The latest MLM company to jump on the pointless altcoin launch is Karatbars International.
For those unfamiliar with the company,
Karatbars International
combines pyramid recruitment with a token gold offering.
While gold is available for purchase through the company, the focus of the compensation plan is getting people to sign up with affiliate packages.
You wouldn’t know that from visiting the Karatbars International website though, as the company is notoriously secretive about its MLM business opportunity.
In any event, Karatbars International recently released a KaratBank Coin ICO whitepaper.
According to the whitepaper;
KaratBank Coin is a blockchain-based cryptocurrency that is linked to physically deposited gold in the form of the so-called CashGold.
Each 10,000 KaratBank Coins can be exchanged for 0.1g CashGold at any time.
The KaratBank Coin website states that
the idea behind CashGold is to implement small gold bars on a specific paper which partially looks like a bank note.
However, instead of mentioning a specific currency amount, the weight of the implemented gold bar is displayed.
An image accompanying the description depicts CashGold as bits of paper with a square of gold stuck onto them.
Each coin represents an imaginary certain weight of gold whereby a quantity of 10,000 KaratBank Coins can be exchanged for physical gold in the form of 0.1g CashGold.
Other than that, KaratBank Coin is your typical “we’re better than bitcoin” ethereum token.
As far as the ICO goes, KaratBank Coin (KBC) is being sold for 1 cent to 5 cents. There are a total of 12 billion KBC tokens that will be generated.
Karatbars International affiliates are required to purchase 1000 KBC at a time.
Not surprisingly, CashGold isn’t an accepted form of payment. Karatbars International stat they hope the KBC ICO will raise $72 million in bitcoin, ethereum and fiat currency.
More on CashGold later.
In addition to being attached to a pyramid scheme, your first major red-flag with the KaratBank Coin ICO is the list of restricted countries.
United States of America citizens, residents (tax or otherwise) or green card holders as well as residents of Canada, the Peoples Republic of China or the Republic of Singapore are not eligible to participate in the KaratBank ICO.
The United States of America include Puerto Rico, the U.S. Virgin Islands, and any other possessions of the United States.
ICOs are not illegal in the US or Canada. In the US though ICOs are typically considered securities and require registration with the SEC.
Why Karatbars International want nothing to do with US regulators should be obvious.
Meanwhile up in Canada,
Karatbars International was banned for being a pyramid scheme
in 2016.
As for China, they have pretty strict ICO regulation too.
Singapore hasn’t banned ICOs but it is one of the countries Karatbars International operates in through the shell companies KaratPay and Karatbars Singapore.
Singapore regulators shutti
🤖 Quick Answer
What is KaratBars International's business model?KaratBars International operates as a multilevel marketing company combining pyramid recruitment with precious metal sales. The compensation structure primarily incentivizes recruitment through affiliate packages rather than product sales, though gold purchases are available on the platform.
What is KaratBank Coin?
KaratBank Coin is a blockchain-based cryptocurrency introduced through an initial coin offering by KaratBars International. The token is designed to be linked to physically deposited gold reserves, creating a digital asset backed by tangible precious metal holdings called CashGold.
Why did KaratBars International launch a cryptocurrency?
The company launched KaratBank Coin ICO to align with cryptocurrency market trends and blockchain technology adoption. This initiative represents an expansion of their existing business model into digital currency markets, combining cryptocurrency appeal with gold-backed asset positioning.
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