Pyramid or Chain Scheme?

[andasEv3]

I started running a business. It is similar to a cryptocurrency. Since we now have 200 dollars invested I'm worried that it is a Pyramid or Chain Scheme. The basic structure of the business is as follows, a person invests an amount of money and receives a QuickBuck them investing raises the price of a QuickBuck by 3%, if a person buys a QuickBuck after them, then they can sell it back to the business for 3% profit. I live in North Carolina and the document that I am concerned about is here at https://www.ncleg.net/EnactedLegislation/Statutes/PDF/BySection/Chapter_14/GS_14-291.2.pdf
Would the buyers of QuickBuck be "paying valuable consideration for the opportunity or chance to receive a fee or compensation upon the introduction of other participants" since they stand to have their QuickBuck gain value from getting others to invest?

 

[PayrollHRGuy]

Of course, it is.

 

[Taxing Matters]

As you describe the arrangement it is a classic example of a pyramid scheme. It is an investment in which your return relies upon bringing others into the system to invest. These schemes will always result in those at the bottom of the pyramid losing money since eventually there are no new people to bring in. With most such schemes that happens fairly quickly, with only the original promoter and perhaps a few early "investors" coming out ahead. And that's the reason such schemes are illegal.

 

[NeilTheCop]

When you started the business what did your accountant and attorney say?
And when you applied for your business license what sort of business did you register it as?