Metaverse Legal Compliance Report (IV) Code of Anti-cutting of Chives

“Shuowen Jiezi” has a saying: “Leek, the name of the vegetable. Those who live for a long time are called leeks.” It is said that the leeks that grow on the most fertile soil can be cut 6 times a year.

It is precisely because of the characteristic that leeks are often cut and long, they were originally used to describe the grassroots and retail investors who do not have a long memory in the financial circle. Usually, such people will be fooled by other so-called experts to buy financial products such as stocks and wealth management, and will never escape the end of losing money. And some institutions and big players sell stocks, causing the stock market (or individual stocks) to plummet, and then re-establish low positions. This cyclical behavior is also called “cutting leeks”.

“This is the best era, and it’s also the worst era.” Often when we haven’t truly felt the substantial convenience brought by the transformation of scientific and technological achievements, frauds, pyramid schemes, etc. The behavior of leeks has penetrated our daily life one step ahead.

The purple-hot Metaverse is currently the hardest hit area for cutting leeks. As ordinary people, how can we not only feel the infinite beauty of the metaverse at close range, but also avoid becoming fat leeks? Today, Sister Sa’s team will share with you the “avoidance of slaughter” rules from the perspective of preventing falling into the MLM of the Metaverse.

What is MLM?

According to Article 224-1 of the “Criminal Law”, the crime of organizing or leading pyramid selling activities refers to: organizing or leading business activities such as selling goods and providing services, requiring participants to pay fees or purchase goods or services in the name of and other methods to obtain membership qualifications, and form tiers according to a certain order, directly or indirectly use the number of development personnel as the basis for remuneration or rebates, lure and coerce participants to continue to develop others to participate, defrauding property, and disrupting the economic and social order of pyramid selling activities.

In short, the behavior of organizational leadership MLM mainly has three characteristics:

(1) Entry fee : Each member who joins the MLM organization must pay a certain fee to obtain the membership qualification. Only by paying the money can you become a member of the MLM organization. This is a mandatory condition. The purpose of the MLM organization is to cheat money. Only by absorbing the bottom-level MLM funds can the wallet of the top-level MLM leader be filled, and the entire MLM organization can be maintained. The entry fee depends on the specific situation. Generally, there are no established rules in the MLM industry.

(2)  Pulling people’s heads : MLM organizations will instill a concept in their lectures that MLM is a one-time investment and will never be charged repeatedly. In this way, the MLM organization can only distribute money from each person once, and if they want to distribute more money, they must bring in people. At present, headhunting is not generally forced by MLM organizations. When the MLM organization succeeds in brainwashing, the victims, based on the misunderstanding that they can make millions or tens of millions of overnight riches in just two or three years, turn to their closest people. Propaganda.

(2) Team remuneration : MLM organizations generally use the “five-level and three-level system” as the system to calculate wages. When someone pays, they will divide the money layer by layer according to this system until they are divided up. The commission for each level of the MLM organization is fixed. , the membership fee for downline development is also fixed. If no downline joins, then the income will be zero.

In the final analysis, it is to use new money to support the elderly, tear down the east wall to make up the west wall, and repeatedly stir fry the cold rice that Charles Ponzi had eaten a hundred years ago . There is nothing new under the sun.

The essence of MLM is to use the number of development personnel as the basis for remuneration or rebate. In order to distinguish this crime from the simple “team remuneration” in the sale of goods and not confuse commercial behavior with criminal behavior, our country’s “Opinions on Several Issues Concerning the Application of Law in Handling Criminal Cases of Organizing and Leading MLM Activities” (hereinafter referred to as “Opinions”) ), a simple “team remuneration” type pyramid selling activity for the purpose of selling goods and based on sales performance , shall not be treated as a crime. Formally, the method of “team payment” is adopted, but in essence it is a pyramid selling activity that “uses the number of development personnel as the basis for payment or rebate”, and should be convicted and punished for the crime of organizing and leading pyramid selling activities.

It is worth noting that in the handling of pyramid schemes, it is not the case of entering a pyramid selling organization, illegal pyramid selling behavior will constitute the crime of organizing and leading pyramid selling activities stipulated in the Criminal Law, and only the leaders of specific pyramid selling organizations constitute this crime.

