Today on April 10th, 2024, BehindMLM turns fourteen.

This is a look back on the past twelve months, published as our annual “State of the Scam” report.

MLM crypto scams

I won’t waste your time trying to analyze the perpetually manipulated state the crypto market is in (lol tether), but I started to notice a decline in MLM crypto schemes around Q4 last year.

It was gradual at first. New launches weren’t sticking and the average lifespan of an MLM crypto scam dropped to one to two months.

There was also a distinct lack of “mega Ponzis”, something we’d seen consistently over years past.
OmegaPro
was probably the last mega-Ponzi I tracked and that
collapsed
towards the end of 2022.

Just so there’s no ambiguity, when I say “mega Ponzi” I’m referring to a scheme that tops monthly website visits of a few million (this is typically the peak of a mega Ponzi).

In fact for most of 2023 to date, there hasn’t been a prominent mega Ponzi to report on.

Outside of some diehard Russians still launching the odd Boris CEO, and what’s left of the scammers who thought AI was going to be the next big grift, MLM crypto scamming, at least for now, is pretty much dead.

This is a bit of a surprise with the current pump manipulation of the wider crypto market but I guess not totally unexpected. Outside of dwindling echo chambers there’s little to no new interest in crypto in general.

Will it stick throughout 2024? That I’m uncertain of. We’re coming up on or around six months now and it’s pretty quiet. Without knowing the specific contributors forecasting the rest of the year is difficult.

Broadly speaking I think one of the primary contributors to MLM crypto schemes imploding is people just don’t have money to lose. Secondary to that could be the ongoing various high-profile crypto busts out of the US.

Anyway BehindMLM will of course keep reviewing the MLM crypto schemes that pop up, but it’s also refreshing to have more time for the rest of the MLM industry as well.

Pending an uptick in MLM crypto fraud, by about mid year the balance should be at around 50% between MLM crypto and non-crypto coverage.

The MLM industry in general

In line with the decline in MLM crypto schemes, there’s also an overall contraction of the MLM industry.

Non-crypto MLM launches have never been prolific but we’re seeing mergers and acquisitions take place.

I don’t typically focus on how MLM companies are doing but I do recall the odd time I’ve pulled up website statistics as part of general research there’s an overall trend towards decline.

Launches are smaller and initial hype fizzles out quicker. Top distributors are getting restless and switching companies to try and reestablish lost earnings.

There’s been two or three instances over the past year where dwindling earnings have been
cited as a defense
for alleged cross-recruitment.
Pruvit’s failure to pay executives
is another example that comes to mind.

Long term the MLM industry might bounce back but over the next

🤖 Quick Answer

What is BehindMLM's annual "State of the Scam" report?
An annual publication that analyzes trends in multi-level marketing schemes and related frauds over the preceding twelve months, providing insights into the evolving landscape of pyramid schemes, crypto scams, and other deceptive business models documented by the BehindMLM investigative platform.

What decline did BehindMLM observe in MLM crypto schemes during 2023?
A gradual reduction in new MLM cryptocurrency scheme launches was documented starting in Q4 2023, characterized by decreased viability of new projects and significantly shortened operational lifespans, typically ranging from one to two months compared to longer historical durations.

What are "mega Ponzis" in MLM terminology?
Large-scale Ponzi schemes that generate substantial monthly website traffic and maintain significant operational scale. OmegaPro represented a notable example,

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