Kibo Partners Review: Unregulated bitcoin lottery
There is no information on the Kibo Partners website advising who owns or runs the business.
The Kibo Partners website domain (“kibopartners.com”) was registered on the 23rd of July 2015, however the domain registration is set to private.
A Russian domain registrar has been used, which corresponds with Alexa estimating that Russia is the largest source of traffic to the Kibo Partners website (58.4%).
Kibo Partners’ lottery site, KiboLotto also defaults to the Russian language.
In all likelihood Kibo Partners is being run by an admin or admins in Russia. Why they don’t disclose who they are on the Kibo Partners website is a mystery.
As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.
The Kibo Partners Product Line
Kibo Partners run what they call “KiboLotto”;
The game platform is based on the revolutionary technology Blockchain, which fully eliminates the possibility of results manipulation.
It is a 100% provable fair game, available anywhere in the world, with the ability to instantly receive the prize of any size without any additional fees and commissions.
KiboLotto is not regulated and is conducted via Bitcoin ‘and other stable cryptocurrencies‘.
Kibo Partners marketing material suggests jackpots are fixed at $1 million dollars, with tickets starting at $1 each.
At the time of publication KiboLotto has not yet launched. Visitors to the KiboLotto website are advised the lottery is “coming soon”.
The Kibo Partners Compensation Plan
The Kibo Partners compensation plan sees affiliates earn commissions based on lottery activity.
Kibo Partners affiliates are also paid to recruit new affiliates, with residual commissions paid out via a unilevel compensation structure.
Kibo Partners are paid a commission each time customers and recruited affiliates spend money on the lottery.
Customer commissions are paid out via a unilevel compensation structure.
A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):
If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.
If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.
Kibo Partners cap payable unilevel levels at seven, with a 10% commission paid out as a percentage of revenue generated on each unilevel level.
Kibo Partners are paid to recruit new Kibo Partners.
How much of a recruitment commission is paid out is determined by how much a newly recruited Kibo Partners affiliate spends on their membership:
- recruit a Standard affiliate ($560) = $110
- recruit a Premium affiliate ($2900) = $320
Residual Recruitment Commissions
Residual recruitment commissions are paid out via the same seven-level deep unilevel team as customers commissions.
In order to qualify for residual recruitment commissions, a Kibo Partners affiliate must recruit at least two affiliates who have recruited two affiliates themselves.
Once this qualification criteria is achieved, the following residual recruitment commissions are paid out:
- recruit a Standard affiliate = $30, paid on unilevel levels 2 to 7
- recruit a Premium affiliate = $50, paid on unilevel levels 2 to 7
A Kibo Partners affiliate can increase this commission rate by recruiting five affiliates who have each recruited at least two affiliates.
This qualification criteria must be met within thirty days of first qualifying for residual recruitment commissions.
If a partner does not meet the second qualification level conditions within 30 days, the transition to the second qualification level will no longer be possible, even if the second level qualification terms are met after the 30-day period.
Once this second qualification criteria is achieved, the residual recruitment commission rate is increased as follows:
- recruit a Standard affiliate = $95, paid on unilevel levels 2 to 7
- recruit a Premium affiliate = $140, paid on unilevel levels 2 to 7
The Royalty Bonus is split into a 4% and 2% pool. Those figures represent a percentage of company-wide revenue generated in Kibo Partners.
The 4% pool is paid out monthly to Kibo Partners who bought in at the Premium affiliate level ($2900).
The 2% pool is paid out monthly to Kibo Partners who have 100 customers (recruited affiliates or retail customers).
Joining Kibo Partners
Affiliate membership with Kibo Partners is tied to the purchase of one of the following two membership options:
- Standard – $560
- Premium – $2900
Kibo Partners claim they will only accept 25,000 affiliates.
Lotteries and other money games operate in some of the tightest regulated markets on the planet.
The payouts are huge, there’s a lot of tax to be collected and the entire process hinges on punters believing they have a shot at winning.
Kibo Partner’s KiboLotto is not regulated. The company repeatedly insists it operates its lotto on “the blockchain”, however this has nothing to do with winner selection.
Sure you might be able to see funds flowing into the company via bitcoin and verify that jackpots are being paid out, but if there’s anything dodgy going on with the drawings, you’re not going to be any wiser.
Not to mention given the anonymous nature of cryptocurrencies, you’ve got no idea where revenue is coming from or who it is ultimately paid out to.
Even if we ignore the lack of regulation and transparency, KiboLotto itself isn’t very attractive.
67% of funds paid in go towards prize generation, which means that for each $1 million payout, the company needs to raise $1.49 million.
$1.49 million paid in just so one person can win $1 million dollars?
Ticket prices quoted in the Kibo Partners compensation plan range from $1 to $50. Thus to raise $1.49 million dollars you’re looking at approximately 29,800 to 1.49 million tickets sold per draw.
Good luck raising that multiple times a week without the confidence of regulated gaming.
Not only is running an unregulated lottery illegal the world over, so too is promoting them. This, other than being cheated, should be your biggest concern as a potential Kibo Partners affiliate.
The anonymous Russian admins don’t care. They simply close up shop and make off with the 10%+ they’ve skimmed off the top.
On the MLM side of things, chain-recruitment is a problem.
Kibo Partners affiliates pay a fee and are then financially compensated for recruiting others who do the same.
Recruit enough and you’ll also be paid residual recruitment commissions. This alone drags Kibo Partners into pyramid scheme territory.
Moreso considering KiboLotto hasn’t even launched yet and recruitment commissions are all that’s currently available,
Kibo Partners themselves see affiliate fees as an investment, so there’s securities issues at play too:
KIBOPARTNERS cannot provide any guarantee as for accomplishing the business plan and achieving the company’s investment objectives.
Investing to KIBOPARTNERS does not include regular dividend payment and is the Investor’s voluntary decision based on his/her understanding of lack of guarantee in deriving income from investment.
The Investor realizes the probability of full or partial loss of investment.
Pay particular attention to that last line. It essentially advises you that you’re probably going to lose money.
Update October 9th 2016 – The original launch of Kibo Partners appears to have collapsed.
The company has rebranded itself “Kibo Platform” and on their website are touting a new launch;
In the fall we plan to start the open distribution of KIBO tokens to raise additional funds for the scaling, development, and implementation of the marketing strategy.
Also, one of the key objectives of the pre-sale is to give everybody who wants it the chance to take part in the KIBO launch and start their own lottery based on a single, decentralized KIBO platform.
By increasing the number of affiliates we plan to achieve an even greater decentralization of the platform and considerably expand the geography of KIBO followers for rapid market release.
We are at the concluding stage of development and the working interface is already available. Code testing and finalization are currently underway.
The original Kibo Partners website has been pulled offline. The Kibo Lotto website is still “coming soon” as at the time of this update.