As I used to be doing my analysis for our article yesterday on Nui’s arguably pointless CompChain, I got here throughout a company weblog submit that piqued my curiosity.
Titled “ATTN: Vital Clarifications for Nui Members”, right here’s an replace Nui pushed out to associates on March eleventh;
The Digital Vault Is Not Related to Nui
You will have heard speak about one thing known as The Digital Vault. Some are alluding that Nui is a part of the undertaking.
We need to make it very clear that Nui will not be related in any method with the Digital Vault.
It has by no means been one in all our initiatives, and due to this fact now we have no perception, visibility, or affect on it.
Neither Nui company, nor Darren Olayan (CEO), Reid Tanaka (President), Jim Pare or Casey Combden (Keystone Leaders) are affiliated with or endorse the Digital Vault.
If members want to share info personally in regards to the Digital Vault, they need to not use any Nui-affiliated channels.
Any posts on social media teams, pages, and so on. that bear the Nui title or in any method suggest that the Digital Vault is concerned with Nui will likely be thought of a compliance violation and topic to company motion.
I’d beforehand seen Digital Vault referenced in passing, however this sounded prefer it warranted a more in-depth look.
Seeing as Nui and their associates have had since at the least March eleventh to clean the web of Digital Vault advertising, data is scarce.
What info I used to be capable of cross-check by way of a number of sources is as follows;
The Digital Vault is being marketed as “an precise checking account with all options of a checking account.”
Associates join by way of a referral hyperlink, which varieties a separate downline exterior of Nui.
RevvCard is a debit card that Digital Vault associates can ‘load all of their playing cards, accounts, and so forth onto‘.
RevvCard works with fiat and Nui’s Kala altcoin, and Digital Vault is supposedly FDIC insured.
A financial institution search on the FDIC web site nevertheless turns up nothing for both “Digital Vault” or “RevvCard”.
Nonetheless, Nui associates are claiming The Digital Vault financial institution accounts “will likely be 100% insured”.
Different claims made previous to Nui’s censorship crackdown embody (verbatim);
- The Vault is the brand new, decentralized strategy to financial institution
- will probably be the biggest Digital Financial institution and Crypto Change on the planet
- they have already got 1.5 Billion {dollars} below administration
- will probably be accessed by way of an app that’s obtainable on each Android and iOS gadgets
- will probably be quicker than Venmo or Paypal with 3 second transfers from account to account obtainable instantly
- The Vault can have all banking providers like checking, invoice pay, debit card, loans, mortgages, and so on.
- the explanation it’s known as the Vault is as a result of the encryption used is similar that’s utilized by the Pentagon and different excessive safety entities and took over 4 years to program and implement
- the funds within the Vault are assured by in a single day treasuries and by Lloyds of London
And particularly to RevvCard’s options;
1.73″ OLED Contact Display screen
Dynamic EMV Chip
Biometric Fingerprint Reader
Charging Port
MIC
Speaker
Bluetooth
A part of the STAR Community of Banks (HUGE DEAL)
Signing as much as The Digital Vault is free, so commissions are paid on service provider charges and month-to-month account charges.
The Digital Vault affiliate membership charge is $60 after which $30 a month (first month is $30 for Nui associates). I consider this features a RevvCard.
The Digital Vault pays out commissions by way of a 3×10 matrix.
- $10 a month per personally recruited affiliate;
- $1 a month per affiliate recruited into the matrix; and
- as much as 1% of generated transaction charges is break up throughout the matrix.
To qualify for the “revshare” transaction charges, a Digital Vault affiliate should recruit and preserve at the least ten associates.
So aside from Nui associates being the one ones selling The Digital Vault and RevvCard, and Kala being the one formally supported altcoin, the place’s the concrete Nui hyperlink?
The Digital Vault is supposedly being run by “Richard”. Once more, previous to Nui’s censorship crackdown, “Richard” was being overtly recognized as such;
The Vault is owned by Richard Smith and managed by a full govt workforce out of the Las Vegas, Nevada space.
In line with his private Fb profile, Richard Smith is one in all Nui’s co-founders.
Smith has been tied to Nui because it started as Divvee (the unique firm he co-founded), though in Nui he’s left Darren Olayan to be the face of the corporate.
Additional supporting Nui’s direct hyperlinks with The Digital Vault are using Kala (which doesn’t exist exterior of Nui), and $30 off the signup charge for Nui associates.
Verifying Nui affiliate membership would require entry to the Nui affiliate database, which is simple to acquire if you’re the co-founder of each corporations.
What we seem to have with The Digital Vault is one other Mintage Mining setup.
When it launched, Nui went to nice lengths to faux Mintage Mining was a separate firm.
That fell aside although aside after the state of Texas issued Nui with a securities fraud stop and desist, partly due to the mining alternative provided by way of Mintage Mining.
The Texas securities fraud stop and desist finally resulted in Nui paying a $25,000 fantastic.
Banking is clearly a strictly regulated business. One wherein MLM crypto cowboys operating round pretending to be a financial institution in all probability aren’t going to final lengthy in.
Not withstanding Nui’s securities fraud fantastic, and the danger that brings to any monetary channels the corporate integrates itself into by way of Digital Vault.
Secondary regulatory considerations may pertain to The Digital Vault’s MLM alternative, owing to the compensation plan being chain-recruitment primarily based (join, pay a charge and receives a commission to recruit others who do the identical).
For now info pertaining to The Digital Vault and RevvCard is meant to be hush-hush.
Additional particulars (principally a rehash of the data above) is predicted to be launched later this upcoming week.
To be clear there’s nothing inherently unlawful with operating a financial institution or a debit card hooked up to an private altcoin, offered you set all the things up legally.
That features full disclosure to regulators and the general public, which so far as I can see isn’t taking place.
In actual fact by advantage of Nui’s censorship crackdown, they’re clearly going within the reverse route.
Then there’s the general public assertion by Nui that it has nothing to do with The Digital Vault. Notably, Richard Smith’s title is omitted from the discover.
However that doesn’t change the truth that Smith is operating each corporations, which by way of their respective MLM alternatives are built-in on a number of ranges.
So the place’s this all going to finish up?
With Mintage Mining it was fairly clear Nui have been committing securities fraud.
Sadly although regulatory motion in opposition to the corporate was restricted to Texas. If the SEC are investigating at a federal degree we aren’t conscious of it.
Banking regulation isn’t one thing I’m all that clued up on, owing to the very fact it’s uncommon for an MLM firm to stupidly run round advertising itself as a financial institution.
We’d have an replace for you pending what info is made public later this upcoming week.
Though from what I’ve seen, there’s not way more to The Digital Vault and RevvCard than I’ve put collectively above.
Replace twenty seventh April 2019 – The Digital Vault is now going by R Community.
Further particulars have been revealed by Richard Smith throughout an April twenty fifth R Community presentation.