According to Article 2 of the “Opinions”, a person who can be identified as organizing and leading a pyramid selling activity must have one of the following circumstances: (1) A person who initiates, plans and manipulates the pyramid selling activity; Persons responsible for management, coordination, etc.; (3) Personnel responsible for publicity, training, etc. in MLM activities; (4) Persons who have received criminal punishment for organizing or leading MLM activities, or have received administrative punishment for organizing or leading MLM activities within one year Punishment, and directly or indirectly develop personnel who participate in pyramid selling activities with more than 15 people and whose level is above the third level; (5) other personnel who play a key role in the implementation of pyramid selling activities, establishment and expansion of pyramid selling organizations, etc.

For general participants who do not have the above circumstances, they may be subject to administrative penalties depending on the circumstances.

Why do people believe in pyramid schemes?

Gao Xiaosong has a wonderful saying: “There are only two things that people in the world want most: earning something for nothing and immortality .” So why do people believe in pyramid schemes? Or even believe in some rather ridiculous and botched pyramid schemes? The key is that, on the one hand, the MLM cakes are well drawn, and on the other hand, the greed of human nature.

What ridiculous scams are there in the world? “The personal information of express delivery has not been destroyed, and fortune-telling has been deceived by tens of thousands”, “illegal elements pretended to be historical figures such as Qin Shihuang, Liu Bang, Xiang Yu, and defrauded money” and “CP fraud in the game” ranks among the common fraud methods with a very high number of tricks Top three. Like fraud, the first step in MLM is to deceive. The same clumsy scams are never short of deceived people , and even many educated people are also victims.

Victims of MLM can be further subdivided. Most of them are people who can’t escape after being deceived into MLM, but some people are speculators who know the nature of MLM’s “beating drums and spreading flowers”, but still want to make a profit from it. It is true that getting in early and leaving early can indeed gain excess profits from MLM activities, but the risks are also huge .

In addition, according to the author’s research on the experience of many victims of MLM, MLM actors have some other means in addition to grasping the greed of people’s hearts during the deception stage, such as letting MLM offline to persuade their relatives and friends to win over, Based on their trust in their family and friends, many victims are trapped in pyramid schemes and cannot extricate themselves, and they can only promote their relatives and friends again to “pull people’s heads”, which has become a vicious circle.

After entering the MLM organization, “lecturers” and other personnel generally brainwash the members by giving lectures, private chats, etc., and continue to grasp human greed and greed by publicizing some stories of “great gods” getting rich. Herd mentality and fanaticism.

MLM organizations know very well that people are very easy to do irrational things in a state of fanaticism, and it is precisely this that is well used. , using “asset operation” as a gimmick, and pyramid schemes that do not accept mobile phones and do not restrict personal freedom) can the “leeks” be cut one after another.

A psychological phenomenon called the ” law of fifths” refers to the fact that no matter how absurd something is, one in five people will always believe it . Therefore, the MLM routine is not complicated. In fact, it is just the use of unearned temptation, trust in kinship, and group carnival to establish the victim’s trust in the MLM organization.

The Metaverse MLM chaos that exists today

(1) Metaverse training course, earning millions in ten days

Since the concept of the Metaverse is relatively new and the technology is not yet mature, most people have no concept of it. Some Metaverse instructors have started classes on various platforms, and their monthly income can reach more than 1 million. Recently, a screenshot circulated in multiple WeChat groups showed that a training course called “Metaverse Lesson X” added 370 new users a day, nearly 1,200 daily active users, and a daily income of over 90,000 yuan. The cumulative income is nearly 1.6 million yuan.

It is reported that in this training course, the original price of 1,888 yuan is the promotional price of 688 yuan, and if the book is not included, the fee is 600 yuan. The course consists of ten lessons. The course catalogue shows that the course mainly covers the rise of the Metaverse, the characteristics of the Metaverse, the economics of the Metaverse, the panorama of the six major technologies of the Metaverse, and the investment opportunities and risks of the Metaverse. In fact, a large part of these courses are old wine in new bottles. Success is still the pillar and connotation forever , but now he is covered with a layer of metaverse skin.

