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PRIZM Cryptocurrency: Paramining, MLM, And... Steamers

16 January 2019 10:59, UTC
Aleksandre B

The PRIZM cryptocurrency is unique. Its main unique feature lies neither in the paramining algorithm invented by the developers nor in the massive advertising campaigns with branded cars on the streets. The uniqueness lies in the very fact of such a long existence of this project.

Yes, the project exists according to the classical principles of MLM, has the features of a Ponzi scheme, with the creators originating from the MMM financial pyramid. It has arisen in 2016, and in 2019, it is still running!

Is there any reason that people who know about Ponzi schemes, scammers and fraudsters luring money from simple-minded people, still convert their savings to PRIZM and rejoice quietly, looking at the growing number of candy wrappers in their crypto wallets? We will answer this question by the end of the article, and now let’s take a closer look at the project.

What is PRIZM technically

The “first fair cryptocurrency” comes from the good old NXT project. The PRIZM coin core works on the NXT-core, which is developed as an open platform for crypto projects.

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The PRIZM creators modified the NXT PoS (Proof-of-Stake) consensus algorithm and added a paramining algorithm to it. PoS cryptocurrencies operate without an energy-consuming mining equipment. New coins are generated by the nodes of the cryptocurrency owners and also serve as a reward for network infrastructure support as well as for transactions’ confirmations.

Paramining means the acquiring of an additional currency amount by any wallet holder. The “bonus” volume depends on the amount of cryptocurrency already stored in the account and the number of levels linked to the PRIZM wallet, which represent new users attracted by the owner and the users further referred. So, that’s an MLM principle.

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It is also worth mentioning a few more details: the transaction fee is 0.5%, but less than $10 as it is a common method of protecting the infrastructure from DDoS attacks. The maximum supply of PRIZM coin pool is 6 bln PZM.

Who created PRIZM

PRIZM crypto is closely connected to CWT (Change the world together), a so-called international social organization, destined to globally improve the level and quality of life, fighting the hegemony of global financial systems and the US dollar. Generally speaking, "for all the good against all the bad."

15-12-2018 16:20:00  |   Analytics
Alexey MURATOV is the main ideologist, founder and the driving force of PRIZM cryptocurrency. He was an ideology leader of MMM-2011, a notoriously known Ponzi scheme from Russia. Muratov is also known for his activities in African countries, as well as in India where he was charged and arrested, but managed to leave the country. Yuri MAYOROV is the team lead of PRIZM developers, also known to be a part of MMM-2011. Another Russian entrepreneur supporting PRIZM is Dmitry VASILYEV, one of the WEX exchange founders.

Leaders claim that PRIZM is to conquer the international financial system, and has all the chances to become the most popular means of payment in the world — better than US dollar, better than Bitcoin.

What is wrong with PRIZM?

PRIZM Coinmarketcap stats are easy to view, however, the trading volume is minimal and didn’t change from the start, since May 2017. There is a short number of exchanges where PRIZM is trading, and it is tough to choose something: BTC-alpha, with two pairs in the listing: PZM / BTC and PZM / USD. However, the Instant Bitex platform was added recently, but there is also a problem here — it is quite suspicious.

26-10-2018 11:58:00  |   Investments
PRIZM trading on the BTC-alpha exchange is symbolic: it could be conducted with the help of a bot, but due to that, the cryptocurrency is present in rankings. PRIZM coin price was conditionally tied to $1, but since the summer of 2018, it headed down to the current levels — approximately $0.1 per PZM, bad news for those who bought it before. It seems that this cryptocurrency is not an effective investment at all.

Let’s get back to the mission of PRIZM and suppose that trading on cryptocurrency exchanges is not so important for the coin which is intended to become a global payment instrument. Assuming that making money on rates changes is not the goal of the participants. Then what? You need to get the coins and find out what you can buy for them. There is a particular platform called PRIZM Store. When you try to enter it, you see the following:

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Not much for the international payment system, huh? Further searches reveal several Telegram bots, private exchangers and non-working websites. While checking these sources, it becomes clear that mostly there is no capital movement within the PRIZM ecosystem. You can estimate it from the trade volume, the number of applications for trading, and the range of products found in stores selling PZM (basically, all the same, "standard" MLM-goods).

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Still, the enthusiasm of PZM investors is enormous; they are eager to attract new users. The emotional stories about a prosperous future, which is definitely inevitable — you just have to join PRIZM! “You will become the top of the ladder, and it's your network that works for you!” Did anyone hear this already somewhere else? Probably so.

So, what is PRIZM after all?

Let's skip the technical component of the project, there is some reason to consider it is implemented quite professionally. But it becomes unimportant when we consider the following facts:

  • PRIZM is not traded on exchanges actively;
  • This cryptocurrency is not used as a means of payment or for exchange;
  • The existing aggregators which accept PZM are not shops — rather, resellers of various MLM products;
  • The main incentive for buying PRIZM is a passive reproduction of funds in the wallet, which is accelerated via the influx of new users;
  • The fate of 10 mln PZM pre-mined is incomprehensible: how were they spread? By whom? What were the criteria?
  • The roadmap of the project has only three milestones: 2016, 2017 and 2037. Strange planning, isn’t it?
  • The development team is hiding, and public people from the team have an ambiguous reputation.

Perhaps that would be enough to understand what PRIZM cryptocurrency is, in order to avoid recommending it to anyone at all.

The answer to the question

But why do followers continue to join PRIZM? Who brings new money into the system? Why is the project still working? The first answer is banal: the financial pyramids always find their clients. People always enjoy the idea of ​​a guaranteed income without any extra effort.

There is another answer as well: the blockchain world is full of suspicious projects; distinguishing scam from non-scam is difficult; the promotion of companies includes some level of hysteria and excitement. Even the most respected projects have their skeletons in the closets. Maybe that’s why the creators of PRIZM declare the income scheme of their users so openly and boldly.