The VLM approach is expected to become synonymous with legitimate business practices, and it will eventually be the norm for multilevel marketing.
Multilevel Marketing, or MLM, is a very controversial business structure. It is a model that facilitates legitimate business ideas and pyramid schemes alike. Viral Looping, or VLM, is designed to address these concerns and offer a more viable alternative.
The Perception of MLM Schemes
In the public eye, multilevel marketing, or MLM companies, are something to avoid altogether. Although the business model is sound, this model’s top-down narrative makes it akin to building pyramid schemes and Ponzi Schemes. Unfortunately, many companies in the MLM industry are of that nature, eroding any confidence in multilevel marketing altogether.
On paper, there’s nothing wrong with the concept of recruiting new sales representatives. Everyone who joins the matrix has their objectives to complete and receives ample incentives to keep recruiting new sales representatives as part of their downline. It creates a cascading effect of recruitment that can make businesses widely successful.
MLM programs’ main draw is how part-timers and self-employed people can still make the most of this model. Sales representatives work as hard or as little as they want to achieve success. It is also a low-risk option, as the initial startup cost for newcomers remains relatively low.
Pyramid Schemes and Trust Issues
Over the years, MLM has become synonymous with pyramid schemes and Ponzi schemes. By promising participants millions of dollars for doing very little work, many are drawn in. All it took was a sizable initial investment, and the money would be rolling in automatically. Those who were recruited by others would often not see any return on investment and lose a lot of money in the process.
Moreover, there is a lot of criticism toward legitimate MLM businesses. Many companies seem to favor hard-sell methods, which don’t always go over well with the target audience.
Even in the cryptocurrency world, there have been several MLM scams. Companies such as OneCoin and MMM Global have embraced the multilevel marketing model as a way to scam cryptocurrency enthusiasts all over the world. Billions of dollars have been lost to these pyramid schemes.
The MLM concept faces an uphill battle where public perception is concerned. The time has come to evolve this model into something more modern and trustworthy.
From MLM to Viral Looping
In this modern era, Viral Looping is the trend capable of replacing the MLM business model. At the core, both models are identical, with the key difference of empowering the users instead of the companies operating this business model. Everyone needs to be treated fairly when promoting a business or project.
With Viral Looping or VLM, there is no one at the top of the structure to manage and oversee things. Instead, everything is managed by the Jigstack DAO, a decentralized autonomous organization run by the community. Removing central figureheads from their power positions leads to more streamlined business models and a better reward structure for everyone.
Under the Jigstack DAO banner, Viral Looping is one of the multiple revenue streams provided to participants. As our DAO is structured as a conglomerate, t can govern a collection of high-quality network solutions that generate revenue. The entire governance aspect is in the hands of Jigstack users who hold the Jstak token.
Thanks to blockchain technology’s transparent nature, the Jigstack DAO will provide a system that cannot be manipulated or tricked.
Changing the Narrative
In this internet-connected world, technology and business models need to adapt or perish. Influencers have become a catalyst for driving business growth thanks to social media.
Viral Looping will do the same for running a business by recruiting sales representatives. The VLM approach will become synonymous with legitimate business practices, and it will eventually become the norm for multilevel marketing.
Thanks to cryptocurrency technology, participants in MLM projects will feel safe and appreciated. As there is no central figurehead to pull the strings and use it for nefarious purposes, Viral Looping will bring legitimacy to any company exploring this business model and looking to expand its reach.
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How Could It Affect Bitcoin?
While the COVID-19 pandemic has slowed down markets worldwide, especially the US stock market, several investors and traders went after alternative assets and options that could provide them a better store of value.
The United States Senate approved by a 50-49 party-line vote a $1.9 trillion coronavirus stimulus check, a plan already announced by Joe Biden at the beginning of January. This COVID-19 package relief includes the third round of stimulus checks that will be passed to president Biden, with a deadline of March 14 to make changes to the package before Biden gets to it.
What Does the COVID-19 Package Relief Plan Provide?
The COVID-19 package relief will include a series of direct payments to help boost the economy, hit by the coronavirus pandemic in 2020:
- Americans making over $75,000 per year will receive direct payments of $1,4000.
- Jobless Americans will receive $300 per week
- Couples who make over $150,000 will receive $2,900 as a household check
- One year increase to Child Tax Credits, which is a tax credit check that could be worth up to $2,000, depending on the income of households.
Why Is This Vital for Crypto?
- Investing in crypto: Americans are one of the most active cryptocurrency advocates in the world. While financial institutions and politicians are still debating and giving uncertain weather for cryptos, a good percentage of the population are trading or investing in them in some way, especially, Bitcoin. If Americans who received the check start using that money to invest in cryptocurrencies, the crypto market would likely see a boost by mid-year.
- Inflation: Stimulus Checks also mean more money issued —meaning, more money printed. The more money is printed, the higher the inflation as the value of fiat decreases. This is also another vital point for Bitcoin and most cryptocurrencies.
- Hedge against inflation: While the COVID-19 pandemic has slowed down markets worldwide, especially the US stock market, several investors and traders went after alternative assets and options that could provide them a better store of value.
When institutional investors and companies, like PayPal, Grayscale, and Tesla, started hoarding Bitcoin, many realized that BTC together with several altcoins, changed from just being a medium of exchange to become a better hedge against value decreasing fiat.
While the weather in the US is uncertain regarding cryptocurrencies, this would likely act as a boost for most digital assets, reaffirming the need for better financial methods as changes are taking place in the world, and most economies can’t rely on the same classical methods of printing money every month for citizens.
