Kinetic Union Review: ICO lending Ponzi with unique match & binary
Kinetic Union provide no information on their website about who owns or runs the business.
The Kinetic Union website domain (“kineticunion.io”) was privately registered on December 11th, 2017.
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.
Kinetic Union Products
Kinetic Union has no retailable products or services, with affiliates only able to market Kinetic Union affiliate membership itself.
The Kinetic Union Compensation Plan
Kinetic Union affiliates buy KNTU points from the company’s anonymous owners.
KNTU points are sold for between 70 cents and $1.10 each.
Once acquired, KNTU points are “lent” back to Kinetic Union on the promise of an advertised ROI.
- invest $50 to $1000 and receive a daily ROI for 100 days
- invest $1001 to $10,000 and receive a daily ROI plus 0.05% bonus daily ROI for 75 days
- invest $10,001 to $100,000 and receive a daily ROI plus 0.1% bonus daily ROI for 50 days
For each KNTU point lent to Kinetic Union, the company offers a 25% to 75% match.
- invest $50 to $1000 and receive a 75% match
- invest $1001 to $10,000 and receive a 50% match
- invest $10,001 to $100,000 and receive a 25% match
Kinetic Union pay an equal ROI on matched KNTU points, however the ROI generated from matched KNTU points cannot be withdrawn.
Instead Kinetic Union affiliates are required to reinvest matched point ROI back into new KNTU points.
Residual Commissions (unilevel)
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.
Kinetic Union cap payable unilevel levels at six, with referral commissions paid out as a percentage of funds invested across these six levels:
- level 1 (personally recruited affiliates) – 8%
- level 2 – 5%
- level 3 – 3%
- level 4 – 2%
- level 5 – 1%
- level 6 – 0.5%
Residual Commissions (binary)
A binary compensation structure places an affiliate at the top of a binary team, split into two sides (left and right):
The first level of the binary team houses two positions. The second level of the binary team is generated by splitting these first two positions into another two positions each (4 positions).
Subsequent levels of the binary team are generated as required, with each new level housing twice as many positions as the previous level.
Positions in the binary team are filled via direct and indirect recruitment of affiliates. Note there is no limit to how deep a binary team can grow.
Kinetic Union track investment volume across both sides of the binary team.
When $2500 is matched on both sides of the binary team, a binary “cycle” is triggered and $100 paid out.
A Kinetic Union is able to receive four cycle commissions daily ($400).
Joining Kinetic Union
Kinetic Union affiliate membership is free, however free affiliates are only able to generate referral commissions.
Full participation in the Kinetic Union MLM opportunity requires a minimum $50 investment.
Two features differentiate Kinetic Union from your typical MLM ICO lending Ponzi; binary compensation and the lending match.
Paying residual binary compensation aligns Kinetic Union more closely with a traditional MLM company – at least as far as compensation goes.
Whether this catches on and we see more ICO lending Ponzis adopt a more robust MLM compensation model remains to be seen.
Let’s hope someone doesn’t go overboard and try to justify one by attaching some belly fluff product to ICO lending investment.
Kinetic Union bill their lending match as the introduction of a “401K plan to cryptoworld”.
Kinetic Union claim that matching KNTU points and paying a virtual ROI on them will ‘allow for a higher stabilized appreciation in KNTU token value‘.
What actually happens is the company receives $x amount of money and whereas reinvestment would typically only increase ROI liability by 100% plus whatever was paid over the maturity period (multiplied by a new lending investment term), the match adds an additional 25% to 75% plus the ROI amount in liability.
From the sounds of it though Kinetic Union affiliates aren’t going to be able to ever withdraw matched KNTU point ROIs, so I suppose the idea is that there’ll be gullible idiots willing to buy them through Kinetic Union’s internal exchange.
It’ll have to be a hell of a lot of gullible idiots I imagine, seeing as every Kinetic Union affiliate is going to be generating these phantom matched ROI.
Beyond that Kinetic Union functions much the same as any other MLM ICO lending Ponzi scheme.
We are expecting our price to triple in value once the exchange site goes live.
What that’s based on is unclear, as Kinetic Union don’t identify an external source of ROI revenue.
Instead the usual promises of riches are made, which is based on nothing more than how many gullible idiots sign up and invest.
Lending ICO Ponzis like Kinetic Union play out as follows:
Admins (who are typically anonymous) offload worthless pre-generated points in exchange for real money. In this case it’s KNTU points.
The admins then use some of this money to pay promised ROIs for as long as new affiliates sign up.
Once affiliate recruitment dries up so does the ROI reserve.
When a predetermined threshold is reached, the anonymous Kinetic Union admins pull a runner with what’s left.
Early Kinetic Union investors make a bit of money (mostly via recruitment of new investors). But same as any other Ponzi scheme, the reality of such scams is that the majority of participants eventually lose money.