In a determined bid to prop up its ethereum-based KaratGold Coin shitcoin, Karatbars Worldwide held a “Gold Independence” occasion on July 4th.
For the reason that occasion, KaratGold Coin has dumped from a July third 12.6 cent excessive, all the way down to 4.9 cents.
Karatbars Worldwide started hyping its Gold Independence Day occasion in late 2018.
The occasion centered on a promise by CEO and founder Harald Seiz, that associates would be capable to alternate 100 KBC for 1 gram of gold.
Seiz’s promise was rapidly picked up and relayed amongst Karatbars Worldwide associates.
KaratGold Coin itself started as KaratBank Coin and was introduced in early 2018.
KaratBank Coin is a blockchain-based cryptocurrency that’s linked to bodily deposited gold within the type of the so-called CashGold.
Every 10,000 KaratBank Cash will be exchanged for 0.1g CashGold at any time.
Karatbars’ gold-theme pyramid scheme had been winding down for a while, and the corporate wanted a brand new gimmick to outlive.
Cue the cliched soar into cryptocurrency many of the MLM underbelly has embraced.
Though the unique “KBC” ticker was retained, someplace alongside the road KaratBank Coin grew to become KaratGold Coin.
After the preliminary Ponzi level section (whereby Karatbars Worldwide made a mint promoting KBC to its associates), public buying and selling started in July 2018.
Promotional efforts over the months noticed KBC hover between 0.4 of a cent and a couple of cents.
It was till round April 2019 that Gold Independence hype advertising took off and noticed KBC worth and buying and selling quantity begin to climb.
In a Might twenty fourth video uploaded to Karatbars Worldwide’s official YouTube channel, Harald Seiz reaffirmed his alternate promise;
[0:53] Our promotion for the fourth of July, the day comes very quickly, 100 cash to 1 gram (of) gold… um, you may be excited.
On July 4th Karatbars Worldwide held its occasion at Planet Hollywood in Las Vegas.
It was what you’d anticipate from an MLM firm attempting to shill an altcoin, topped off by a efficiency by Gwen Stefani.
Though Stefani is at present on residency on the Zappos Theatre, for which anybody should buy tickets to, Karatbars disingenuously billed Stefani as a “particular visitor” for his or her occasion.
And that wasn’t the one factor Karatbars was disingenuous about.
No one on the occasion was capable of convert 100 KBC into 1 gram of gold.
How a lot Karatbars spent advertising their Gold Independence occasion is unclear, but it surely paid off.
On June third KBC peaked at 12.6 cents. 24 hour buying and selling quantity briefly broke by means of the $12 million barrier.
After which… effectively, what you’d anticipate an MLM shitcoin to do occurred.
KBC started to dump arduous. Immediately it’s sitting at just below 5 cents.
In an try to placate indignant traders who felt they’d been duped, on July eighth Karatbars Worldwide launched a video that includes Chairman of the Board, Josip Heit.
Heit backtracked on Seiz’s earlier promise, and claimed that associates misunderstood they might solely be capable to “declare” their gold.
Heit additionally trotted out MLM crypto excuses biggest hits, together with “scammers” and “KYC”.
Lengthy story quick, Heit postponed Seiz’s 1 gram of gold promise to October.
Rightfully so, this went down like a ton of bricks with Karatbars associates.
Karatbars disabled feedback on the Heit video and have been deleting indignant feedback from traders on their official Fb web page.
On July eleventh Harald Seiz himself tried to placate Karatbars traders, in a Q&A video uploaded to the corporate’s official YouTube channel.
In response to the query “What is going on with our coin”, Seiz admits KBC is nugatory as a result of there’s “no enterprise” hooked up to it.
Regardless of KBC first being offered to associates again in April 2018, Seiz claims a enterprise gained’t be hooked up to KBC till September 2019.
Seiz attributes KBC dumping after the Las Vegas occasion to provide and demand.
Studying between the strains, that’d be zero demand and oversupply – attributable to Karatbars associates realizing they’ve been had and attempting to salvage their losses.
Seiz goes on to implore Karatbars associates to “purchase the cash and maintain the cash”.
Curiously, in reply to “What’s extra worthwhile now: Change KBC for gold or maintain the KBC?”, Seiz dodges the query and tells associates “no one can see sooner or later, it’s as much as you what you doing”.
On the time of publication 1 gram of gold is value round $45.
As per Seiz’s promise, Karatbars Worldwide associates ought to have been capable of alternate 100 KBC @ 12 cents ($12) for $45 value of gold.
Immediately it’s an excellent higher deal at $4.90 for a gram of gold. Looks like a no brainer to me.
Extra pertinently although, it additionally explains why Karatbars won’t ever honor Seiz’s promise.
It was all advertising bullshit to placate Karatbars affiliate traders, who collectively have misplaced tens of millions investing in KBC.
On the time of publication Alexa pegs the US as the most important supply of visitors to Karatbars Worldwide’s web site (32%).
Neither Karatbars Worldwide, any of their shell firms, Harald Seiz or Josip Heit are registered to supply securities within the US.
Regardless of this, thus far US regulators haven’t taken any motion in opposition to the corporate.
Any individual made a ton of cash promoting KaratGold Coin “revenue packages” and pumping KBC within the lead as much as the July 4th occasion…
…and it wasn’t Karatbars Worldwide associates.
Replace thirtieth March 2020 – Since publication of this text, Karatbars has eliminated all three references movies from its YouTube channel.