Are NFT MLM Schemes ?

by Rohan

Technology has reached new heights by the passing year. This development has brought so many inventions to help us in our daily lives and has made our work stuff easier. NFT is one such technological development. It was first developed in 2014 and has come so far till now. NFT means non fungible token. Fungible means recreating a certain thing. So the meaning of NFT is something which can not be re-created.

There are several factors which describe your product’s success. But if appreciation and experience is not there then the chances of success reduces. 

Working of NFT

NFT works by blockchain method. So the question is how NEFT works by blockchain method and what is blockchain method.  In the blockchain method collection of financial  records of the public is maintained and kept securely. This technology allows the functioning of bitcoins. This blockchain method is completely secure and it keeps all the records safely. Every data uploaded here is interchangeable. 

NFT is supported by a large number of blockchain and but it is highly dependent on Ethereum blockchain. NFT is getting a lot of money from digital things. A record is being made for every money made and a distinctive token is created. Such a token has a unique UPI ID which consists of meta data and information of anyone’s resources in a JSON file. This metadata stores details about NFT, name , picture and other information. NFT emboss digital resources such as Gif’s, video games etc. NFT also regards tweets on Twitter. 

Do NFTs Exist Only Digitally ?

The answer is yes NFT exists only digitally. NFT has a different impressive way of purchasing and selling products. Here you will receive a digital document. Example if you want to buy a portrait then you will receive it in digital format and not in original format. One good feature of this is that there is a single ownership rule which means only one single person can be held as the owner at that moment. You might wonder how is this possible to detect whether that person is the right owner?. So a unique verification process exists which only enables the transfer of tokens to the right verified owner.

Advantages of using NFT

  • NFTs demand consent/permission. Nobody else can have control of your digital information.
  • There is a proof reading method of identification available so it is a single account holder system.
  • Dealing NFTs in a specific market is easy. Vast choices are available.
  • It helps in making your product digitally famous and selling it digitally and gaining profit from it.

How to buy NFT?

If you want to start your own NFT assembly then their are some materials required :-

  • Digital Wallet 

This digital wallet helps you to collect NFT and crypto currency.

  • Crypto currencies 

There are currencies which your NFT provider accepts such as ether etc so you need to purchase them. If you want to buy them then there are several ways of purchasing them on different party lines. Charges are applied so you need to be careful while buying cryptos. It charges at least a percentage of your transactions.

Are NFT MLM( multi level marketing)?

First we need to understand what is a multi level marketing before knowing whether NFT MLM is identical. It is a direct marketing method in which a product is directly sold to the consumer using an independent sales representative. 

These MLM companies make promises and commitment to the recruiters that this business will provide them money and freedom. This is actually a legal form of business in India. There are so many illegal pyramid schemes also run in the name of MLM but the biggest difference is that there is no real product sold in pyramid schemes. So this is the reason why this scheme has become so controversial. Multi-level marketing companies use unsalaried sails teams who sell products directly to the consumers and recruit additional company sales representatives. 

This method puts the whole responsibility of selling products into the hands of independent distributor networks. These are used by recruiters to generate revenue.

Huge amount of money is required for starting a MLM company. As there are so many network marketing teams who want to start their own MLM company but funding is the main issue as a large amount of funding is required for a startup. 

Let’s take an example 

You want to start a startup company as a leader of network marketing and you have $800,000 available that moment but you need more $6 million. Then what would you do?

There comes the solution-

NFT is the alternative solution in that case . Let me explain how. Those NFT investors who will spend money in your company will own a part of your network marketing company and will be benefited as well from the profit which your company makes.

In MLM there is constant hiring of people and is high in number whereas it’s just the opposite in NFT. That’s why no we can not consider NFT MLM.

So as i said above  NFT is not a multi level marketing we can not consider NFT MLM

In MLM there is a profit given to the recruiters which they receive on selling the items and they do not have to join other people but this is not the same in NFT. There is no commission provided to the NFT recruiters if they have to join other people in network sailing. 

In MLM the recruiters sell products to the people they know already but in NFT there is no connection already present. In short there are no real benefits given to the recruiters.

Conclusion

There are higher risks linked with investments. Whereas there is security provided with investments in larger and more established companies and which provides profit with each investment. There are so many fraud companies that give you false hope and promise to provide you profit but beware of such fraudulent networks. Whichever platform you choose, be aware because there are a lot of people selling products at unreasonable prices to attract the public. So we hope that we have provided enough information about NFT MLM and you are no longer lost about the information you came looking for!

ALSO READ :- CENTRALIZED VS DECENTRALIZED CRYPTOCURRENCY 

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