According to a recent report released by CypherTrace in Q4 2019, the crypto industry has incurred a total loss of a whopping $4.5 Billion, which includes about $370.7 million in exchange hacks and thefts. The report also revealed that the industry is facing a yearon-year increase of 533% in cases of fraud and misrepresentation. This means, increase in the cases of frauds are directly proportional to the growth of the industry, and without strict regulations and guidelines from institutions, things are going to be like this. In the meantime, the only solution to these frauds and scams is Education & Alertness about the crypto environment. Even after the introduction of strict regulations, we will see the entry of Ponzi schemes through ‘backdoors’ or ‘loopholes’ in the regulatory environment. It is upon the community to safeguard themselves and report, educate their fellow community mates about any scam they see. For now, like a Good Samaritan, we would like to let our community know about another MLM Ponzi scam, so that you can mark yourself safe from these frauds.
Welcome kineticinvestments.com, Another Unicorn in the Era of Crypto Scams:
Operating from Remich, Luxembourg, the company sells ‘Investment management’ products and promise a weekly ROI of 7% – 15%. Irony is, the address of the company points to a residential property. Just like most of the Ponzi schemes out there, the website has no team but only big ‘feel good’ statements about the team. The website also suffers from ‘typogramania’ disorder as most of the statements in the About Us and Affiliate pages are grammatically incorrect, and some even have typos in them. Interestingly, the domain was registered in 2005 (impressive!) that was later updated in late 2018 (safety sirens turned on!). The DOMAIN REGISTRAR’s name is kept Private on purpose and you know why! The icing on the cake is that the website points to three different countries.
About the numbers (key points)
- The company promise a constant return on investment, ranging from 7%-15% – irrespective of market conditions. This means, someone deposits $10K, their investment will become $19.7k within 9 weeks and $100.6k within 35 weeks. At least, you can become a millionaire (On Paper LOL) – calculations based on 7% weekly ROI. Note: There is no legal declaration on the website and no certificate of affiliation with any institution. Making promises on ROI is illegal in many states.
- The website shows they have +12 Million Wallets – For reference, over 42 million bitcoin wallets had been set up globally by Dec 2019, and only 34% of them or 7.1 million are active (Source : Statista)
- Their LinkedIn Profile says that the company was incorporated in 2010 – Meaning that the company has been selling Bitcoin related investment products, from the time when even Bitcoin didn’t had any accountable market cap and was only used for fun, and was worth pennies. Anybody can start earning by becoming an Affiliate and the earnings percentage is divided into 3 levels, ranging from 5% for level 1 to 1% for level 3. TRUE SIGNS OF AN MLM PONZI. The affiliates only make money when they get more people into the system using their ‘unique link’. Their reward is directly based on the number of people they are referring to and the amount of money (or bitcoin) each referral deposits.
As mentioned earlier above, the only way to safeguard yourself from Scams and Frauds like these is to first educate yourself about the crypto environment. Learn about crypto not only from price and ROIs point of view but also from a fundamental point of view. Know what’s technically possible, read about scams that keep happening on a regular basis, and help your fellow community members when they want to consider these schemes as their next investment.