The Financial institution of Namibia has issued a pyramid scheme warning towards Karatbars Worldwide.
The Financial institution of Namibia (BON) is the nation’s prime monetary regulator.
In a Could third media launch, the BON reveals an investigation into Karatbars Worldwide revealed it was a pyramid scheme.
The result of the (Karatbars) investigation by the BON has revealed…
Members earnings is earned primarily based on the profitable recruitment of latest members to buy new small gold embedded playing cards.
The enterprise apply doesn’t have tangible merchandise of sale to potential members or associates.
The charges paid for the small gold embedded card is used to render professional to the enterprise apply.
Nonetheless, the actual attraction of latest members to Karatbars just isn’t the acquisition of the gold card, however the need to earn cash by the introduction of latest members to the enterprise apply.
(Karatbars’) enterprise apply just isn’t sustainable with out the continual recruitment of latest members who’re eligible to pay a becoming a member of charge.
Pyramid schemes are prohibited in Namibia as per the Banking Establishments Act.
BehindMLM reviewed Karatbars again in 2014 and, primarily based on its enterprise mannequin, additionally concluded it was a pyramid scheme.
In mild of Karatbars Worldwide being a pyramid scheme, the NOB has the corporate and its promoters to stop doing enterprise in Namibia.
On the time of publication Namibia doesn’t seem like a significant supply of site visitors to Karatbars’ web site.
In keeping with Alexa nonetheless, neighboring South Africa at present makes up round 1 / 4 of all Karatbars web site site visitors.
Over the previous few months Karatbars’ gold slither recruitment scheme has taken a again seat to their KBC passive funding alternative.
Hat tip to the reader who alerted us to an article discussing Coin Telegraph taking up Karatbars as a direct advertiser.
The Namibia ban is talked about within the Cointelligence article, which was the primary I’d heard of it.