The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

As digital currency continues to become more popular, there are more and more scams in the field of digital currency. Just like the MLM currency we are going to talk about today, it is a classic scam in the currency circle. We know that in the circles of greed and fraud, scammers often use the theory that a major source of human happiness is getting something for nothing to stimulate the sense of smell of investors. Scammers have seized on people's greed to create all kinds of gorgeous scams behind the backs of investors. The various tricks can be said to be difficult to guard against. Many investors still don’t know what this MLM coin means? They don’t know how long it takes for MLM coins to collapse? Let the editor of the currency circle talk about it below.

 What does MLM coin mean?

The biggest feature of MLM coins is to attract people and develop offline. They are divided into first-level fund agents, second-level fund agents, and ten-level fund agents. When you see these words, you can definitely identify that this is a MLM coin. In fact, MLM is easy to identify. It is nothing more than attracting people and developing offline. However, when MLM behavior is wrapped in the cloak of blockchain, many people cannot understand it and are easily attracted by its so-called gorgeous appearance.

MLM coins are created by the project leaders at home or abroad, setting up shell companies or exchanges, and using the name of blockchain technology to create their own coins (i.e. issue platform coins). The currency does not contain any blockchain technology content and has no circulation value.

This kind of project claims 100% profit, and often uses provocative words such as "only rises but not falls", "guaranteed profit without losing money", "make money while lying down", "achieve financial freedom" and other provocative words. Once the purpose of defrauding money is achieved, a harvest will be carried out immediately, using methods such as cliff trading, unplugging the network cable on the exchange and liquidating the position, and finally showing abnormal trading curves such as epic Mario and Eiffel Tower.

Purchase a ghostwriting white paper service on Taobao (currently no longer available) and build a high-end official website. The official website must be in English and available in multiple languages. Product-related information is mostly posted in WeChat communities, and there are multiple communities. Please support them by playing, singing, and boasting to confuse users, in order to achieve the purpose of casting a net to catch fish and vigorously brainwashing them.

As we all know, a major feature of blockchain technology is decentralization. However, the code of MLM coins is not open source, and most of them use centralized accounting methods. The transaction data cannot be queried and is not transparent. As long as you can't find the GitHub logo on its official website, or ask the official website for the code submitted by the project on GitHub, and they can't provide it, then it's basically confirmed that this is either an MLM coin or a junk coin.

 How long does it take for MLM coins to collapse?

Blockchain MLM coins will collapse the day the capital chain breaks. As the underlying technology of Bitcoin, "blockchain" is like a distributed database ledger. As the prices of virtual currencies based on blockchain technology such as "Bitcoin" have soared, ordinary investors are increasingly interested in investing in blockchain and digital currencies.

In fact, there are two concepts of collapse: returning to zero and running away. Sometimes these two concepts have the same meaning, and sometimes they are different.

Let’s study the first concept first: zeroing. The so-called return to zero means that the price of a certain virtual currency is 0. If it is placed in the stock market, it will be delisted or the company will go bankrupt. To put it simply, a certain virtual currency project developed very well in the early stage. It was traded on the exchange, and the price once reached 10 yuan each. But if the project team does not develop well in the later period, or simply gives up and quits, then the currency will have no value. No one wants to buy this virtual currency, and its price returns to zero. At this time, the 10 coins you bought for 100 yuan become worthless. We generally call such a coin a return-to-zero coin.

Let’s look at the second concept: running away. In our project anti-counterfeiting section, there are some scammer projects that use the banner of blockchain but do not actually have blockchain technology. We commonly call them capital disks. These fund disks will also launch some virtual coins, but these virtual coins cannot be listed on the exchange and can only be traded privately. If one day the project party finds that it has accumulated enough funds, it will donate money and run away. At this time, the coins in your hand are also worthless. The software you downloaded is no longer updated, and customer service cannot be contacted. At this time we can also say that this dead project or virtual currency has collapsed.

The crash is almost the same as these two situations. So, how long does it take for the crash to happen? Some virtual currencies collapsed very quickly. It took several months from the time they were launched to the time they collapsed. However, there are also some projects similar to GEC environmental coins that survived for three or four years without collapse. But don’t take any chances. Even if projects like GEC environmental coins live for a long time, they will not change their properties as MLM coins. It will only be a matter of time before they collapse.

The above content is a detailed analysis by the editor of the currency circle on what MLM coins mean and how long it usually takes for MLM coins to collapse. Because of the popularity of blockchain technology, which is the underlying technology of Bitcoin, the price of virtual currencies has also surged, and ordinary investors are increasingly interested in investing in blockchain and digital currencies. Some old routines in the investment field have put on the new vest of blockchain and become popular investment choices. As investors, we must have our own ability to identify and improve our ability to identify risks and hidden dangers. Don’t easily believe in some gods. A good thing about falling into the pie.