I’ve seen a lot of questions as to whether Mirror Trading International (MTI) is a pyramid scheme or multiplication scheme. As their members often attest, they operate the business with full transparency at all times. With this in mind, I would like to address some of those allegations. MTI
is a legitimate, legal entity and doesn’t fall into the ambit of a pyramid scheme or anything of that nature.
We got one of the greatest legal minds in South Africa to write an opinion piece on network marketing in SA and on FSB regulations to explain this further.
For far too long network marketing has been depicted as a pyramid scheme. Everyone thinks that anything that has a referral or recruiting function is a pyramid scheme, and that couldn’t be further from the truth.
The legislation that regulates network marketing is the Consumer Protection Act. It is very clear about what is illegal in terms of network marketing companies under this act, and this is what we are going to explain further in this article.
Mirror Trading International is not a pyramid scheme and is a 100% legal business. They are registered in South Africa because the core business operations happen in South Africa.
Multi-level Marketing, or MLM, is a strategy direct sales companies use to encourage members who are authorised to sell products to recruit new members in order to further sales of the product. MLM is a marketing campaign that promotes the sale of legitimate products or services.
MLM as per SA legislation is not illegal, and it’s not a dirty little secret. You don’t have to feel worried when you recruit people into a legitimate organisation. You are giving them an opportunity to make money in a legitimate way while creating a secondary income stream for yourself at the same time.
If a financial scheme doesn’t fall within the ambit of an MLM campaign, i.e. it doesn’t have a service or product attached, you have a problem regarding legality. Investment in fiat money is regulated by the Collective Investment Scheme Control Act.
MTI is not an investment company. They provide a service where trades are done on your behalf. They provide a service to trade with bitcoin as a base currency. The Financial Services Board deals with fiat currency, and our government doesn’t recognise bitcoin as currency, but rather as an asset. Therefore, the FSB is not a regulating body for any bitcoin-based companies, such as MTI.
The CPA defines various schemes in a specific way, and this may help you further understand why MTI doesn’t fall under any of the following illegal types of schemes.
1. Multiplication scheme – According to the CPA, a multiplication scheme exists when a person is offered a guaranteed amount of return, or an effective annual interest rate that is 20% above the repo rate.
MTI doesn’t fall into this ambit. They do not offer or guarantee results in the future. While our company boasts excellent trading results of an average of 0.5% a day for the past year of trading, we cannot guarantee these results in the future, and it is made clear to members that trading results may vary over time.
2. Pyramid scheme – this is defined as an arrangement or agreement where participants receive compensation derived from respective recruitment of other persons as participants.
MTI does not have this problem. You do not have to recruit new members in order to make money with MTI. Every cent that is made is through profit generated by trade, not recruiting. When you join, you use bitcoin and the company trades on your behalf. Thereafter, you get a portion of the profit. You are not being used to pay someone else. Additionally, there are no admin fees, joining fees or subscriptions.
A pyramid scheme needs recruitment to keep the company alive. If 0 new members join MTI, they will still make money.
3. Chain Letter Scheme – this type of scheme involves various levels of participation. Existing participants recruit new participants, and upon joining, get compensated according to their “level” within the company.
Mirror Trading International – it’s legal and legitimate
From the above definitions it is easy to see why MTI is not a multiplication scheme, pyramid scheme, or chain letter scheme.
They generate profit from trade.
They cannot guarantee returns.
There are no levels within the company.
I hope this article puts to rest any doubts you may have about joining Mirror Trading International. With the world advancing at such a fast rate, a legitimate trading company like Mirror Trading International offers members the opportunity to create a lucrative secondary income stream for themselves, whether they choose to recruit new members or not.