The MLM (multi-level-marketing) platform Nui Social is creator of a crypto-token called Kalacoin. I didn’t know about it until someone asked a question in the German local board if it’s a good investment. I did some research and I strongly believe that it's an MLM-Ponzi Scam.
Website:
https://kalacoin.io/Here is my evidence why I think it’s a very bad investment and you should consider to spend your money for something else:
Fraudulent involvement of the platform Nui SocialThe CEO of Kalacoin (Darren Olayan) is also CEO of Nui Social, that’s not very clear when you visit the websites. The platform Nui Social is involved in fraudulent business, I’ll just quote some other articles about scam accusations against Nui / Kalacoin:
Kala Token – People-Powered Inherent Value Cryptocurrency ICO?Kala Token Conclusion
The Kala Token website has a number of red flags. There are stock images of cheerful families playing on a beach. The company frequently mentions the fact that you can achieve “financial freedom” (i.e. get rich quick) through their system. It also seems like you can make money by referring other people to the platform. Plus, the website and whitepaper are filled with vague, flowery language. All of these things suggest you’re dealing with a multilevel marketing company.
Like most multilevel marketing companies, most participants in Kala Token’s ecosystem are unlikely going to make money. The vast majority will lose money – despite the company’s claims of helping you earn “financial freedom”.
Source:
https://bitcoinexchangeguide.com/cryptocurrency/ico-scams/#Kala_Token_8211_People-Powered_Inherent_Value_Cryptocurrency_ICO
Nui Social / Kalacoin offers fraudulent cloudmining contracts where it's not clear if they are actually mining: Nui Starts New Kala Mining Crypto MLM After Cease & Desist Securities Fraud In order to start mining Kala it is possible to do it purchasing mining hardware or via cloud mining. The cloud mining service would allow users to invest in Gigahash or Terahash contracts. According to the official press release, by paying a monthly service fee, users can see their Kala grow.
The GIgahash contracts promoted by the company start from $50 with $15 a month fee. Then, it is possible to purchase contracts of $100, with $30 monthly fee, $500 contract with $42 monthly fee, and $1,000 contract with $57 monthly fee.
However, there are even bigger offers for those interested in mining activities. The Terahash contract cost $4,000 with a $115 monthly fee.
Nevertheless, according to Behind MLM, this company is clearly fraudulent. The report mentions that the Gigahash contracts offered by the company pay a direct referral commission and also a team commission that is divided into ten different levels.
Source:
https://bitcoinexchangeguide.com/nui-starts-new-kala-mining-crypto-mlm-after-cease-desist-securities-fraud/
Nui / Kalacoin is regulated by the SEC and didn't register thereAdditionally, Nui / Kalacoin is operated from the United States and that makes the business regulated by the SEC. There is an accusation against Nui and the CEO of Kalacoin that Kala cloudmining products are not registered by the SEC:
Kala Coin Network of Companies Banned by US Texas Securities RegulatorUS Texas State Securities Board (TSSB) has issued an emergency “cease and desist” order against several Kala (KALA) cryptocurrency-related companies that had targeted Texans with misleading investment products like highly profitable mining rig or earning point in blockchain-based marketing platforms, TSSB said on Wednesday. All companies are linked to the owner of Kala cryptocurrency, Darren Olayan.
One of the revealed illegal activities was a Mintage Mining advertisement that claimed an annual reward from 180% to 250% if buying a mining device from the company. Mintage Mining is led by Wyatt McCullough, who is controlled by Olayan, according to the regulator. McCullough has claimed being a highly successful investor that had made “up 5,000% on [his] investment in 7 weeks and his uncle is up 4,000% in 10 weeks”, TSSB order revealed.
Source:
https://cryptovest.com/news/kala-coin-network-of-companies-banned-by-us-texas-securities-regulator/
Marketing buzzwords - famous in Shitcoin-ICO businessKalacoin claims the development of a new consensus algorithm called Proof of Effort – another useless Shitcoin promise
Proof of Effort – Kala makes cryptocurrency accessible to anyone with internet access with our unique way of “mining” through Proof of Effort.
https://kalacoin.io/faq-3/#q4
Huge ecosystem with own overpriced productsKalacoin offers various overpriced products for the believers in Kalacoin to make them rich (that's mentioned all the time that they will get rich)
- Kalacoin Miners to mine at home
- Kalacoin Cloudmining to get a share in Kalacoin mining
- host your Kalacoin Miners to save costs
- earn a big referral bonus if you refer other people and they invest money
Cloudmining with huge referral bonus - up to 10 levels.
The company where you can host Kalacoin Miners is called
mintage mining. The CEO of Kalacoin and Nui Social, Darren Olayan, is also involved in Mintage Mining. Aaaand it’s also possible to purchase Kalacoin miners there.
https://www.mintagemining.com/kala-rig
Another company involved in Kalacoin is Symatri LLC, also owned by the same people (CEO is
Darren Olayan):
https://symatri.com/
http://archive.is/Rf0jbhttps://symatri.com/kala/
I stopped digging there, the overall impression of Kalacoin is very scammy, while the team is real but the rest are huge red flags:
- many scam accusations against Nui / Kalacoin
- related products are all operated by the same owners: Nui Social / Kalacoin / Mintage Mining
- promise of huge returns without proof of a working concept
- proven MLM structure with huge rewards if someone recruits other members and they invest
- informations on the websites are very surficial
For reference: Kalacoin has also an Announcement thread on Bitcointalk:
https://bitcointalk.org/index.php?topic=2846471.0Posted by daianapotter:
https://bitcointalk.org/index.php?action=profile;u=1123850Archive:
http://archive.is/vlFDjBut the account is probably not directly related to KALA / Nui:
Note : I am not the adm or devoloper. Just and independent NUI Social member that want to share the great opportunity (in my opinion) that this coin will be.
