every US dollar invested in the platform, users would receive an equal amount of Mavro-USD, which could then be converted back to real USD whenever somebody wanted to cash out their balance.
Now that Bitcoin is no longer an option on the platform; the Bitcoin-Mavro balances will be transferred to the MMM structure of the countries where participants come from. For example, all users from the US will see their Mavro balances taken from them, and moved to a global US structure account. If there is no such structure for a particular country, the platform owners will create it out of thin air. Moreover, Bitcoin-Mavro can no longer be used, although they will be repaid to the original owners when the country “develops.”
MMM Global is Not Going Away
Unlike what most people might assume, MMM Global is not shutting down completely. The operators still have something up their sleeve to keep the program trucking along, but it will no longer involve Bitcoin. However, there is no official word on what their new business plan entails exactly.
It remains to be seen how this news will affect the Bitcoin price. Many people attributed the recent Bitcoin price increases to MMM Global growing even bigger, as new investors wanted to use Bitcoin to pay for their membership. Now that Bitcoin is no longer supported, there may be no price change whatsoever, or things might go up or down. It is impossible to tell what will happen at this point, but the fact MMM Global is moving away from digital currency is a positive trend overall.
What are your thoughts regarding the MMM Global announcement? Will this impact the Bitcoin price? Let us know in the comments below!
Images courtesy of MMM Global, Shutterstock