Kointat Review: Daily returns Ponzi scheme
Kointat fails to provide verifiable company ownership information on its website.
There is a Board of Directors list provided, featuring Hunt Lenny as CEO and Chairman, however none of the Directors exist outside of Kointat’s own marketing material.
In an attempt to appear legitimate, Kointat provides registration details for Kointat Co LTD at the Cyprus Securities and Exchange Commission. Basic UK incorporation details for Kointat Co LTD is also provided.
Cyprus is a scam-friendly jurisdiction with little to no regulation. Despite registering Kointat Co LTD back in 2017, no audited financial reports are available.
UK incorporation is dirt cheap and effectively unregulated. It is a favored jurisdiction for scammers looking to incorporate dodgy companies.
For the purpose of performing MLM due-diligence, Cyprus SEC registration and UK incorporation is meaningless.
Kointat’s website domain (“kointat.com”) was privately registered on November 30th, 2019.
At the time of publication Alexa ranks Nigeria as the only notable source of traffic to Kointat’s website (88%).
This is high enough to suggest that whoever is actually running Kointat is based out of, or at the very least has ties to Nigeria.
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.
Kointat has no retailable products or services, with affiliates only able to market Kointat affiliate membership itself.
Kointat’s Compensation Plan
Kointat affiliates invest funds on the promise of advertised returns.
- Demo – invest $10 to $500 and receive 0.02% in 24 hours
- Budget – invest $50 to $4999 and receive 1.3% a day for 30 days
- Regular – invest $5000 to $10,000,000 and receive 1.5% a day for 30 days
- Popular – invest $10,000 to $10,000,000 and receive 2% a day for 60 days
- VIP – invest $50,000 to $10,000,000 and receive 4% a day for 14 days
- VVIP – invest $100,000 to $10,000,000 and receive 5% a day for 30 days
A minimum $5 can be withdrawn in cryptocurrency. The USD minimum withdrawal amount is $1000.
Note that Kointat charges a minimum 5% withdrawal fee.
Kointat pays referral commissions on invested funds down two levels of recruitment (unilevel):
- 5% on level 1 (personally recruited affiliates)
- 2% on level 2
Kointat affiliate membership is free.
Full participation in the attached income opportunity however requires a minimum $10 investment.
Kointat claims to be “more than a bank”.
It’s website is full of marketing waffle but underneath it all is a simple Ponzi scheme.
As stated in the introduction of this review, Cyprus and the UK are scam-friendly jurisdictions.
Even if one were to take the Cyprus SEC registration as meaning something, by all accounts Kointat has no presence in Cyprus anyway.
As per Alexa’s traffic estimates, Kointat is primarily active in Nigeria. Kointat is not registered to offer securities in Nigeria, so at a minimum is operating illegally in its primary market.
The reason Kointat isn’t registered to offer securities in any meaningful jurisdiction is because that would require it to file audited financial reports.
Kointat represents it generates external revenue from a variety of sources:
Audited financial reports are the only way to confirm external revenue is actually being used pay withdrawals.
As it stands the only verifiable source of revenue entering Kointat is new investment.
Using new investment to pay affiliates a daily return makes Kointat a Ponzi scheme.
As with all MLM Ponzi schemes, once affiliate recruitment runs dry so too will new investment.
This will starve Kointat of ROI revenue, eventually prompting a collapse.
The math behind Ponzi schemes guarantees that when they collapse, the majority of participants lose money.