One other day, one other excuse to ram crypto buzzwords down the throats of the MLM neighborhood.
Why Compchain?
Compchain is altering the scope of networking as we all know it.
Constructed on immutable blockchain expertise, Compchain means that you can lock in your community for all times, and faucet into new merchandise and alternatives as they’re added to the platform.
The essential idea behind Nui’s CompChain is your downline is tracked on a blockchain, versus a daily database.
For Nui associates there’s no discernible distinction. CompChain is a unilevel workforce downline, identical as some other MLM firm.
However y’know… blockchain.
Nui’s argument for a blockchain based mostly downline goes like this;
Compchain is the world’s first blockchain created particularly for networking.
It places the facility of your private community again in YOUR arms.
Compchain gives a protected, safe service that shops and protects your community, endlessly.
The implication is that different MLM firms manipulate and steal downlines at whim.
In CompChain that’s supposedly not attainable, therefore “placing the facility again in your arms”.
My drawback with that is CompChain isn’t any totally different to how an MLM firm is meant to work.
If you happen to’re in an MLM firm and your downline is stolen, you’re in a shitty MLM firm run by shitty folks.
CompChain is run by Nui. Their back-end enterprise mannequin sees them hoping to get different MLM firms to make use of CompChain for downline administration, versus present platforms.
What I haven’t seen addressed wherever is what occurs if an MLM firm asks Nui to fork a CompChain downline to govern it?
Additionally if Nui goes below, bye-bye to the MLM firms utilizing CompChain?
Nui operating managing different MLM firm downlines seems like a single level of failure.
With different platforms you purchase the platform and may run it domestically. You gained’t get official updates and help if the offering firm goes below however no less than it’ll run.
A 3rd-party developer can at all times be introduced in to maintain the system operating and handle points if want be.
So far as I do know CompChain isn’t open-source they usually’re operating CompChain on their very own servers.
The standard platform equal is if you happen to ran your MLM firm on a hosted third-party platform, and the internet hosting firm went out of enterprise.
Oh, and there’s additionally this buried in CompChain’s Phrases and Situations;
CompChain reserves the precise, in its sole discretion, to terminate your entry to the Website and the associated providers or any portion thereof at any time, with out discover.
How is that this totally different to some other MLM firm once more?
In an effort to display use-case for CompChain, Nui is launching their very own downline on it.
This seems to be separate to the Nui downline, though Nui associates are clearly being inspired to enroll.
Hooked up to CompChain is the CompCoin (COCO) altcoin Nui have created.
CompCoin just isn’t publicly tradeable and for now exists solely inside Nui and CompChain.
Until then, COCO are primarily inner forex factors.
The thought behind Nui’s CompChain downline is that folks join, get organized right into a unilevel workforce after which merchandise are launched to promote to the downline.
Two issues instantly come to thoughts;
- Why launch CompChain if there aren’t any merchandise but?
- Promoting to associates in CompChain (everyone seems to be an affiliate) isn’t retail gross sales, which any reputable MLM firm wants.
With none services or products there’s nothing to buy or promote, so that you’re in all probability questioning what precisely Nui have launched.
At present all you are able to do in CompChain is get invited by an present affiliate.
Every new CompChain affiliate that indicators up receives $3 in CompCoin.
I couldn’t discover the present inner worth of CompCoin wherever on Nui’s web site or that of CompChain.
When an present CompChain affiliate recruits a brand new affiliate, they’ve handy over $1 price of COCO.
Commissions on recruitment of CompChain associates are paid in COCO as follows:
- 25 cents price of COCO per affiliate recruited down ten unilevel workforce ranges
- $15 price of COCO if three personally recruited associates full CompChain KYC verification
- $30 price of COCO if three associates recruited by three personally recruited associates every full CompChain KYC verification (9 second stage associates)
COCO is generated by Nui on demand at little to no value.
There’s nothing about an inner alternate on the CompChain web site, with out which COCO has no worth in any respect (even when there’s an assigned inner worth).
The issue for Nui is that if there may be or ever is an inner CompChain alternate, they’re operating a pyramid scheme.
An inner alternate assigns an precise worth to COCO, which suggests CompChain associates can liquidate it into actual cash (sometimes USD or one other cryptocurrency).
COCO will be mined (mining is trivial for any new altcoin), however in any other case the one approach to purchase it’s by means of CompChain recruitment.
COCO mining has nothing to do with the CompChain MLM alternative, which because it stands solely pays on recruitment.
There’s additionally securities legislation at play.
If Nui is representing COCO is price USD, which they’re once they speak about paying $1 price of COCO per affiliate recruited or paying associates $15/$30 price of COCO, that’s the major incentive to recruit.
That incentive, that COCO is price USD and by extension will probably be price extra USD sooner or later, is probably a securities providing – even when COCO just isn’t being straight invested in (which it very effectively is likely to be if CompChain runs an inner alternate).
I can’t see CompChain associates buying COCO with no liquidation route, so I’m nearly sure there’s an inner alternate.
Whether or not CompChain associates are capable of entry it or not is one other matter.
Additional to potential securities legislation violations, by giving COCO out totally free and never charging affiliate membership charges, the query of what’s going to fund COCO liquidation is essential.
If it’s by means of an inner alternate, that may see CompChain associates pay different associates seeking to withdraw, based mostly on no matter inner COCO worth Nui has set.
This ties into the illustration (implied or in any other case) that COCO will enhance in worth – even when it’s straight publicly said.
Nui for his or her half needs to be cautious, lest the Texas Securities Board take them to activity once more.
Not likely certain how that is going to play out.
If Nui’s CompChain pyramid recruitment and potential securities fraud flies below the radar, such that they’re capable of finally push some product/service to associates, then you’ve gotten 100% inner consumption as a difficulty.
And if there provisions for retail clients in CompChain (none are talked about that I can see), are real retail clients going to waste their time signing up for blockchain, KYC, buying COCO, blahblahblah?
Associates will leap by means of hoops on the promise of commissions. Retail clients aren’t going to trouble.
And once more that’s provided that there’s provision for retail buyer promoting in CompChain, of which I’ve seen no proof of and even reference to.
TL;DR? CompChain is the blockchain resolution to downline administration that no one requested for or wants.
Nui is selling CompChain through pyramid recruitment, hooked up to an altcoin they’ve created.
Given the same old “to the moon!” MLM crypto nonsense we see, that is probably one other securities fraud violation within the making.