If it is only through the opening of classes to collect money and spread the success of learning, it can be regarded as one willing to fight and one willing to suffer. But things are often not that simple. According to historical experience, many MLMs have secretly grown in the name of training courses. Often by promoting the fanatical successful learning method, billing and remuneration, developing offline and constantly pulling people to make money, the name of class is actually a pyramid scheme. In the MLM of the Northern School, there are still situations where personal freedom is controlled even now.

Even in non-pyramid marketing courses, it is difficult to prevent all kinds of unidentified gilded lecturers from holding conferences online and offline, vigorously promoting various projects and platforms that are suspected of pyramid selling and under the banner of the Metaverse. As for the people who paid for the lectures, what did they understand? According to an anonymous person who broke into its inside, most of the students are still confused even after listening to all the courses, but as long as they understand that this stuff can be fired.

(2) MLM under the guise of GameFi

With the help of the concept of P2E, various GameFi games have become a new metaverse MLM method. In fact, many GameFi games that seem to be profitable are actually just a killing game .

At present, such GameFi games on the market still adopt the online farming method of killing pigs. For example, in a farming game on a farm, it costs 500 yuan to buy a cabbage. It takes 24 hours to grow cabbage, and you can earn several hundred yuan in one season. .

The game generally bills the old players in return for the old players to bring new players, promises high profits to promote their development and offline, and ensures the operation of the entire game by removing the east wall and making up the west wall.

Once the speed of the old and the new can’t keep up, not only will the upper-level players lose profits, but the entire game will no longer be able to operate. At this time, most GameFi platforms for the purpose of illegally defrauding other people’s money will run away with money, and the “leeks” will eventually Getting nothing is the norm.

How to “cut-proof”?

Let’s talk about the conclusion first: The key to “cutting prevention” lies in independent learning and independent thinking. The so-called learning ability is nothing but the ability to retrieve, obtain, filter, analyze, and integrate various types of information. Independent thinking is actually processing the final integrated information through our own logical reasoning and drawing our own conclusions.

In fact, independent learning and independent thinking do not require a high degree of education and IQ to complete . People with independent learning ability are often just ordinary people who are curious and willing to try. In this era of information explosion, most of the knowledge and effective information can be found from the shallow Internet, and the cost of learning is significantly reduced. What we need to do is to absorb enough information with a critical eye to lay the foundation for learning and thinking.

In the process of learning, it is necessary to avoid the echo chamber effect formed by the information cocoon. We have noticed that among the many MLM cases handled by Sister Sa’s team, the key to the victim’s entry into MLM and believing it is often that the MLM organization uses relatives to gain the victim’s trust and builds an information cocoon that makes people listen to partiality. House.

What the victim has heard and seen for a long time is a lot of false, incomplete and fragmented information compiled by pyramid schemes. Over time, the victim has formed inherent cognition and thinking habits, and even if he can accept external information, he will instinctively resist all knowledge that is different from the content of pyramid schemes. From this point of view, critical thinking is particularly important .

MLM is often the use of some novel concepts and things that people don’t know yet, to deceive and lure people by hyping the “benefits” that can make money. Perhaps a common anti-cutting guide would advise everyone to reduce their greed and work honestly. However, Sister Sa’s team believes that everyone has the desire to pursue profit and compare, and they can suppress it for a while but not for the rest of their lives.

Blocking is worse than sparseness. The ultimate anti-cutting method for Metaverse partners is to learn knowledge independently and make judgments independently. This may not be easy in a world with a lot of information, but as long as we always absorb enough knowledge with an inclusive attitude and critical thinking, we can have a relatively objective and correct understanding of new things, which is more reliable than finding a mentor. much more.

write at the end

“Leek” may not only be a simple joke, but also one of the truths of life. Living in this vast world, we want a lot of things and experience a lot of things, and we roam in the ocean of flowing information all the time. Who can say that he is not a little “leek”?

You should look at the scenery, there may always be leeks in the world, but no one can cut leeks forever . In the face of new technology, it is best to think more about how to use it and less about how to fry it.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/metaverse-legal-compliance-report-iv-code-of-anti-cutting-of-chives/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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