After launching to much fanfare, QTrax is forced into a humiliating retreat, but apparently, the company missed the memo and was ever more brazen in its explanation.

In a nutshell: over-the-counter stock company touts a major Napster-like launch on Sunday with record labels’ support, by Monday all record labels tell Qtrax to go pound sand.

Was this a mistake, a blunder, or fraud?

Here’s what I suspect: the company was in talk with labels for some time, not able to get the deal or terms it sought.  So the geniuses at QTrax said “let’s launch this to much fanfare, generate interest, get 1M-10M signups and then leverage those members to get the deals we want.”

I could be wrong, but people can’t be this dumb, can they?

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