Back in February, Janet Yellen made several mixed statements about crypto, specifically, Bitcoin, calling it a “special concern” by outlining how crypto-assets are being used for “shady businesses”. Yellen added that Bitcoin and other cryptos can be used for financing terrorism, but a report by Chainalysis highlighted how Bitcoin only accounts for 0.34% of terrorism-related transactions, keeping the US dollar as the preferred currency chosen by terrorists.
In the last 24 hours, Bitcoin has recovered 0.50% in price, trading in volumes of $49k, with a decent bullish index showing demand is still strong.
I’m a finance journalist and copywriter with a keen interest in the fintech field. I have keen on blockchain technology and cryptocurrency and I believe it can reshape the way we see money and financial freedom.
Ethereum’s London Hard Fork with EIP 1559 Fee Market to Go Live This July
The EIP 1559 is a welcome move for Ethereum users that standardize the transaction fee across the network and reduces volatility. However, mining pools have placed a strong opposition to it.
As per the latest development, July 2021 is the scheduled period when the Ethereum Improvement Protocol (EIP) 1559 will go live. As per Ethereum’s core developers’ call on Friday, March 5th, five other EIPs along with EIP 1559 are likely to join the London hard fork.
The Ethereum fraternity has been eagerly awaiting the launch of EIP 1559 amind issues of the transaction fee. The ongoing EIP 1559 helps to lower the volatility of transaction fees on the Ethereum blockchain. Besides, it also fixes several ongoing issues with Ethereum’s user experience.
Traditionally, a user sends the gas fee to the miner to include the transaction in the block. However, with the EIP 1559 implementation, the gas fee shall go to the network itself in the form of “burn”. The “burn” is also dubbed as basefee with only an optional tip paid to the miners.
The Ethereum algorithm sets the “burn” fee thereby making it easier for users to pay a fair price. Thus, EIP 1559 replaces the supply/demand auction-style system with a standard rate implementation across the entire network. Ethereum creators are confident that the proposal will be “positive ono the long term price” of Ethereum. They say that a lower and predictable gas fee ensures that Ethereum isn’t only for the rich.
This new proposal has received solid support from users and the creators of Ethereum. However, it has garnered strong opposition from the miners and the mining pools who have been on the receiving end.
ETH Miners Place a Solid Opposition
Ethereum miners have enjoyed solid revenues recently on the backdrop of the high DeFi activity on the Ethereum blockchain. In February last month, the total mining revenue clocked a massive $1.3 billion with the average transaction fee striking an all-time high of over $37. As per data by CoinMetrics, 50% of the revenue came from fees alone.
The surge in transaction fees and the ETH price has shot up the network has power to more than 100% in a year’s time. Flexpool, a minority mining pool, has launched a marketing campaign against the EIP. It has also received support from majority pools like sparkPool and Ethermine.
Nearly 60% of the Ethereum hash power is currently against the implementation of the new proposal. Interestingly, F2Pool is the only largest pool in favor of the EIP with 10% hash power.
However, mining pools have few options to stop the EIP 1559 implementation. The bigger danger that currently hovers around is the 51% attack on the Ethereum network. However, the chances of this remain unlikely at this moment considering different financial incentives for not attacking the network.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
Galaxy Digital Leverages Blockstream Facilities for Bitcoin Mining Operations
Despite the partnership announcement, Galaxy Digital Mining did not provide specific details on the number of machines deployed for the first installation.
Diversified financial services and investment management company in the digital asset sector Galaxy Digital (TSX: GLXY) said it is now hosting its newly-launched Bitcoin mining operations at Blockstream facilities. The diversified financial services firm noted that its Bitcoin-mining operations would use Blockstream facilities to initially deploy machines in Canada and the US.
CoinDesk said in a report that the partnership between Galaxy Digital and Bitcoin technology company Blockstream occurred less than two months after Galaxy Digital officially launched its mining operations.
In January, Galaxy Digital announced the launch of its miner financial services. At the time, the firm also added that it would begin its own Bitcoin mining business. Notably, providing financial services to Bitcoin miners has been a work-in-progress for Galaxy Digital since October 2020.
In addition, Galaxy Digital selected the former director of Mining at Fidelity, Amanda Fabiano, to head the new mining operations. Along with Fabiano, Galaxy Digital stated that there is a team of vast professionals working to advance the new unit. According to the press release, the new unit will be called Galaxy Digital Mining. The press release examined the functions of the new mining unit:
“…a new business unit committed to providing bitcoin miners with a comprehensive suite of financial services and products. Galaxy Digital Mining will serve as a one-stop financial services platform for miners-drawing the firm’s expertise in trading and risk management, investing and lending, and corporate advisory under one umbrella, tailored to the needs of the mining sector.”
Galaxy Digital Now Hosting Mining Operations Facilities
Now, Fabiano said that the company hopes to continually expand its mining operations. Despite the partnership announcement, Galaxy Digital Mining did not provide specific details on the number of machines deployed for the first installation. According to Fabiano, the financial services firm selected to use Blockchain’s facilities for “operational excellence.”
Blockstream CEO Adam Back also commented on the new partnership with Galaxy Digital. He said that Galaxy Digital has the opportunity to further growth with the Bitcoin technology company.
Earlier this year, Blockstream announced that it had purchased $25 million worth of Bitcoin mining machines from a Chinese manufacturer of crypto mining equipment MicroBT. Blockstream hopes to expand its mining operations with its new acquisition.
Data by MarketWatch revealed that Galaxy Digital stock had grown nearly 60% since the year began. The company’s stock has also spiked 189.68% in the last three months and almost 30% over the past month. With a market capitalization of $1.69 billion, Galaxy Digital stock has jumped 4.56% in the last five days. At press time, GLXY is closed at $17.41, a 5.74% loss over its previous close of $18.47.
Galaxy Digital has also partnered with CI Global Asset Management to launch a Bitcoin Fund in Canada.
Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.
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