Investing in B-Love token for guaranteed monthly income? Know about its direct selling method, lack of exchange listing, and legality in India.

B-Love Token: Cryptocurrency Investment Opportunity or Pyramid Scheme?

B-Love token (Referral Code: Q4HKR1TW4B) a cryptocurrency by B-Love Network, is rapidly gaining popularity in India. The network was founded by Omer Khan, a Pakistani crypto trader based in Dubai. B-Love token, which is not listed on any major exchange, uses a direct selling method to circulate its cryptocurrency. Investors need to find buyers by bringing new people on board. As the app is not on any major exchange, the token prices are believed to be manipulative.

The rise of digitalisation has given rise to such unknown or little-known crypto tokens that promise guaranteed monthly returns to people. The B-Love token has been marketing itself in Delhi neighbourhoods like a pyramid scheme or multi-level marketing. The token assures a guaranteed fixed income, and many people have invested their hard-earned money in it.

B-Love Network has registered more than 5 million downloads of its Android app in just four months on the Google Play Store. The users are spread across various cities in India, and the company's domain, 'Blovenetwork.online,' was registered around the same time. However, the app is not listed on any major exchange, including CoinDCX, Zebpay, WazirX, or Binance. It is just listed on the little-known xchangeon.io, which currently has key features disabled.

According to an expert in crypto, such tokens' prices are manipulative because they are not listed on any major exchange. If you sell B-Love token through an exchange, you have to pay 30% tax (TDS) on profits. Still, if you do it without exchange or in cash, there is no need to pay TDS. Most people do it in cash, which is tax evasion. The income tax rules levy a 30% TDS on any gains on virtual digital assets, including cryptocurrencies, without any offset.

Crypto tokens' direct selling method is legitimised and regulated through inter-alia the Consumer Protection (Direct Selling) Rules, 2021. However, if the concerned app or the entity dealing with crypto operates a scheme where one makes quick and easy money by enrolling more and more subscribers, then it may be considered to be a pyramid or money circulation scheme. Pyramid or Money Circulation Schemes involve enrolling or recruiting maximum participants and masking the subscription or transfer of money with a legitimate-looking investment business to derive illegitimate benefits. In such a scenario, the government can initiate an investigation and action against such set-ups under the Prize Chits and Money Circulation Schemes (Banning) Act, of 1978.