A pyramid scheme involves promising participants payment, services or goods, primarily for enrolling other people into the scheme rather than supplying any real investment or sale of products or services.

 

In order to receive payment, a member will have to recruit others, who in turn will have to recruit some others ... forming a pyramid structure 1-2-4-8-16-32-64-... downward. Such pyramidal structure is bound to doom as by the 20th level, its total members amounted to 1 million people.

 

Also, when there is no new member for a period of time, payment is stopped completely and the scheme collapses. The whole scheme becomes a scam.

 

 

 

 

 

Please do note that SMICap does not operate any investment scheme. It operates a virtual game program known as the tokens program. This program is already more than 4 years in operation.

 

For your information, a participant with the tokens program does not need to recruit anybody in order to gain money from the program. Also, participants of the tokens program are not required to enroll or recruit anybody to join the program.

 

Likewise, the tokens program does not depend on influx of new people for continuity. Any shop which depends on new buyers will collapse when there is no new buyer for 3 consecutive months.

 

But, it is OK to depend on repeat orders from existing customers, as almost all legitimate businesses depend on repeat orders from existing customers, right?

 

Let's look a while at new buyer/member and buying interest.

 

It is illegal to depend on new buyers or new members for survival. That is typical of any pyramid scheme. I agree with you.

 

But, it is OK to depend on buying interests for survival. Two examples of dependancy on buying interest are:

In fact, every business, company, hawker, saleman, shop or stall knows the importance of buying interests from existing and/or new customers.

 

SMICap simply has its own way to generate and maintain high buying interests on its virtual tokens.

 

 

Yes, SMICap does pay commissions and bonuses to those who bring in new account. The commission for bringing a new account is 8% only, and another 8% should there be a matched lot based on a 2-leg compensation structure.

 

The compensation plan is just a reward system to those who bring in new accounts. All legal businesses and companies have some kind of rewards for those who bring in new sales or customers, right?

 

 

Unlike a pyramid scheme, the monetary gains received by each participant is not derived primarily from enrollment or recruitment of others. Members gain much via the right application of financial fundamental in price-splitting on a rising trend only, when your qty of tokens get multiplied and the value of the tokens continues to rise after the price-split.

 

 

 

From the above discussion, you can see that SMICap and the tokens program is not a pyramid scheme because: