Crypto scams or not? A Woman out of New Zealand has reportedly made $154,000 in 11 days through cryptocurrency marketing networks. The woman currently promotes two different platforms, which has resulted in the Commerce Commission receiving six different complaints that they could be investigating in the near term.
Crypto Marketing Scheme
According to local media reports, a woman based in New Zealand, Shelly Cullen has accumulated $154K in 11 days as the individual works alongside two different crypto marketing networks. It is believed that Cullen has amassed a large network of digital asset enthusiasts who are recruited by Cullen and then incentivized to recruit their network of friends / family. In doing so, these participants are eligible to earn addition cryptocurrency for their time and commitment.
Crypto Marketing Networks
Most recently, the local Commerce Commission has received six different complaints about Cullen and the activities she is engaging in. The two cryptocurrency marketing networks she is recruiting from are Lion’s share and SuperOne. Despite Cullen stating that Lion’s share is her top income generator, the website explains very little as to what they actually do.
On the companies website, they market themselves as a “smart contract platform,” which is extremely vague in the crypto sector. In July of this year, there were reviews posted on the internet calling Lion’s share a “pure scam.” The review outlined that Lion’s share was an illegal ponzi scheme due to the platform promising returns on investment, and being structured around constant promoting and recruiting. The reviewer also stated that there was no evidence on the website that Lion’s share was actually running on the Ethereum blockchain.
What Her Network Was Saying
Despite the Commerce Commission receiving multiple complaints, some individuals had positive things to say about Shelly Cullen and her work in the crypto space. Rātana Church minister Tokomira Aperahama was one of the individuals who had a positive experience with Cullen. According to Tokomira, he had originally spent $300 to open up a digital wallet. He then proceeded to recruit 6 people to an unknown platform that was not mentioned in the report.
After he recruited 6 people, those people went on to recruit another 6 people as well. After the network grew, Tokomira was paid out a commission for each new member on his team. By leveraging a WireX card, he was able to use his crypto assets to pay for medicine and groceries. The Church minister went on to say:
“For eight years we have lived a life of poverty. Now we have enough for food and medicine.”
What Lawyers Are Saying
Ronji Tanielu, a Salvation Army lawyer believes that these marketing tactics are not following a legal framework. Based on the information he has assessed, he believes that these are manipulative crypto scams that are targeting vulnerable individuals that are looking for quick cashflow. Ronji stated that these marketing programs were pyramid schemes that thrived on the poor communities in New Zealand.
It will be interesting to see if the Commerce Commission proceeds in investigating the actions taken by Cullen. With thousands of new cryptocurrency platforms surfacing, many are rolling out marketing opportunities with similar business models. In an environment where most of these digital assets have yet to prove any utility, they strive to tap different avenues for user growth. If the Commerce Commission pursues this investigation, they could end up shaping the way that thousands of projects structure their marketing infrastructure, and could also help in eliminating various crypto scams that are coming to fruition on a daily basis.
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