FTC Takes Down DK Automation — Does Your Crypto Business Stand a Chance?

In the latest news, the Federal Trade Commission (FTC) takes action against DK Automation LLC (AMZDFY) and its owners, David Shawn Arnett and Kevin David Hulse, due to false claims of earnings potential, false reviews, and lack of disclosure for consumers. It’s estimated that nearly $575 million of consumer money was lost due to their business practices. The company will be taken to federal court in the coming weeks.

DK Automation claimed to provide turnkey services that allowed its customers access to Amazon business packages and use a trading bot on crypto exchanges to make money overnight, all while backing their offerings with false testimonials and suppressing all negative reviews via contracts. Essentially, the company was caught deceiving consumers and now they’re paying the price.

Samuel Levine, the Director of the Bureau of Consumer Protection says, “DK Automation ripped off consumers by manipulating reviews and making empty promises of big returns on cryptocurrency investment schemes and bogus business programs.”

DK Automation is a done-for-you type of business. They do it all on your behalf, completely hands-off. But that’s not a sustainable way for any customer to make money, especially with cryptocurrency.

Crypto is taking a hit as of late, and this recent takedown doesn’t help. Is your crypto business still profitable or sustainable?

The FTC Is Serious About Its Requirements

It’s easy to write of fake reviews to tout your own products and services. In fact, I’d wager that most business (especially in the beginning) do this to create a sense of security for potential customers. But the FTC.gov does investigate, and when they do those businesses are going down.

False claims aren’t just a crypto thing, they also—and mainly—affect supplement sellers. Even if you’re familiar with the rules and regulations for a particular industry yet you operate in a different one, that doesn’t give you free rein. That’s where trouble begins.

Don’t make false claims. Don’t force clients to sign contracts that prevent them from providing a fair analysis of your business. Don’t knowingly redact information that sways a customer’s monetary judgment. Instead, here’s what you should do.

Your Crypto Business Can Be Sustainable

Crypto isn’t just money. It’s not only about trading or making big gains or getting in on a new coin that skyrockets and exiting just before it crashes. There’s longevity to crypto, if you have the right business model and the right understanding.

Let’s look at a few crypto business opportunities and models that can function as long-term business.

Crypto Trading Bots Can Line Your Pockets

Most people understand crypto as a monetary thing. Trading, spending, etc. It’s a digital currency that more and more businesses are using to accept as payment.

I see so many new startups promising to triple your initial investment within a month. BUT WAIT!

That’s great news, if it works. But remember the FTC requirements? It’s a terrible idea to put a time limit on anything. You cannot lose 10 pounds in 10 days. You cannot double your money in a week. Is it possible? Yes. Is it likely? Not really.

Bots are an easy, hands-off way of making money. Day traders have been using bots for decades now and they make bank. It can also work for crypto. But an algorithm isn’t everything. While the industry is stable, customers are likely to make money. But an industry as volatile as crypto cannot make that promise.

You need to rethink your marketing strategy. You can talk about long-term gains while staying aware of market volatility. Give customers what they really want: a hands-off way to earn. Will they make $100k overnight? No. But small gains add up. Give them the promise of that security with an automation solution that simply works.

Crypto’s Underdog Feature Is Security

The blockchain. That is the future. We need to find ways to implement it in our daily lives. Secure not only our finances but our documents, transactions, trades, ideas. There is so much potential.

The crypto market overall is crashing, but not Ethereum. That’s because of it’s underlying security tech. Use that to your advantage.

Build a business on the blockchain and market it as futuristic security. Think about how that can help ecommerce retailers. They can avoid scams, chargebacks, and fraud of any kind. It essentially eliminates risk. The best part? No one has to use crypto as a currency to use it. Business can build on top of the tech, securing not only their own business but customer data as well.

Security is the future. Sell security with crypto, not a get-rich-quick scheme.

Coaching Is Big

The biggest downside of crypto is the lack of understanding around it. People just don’t get it. They don’t know how to use it, where their money goes, what they can do with it, or—simply—what crypto is for. That’s where you come in to share your knowledge for a price.

Business coaching has always been a big industry. You don’t even have to be an active coach to succeed. You can record lessons and hide them behind a paywall. You can offer 1-on-1 coaching for a higher fee. You can create a community around crypto.

The best part about coaching is that you can update your information as things change. It’s such a new industry that new features, tech, and coins are popping up daily. This gives customers the incentive to stick with you.

Future-proof Your Crypto Business

Don’t ignore the news, but find a way to use it to your advantage. And don’t make a bogus business program or hide details in small-print disclaimers! These crashes don’t have to affect your high-quality business. You can offer stability, security, and so much more. FTX and DK Automation are good examples of bad crypto companies. Make yours work for you and your customers.

In order to be successful, you’ll need to get a crypto merchant account. That’s where DirectPayNet can help. We’ll set you up with an account that backs your crypto business for right now and the future without worry. Get set up today and start raking in customers for life.

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