The cryptocurrency world is still not a scam-free space. Karatbars founders promised to bring “safe gold” with their Karatgold Coins to the blockchain industry but it doesn’t seem that they were really going to do it.
Money isn’t everything but it sure as darn hell makes misery a lot easier to bear. Feed that crap to someone else. Per Wikipedia, a Ponzi scheme is a form of fraud which lures investors and pays profits to earlier investors by using funds obtained from more recent investors.
Starting a successful business is long been important for everyone’s dream. Some legitimate businesses rely on successful entrepreneurs. These are legit businesses, but there are also scams, that instead, you’ll make money, you’ve gotta lose it. However, even though it’s pretty obvious to spot a too good to be true investment, some people are still falling for Ponzi Schemes.
Back in 1920s Charles Ponzi, with all the hype and flowery words, his scheme ran for over a year before it collapsed, costing his “investors” $20 million.
This year, the same concept with different names play in the same game. This time, this MLM company sells gold bullions! It sounds crazy and silly but, yes, it exists and sadly many people fall for it. Karatbars International who was also stated by Forbes as One of 10 Blockchain Companies To Watch In 2019 and also appeared on Cointelegraph.
“To revolutionize our payment system with the power of the blockchain and ensure “safe gold” for people as an investment vehicle.” This is what the Karatbars founders Herald Seiz, Josip Heit, Alex Bodi, and Ovidiu Toma too good to be true promise for their investors.
They’ve created a new digital currency which they called KaratGold Coin (KBC). They are proud that they stand apart from other ICOs because it is backed by gold, as government currencies were in the old days.
Like the other Ponzi scheme who is yielding over 15% on their dividends, Karatbars promised a 40% commission to their affiliates, yes, it is total crap. Not to mention that they also have a “residual passive income.”
As part of their hyping marketing strategy, they rename its native token that was originally “KaratBank Coin” and switch it to “KaratGold Coin”.
They’ve announced last year that on the 4th of July 2019 will become the “Gold Independence Day”, where people can exchange the KBC coins for pure physical gold at the rate of 100 KBC = 1g.
“We work really hard to ensure that starting from the Gold Independence Day on July 4th, 2019, a full-featured gold circulation is put in place worldwide and the phrase “I will pay in KBC” means “I will pay with gold”. We make the financial future of the world and are happy to have you around”, said CEO Harald Seiz
This may be one of the best hype of their marketing style. Since that video and transparency of the team is essential in this kind of scheme, CEO Harald Seiz and chairman of the board Josif Heit even made this video with over 1.6k views and stated that they would be buying and hold 5 tonnes of real gold to serve as a foundation for a new payment system, as well as backing for Karatbar coins.
And to finally fulfill their plan, they’ve paid several reliable media in order to promote Karatbars with banner ads and sponsored content.
Their hype marketing was unsurprisingly extremely effective, however, thanks to few observant eyes in the coin space, they’ve marked their selves red already. Also, a marketing agency announced and revealed the legal defeat of Karat Gold Cooperation PTE Ltd.
“Karatbars not only argued in contradiction to his earlier court statement but also described the tokens as “worthless” — just to keep down the amount in dispute after the lost legal dispute,” said the judge of the Higher Regional Court Dr. von Gumpert.
However, there are still some people who will fall out for another gold-digger atmosphere as Karatbars is also planning to launch KaratNet this October and this is another big problem.
Czarina Delos Reyes has been a creative content writer for two years. Czarina is a content marketer who work out of different blockchain projects, and now a Content Marketer on ICO Tags and Byzbit.