Did you hear about Initiative Q?
It's a new "Registration Fast" program that spreads like wildfire on Facebook and Twitter, inviting people to sign up for "Q" – a new form of private currency used by the former PayPal People "was created.
To get people to join what has been called Bitcoin next – even though it's not a cryptocurrency – the developers claim they're giving away significant sums of currency.
Conversely, they said that it could be worth $ 2 trillion for early users in the future.
In order to join, you must be referred by an existing member. For this reason, invitations to this system will be displayed on social media
Registration is free, but you need an invitation from an existing user. You must also provide your name and e-mail address.
Sounds too good to be true?
It may be, but more than two million people have already signed up to the initiative, as announced yesterday – and that number is rising.
At present "Q" is worthless and can not be spent. The developers admit that even if everything goes according to plan, it will take years until the currency is worth anything.
The company has created a sense of urgency to get people to sign up. The sooner you get in, the higher the allocation of "Q coins".
There is even a live ticker on the company's homepage that shows the decreasing value of coin allocation the more people sign up.
You should always think carefully about links that are sent to you – especially those who claim to be earning you money for nothing.
But is initiative Q a unique opportunity or simply too good to be true? We'll take a look.
Example of an invitation to the initiative Q
Here is a sample message sent:
"Initiative Q is an attempt by former PayPal employees to create a new payment system instead of credit cards that were developed in the 1950s.
"The system uses its own currency, the Q, and to get people to use it once it's ready, they're freeing Qs to those who sign up for free (the amount drops as more people join – so it is better to join early).
"The registration is free and they only ask for your name and an e-mail address.
"There is nothing to lose, but if this payment system becomes a global leader, your Qs can be worth a lot.
"If you missed getting Bitcoin seven years ago, you do not want to miss this.
"The link will stop working if I no longer have an invitation.
"Let me know after registering, as I must confirm you at my end."
What is Initiative Q?
Q is not really a cryptocurrency.
It is a private currency that developers are hoping will become the standard for payments and the global currency.
Instead of using pounds, dollars or euros, there is "Q".
The Initiative Q says that it will apply a professional monetary policy (like the governments) instead of a pre-established one (like Bitcoin).
According to Initiative Q website hype, it is the payment system of the future.
It said: "The Q-payment network will integrate the best technological improvements that have been made in the payments industry in recent decades to create a flexible, easy-to-use and cost-effective payment network."
It is not clear which "technological improvements" the item refers to.
She adds, "These technologies have been available for years but have not been adopted due to a classic chicken and egg barrier: no buyer wants to join a new network without sellers and no seller offers a payment option that no buyer uses.
"Initiative Q solves the adoption problem by allocating the payment network to a new world currency and distributing that currency free of charge to early adopters."
The currency is the brainchild of Saar Wilf, who made the first payments in 1997 and later founded Fraud Sciences, which was eventually acquired by PayPal.
Q's economic and monetary models were developed with the help of economist Lawrence White, a professor of monetary theory and policy at George Mason University.
It is worth noting that White has produced articles and books that support the notion of "free banking" – where banks do not go beyond the specific rules applicable to most companies – and the repeal of the Federal Reserve System (the UK's central bank system) UNITED STATES).
It may be a bit richer-slower plan. There is a long way to go before Q is a leading payment network, and there are many risks along the way
Saar Wilf – Initiative Q
The Q initiative requires hundreds of millions of members to reach their goals. The company says that this is not achievable if the members have to pay, so that "Qs" would be distributed for free – for the time being.
Initiative Q spends two trillion coins, each of which is worth $ 1. "Q" could be worth an incredible $ 2 trillion in the future.
Wilf told "This is Money": "It may be a bit of a fatter-slow plan, as we explain in our timeline [on the company’s website]It's a long way to go before Q is a leading payment network, and there are many risks along the way.
"But if we reach the goal, the reward for the early adopters should be relatively high."
Commenting on the high future valuation of the currency, he added, "This is a very reasonable valuation for a currency used in a leading global payment network.
"This corresponds to the" currency equation "in the money economy and the current transaction volume of leading payment networks.
"Of course we are not yet a leading network and there are many risks and challenges ahead.
"You can definitely argue about the likelihood of success, but if successful, the valuation model is pretty reliable."
Invitations to participate in Initiative Q are scattered on social media platforms like Facebook
How does it work?
In order to join, you must be referred by an existing member. For this reason, invitations to this system will be displayed on social media.
Once you sign up, you and the person who received the invitation will receive Q tokens.
In addition, you get the chance to earn more from the previously non-existent currency by inviting up to five more people.
According to Initiative Q, there are other ways to earn more "Qs" by performing a series of tasks, such as: For example, installing the Q application, adding information, and unspecified purchases.
In this phase Qs can only be reserved and not used.
Is it a pyramid scheme?
A pyramid plan is a business model in which you need to recruit other members in order to collect your joining fee and to earn profits with the money brought in by a later carpenter.
Here the combination of need for recruiting and promise of future riches is a classic sign of a pyramidal structure, but Initiative Q can not technically be called a pyramid scheme because no money has (yet) changed hands.
"What we do is no different from referral programs from companies like DropBox, AirBNB, Uber and many others," said Wilf.
Of course, people wondered if the company could twitter.
Will Initiative Q sell my personal information?
The initiative is gaining momentum and has so far gained more than two million users.
Some critics say the biggest risk to those involved is that their personal information could be compromised.
However, Initiative Q states that collected data will not be shared or sold. Adding the database will be deleted if "Q" fails.
Should I sign up?
It's the classic: "If your friend jumped off a bridge, you would ask the right question."
Just because your friends and family sign up on social media for "the next big thing" does not mean you should follow blindly.
It is worth taking a step back and questioning the proposal.
This email will be sent as soon as you have successfully logged in to the system
Here the developers themselves have admitted that "Q" remains worthless for many years – even if everything goes according to plan.
The $ 2 trillion goal seems to be out of nothing to boost interest.
You may think you have nothing to lose by signing up for the initiative because it's free and the company has pledged that personal information will not be shared or sold.
The saying "There is no free lunch" is also mentioned here.
On the other hand, the founder Wilf has already gained experience in the payment industry and sold a business to PayPal, which is well reflected.
Whether the initiative will succeed remains to be seen.
However, if you want to invest seriously, you should do so in the long term, says Ben Yearsley, director of Shore Financial Planning.
He added, "The fastest way to lose money is to invest in rich, fast programs that look too good to be true and often.
If it feels wrong, it probably is! For most investors, the best strategy is to stick to mainstream investments. "