Kuailian Review: KUAI contract investment fraud
Kuailian provides no information on its website about who owns or runs the company.
In it’s marketing materials Kuailian represents it is based out of East Europe and Southeast Asia.
An incomplete corporate address in Georgia (the country) is provided on Kualian’s website.
Late last year Kuailian held an “international launch event in Barcelona, Spain.
The two main speakers at the event were these guys:
The guy on the left I’ve been able to identify as David Ruiz de Leon.
De Leon is Kuailian’s CEO and, according to his LinkedIn profile, is based out of Madrid, Spain.
This is where Kuailian is being operated from. Any ties to Georgia, East Europe or Southeast Asia appear non-existent (might be some shell companies).
Possibly due to language barriers, I was unable to put together an MLM history on de Leon.
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.
Kuailian has no retailable products or services, with affiliates only able to market Kuailian affiliate membership itself.
Kuailian’s Compensation Plan
Kuailian affiliates invest in $100 KUAI positions, on the promise of daily returns paid for a thousand days.
Specific return rates aren’t provided, however Kuailian’s marketing material provides a 320% ROI example.
Investment in KUAI positions appears to be solicited via ethereum. It is assumed returns are thus also paid out in ethereum.
Kuailian Affiliate Ranks
There are fifteen affiliate ranks within Kauilian’s compensation plan.
Along with their respective qualification criteria, they are as follows:
- Starter – invest $200
- Advisor – invest $500 and generate $1000 in downline investment volume
- Manager – invest $700 and generate $2500 in downline investment volume ($100 on your first unilevel team level)
- Executive – invest $1000 and generate $5000 in downline investment volume ($200 on your first unilevel team level)
- Director – invest $1200 and generate $7500 in downline investment volume ($300 on your first unilevel team level)
- Regional Director – invest $1500 and generate $10,000 in downline investment volume ($500 on your first unilevel team level)
- National Director – invest $2000 and generate $25,000 in downline investment volume ($1200 on your first unilevel team level)
- International Director – invest $4000 and generate $50,000 in downline investment volume ($2500 on your first unilevel team level)
- Vice President – invest $7000 and generate $100,000 in downline investment volume ($5000 on your first unilevel team level)
- Senior Vice President – invest $12,000 and generate $500,000 in downline investment volume ($25,000 on your first unilevel team level)
- President – invest $20,000 and generate $1,000,000 in downline investment volume ($50,000 on your first unilevel team level)
- Shareholder – invest $30,000 and generate $2,500,000 in downline investment volume ($125,000 on your first unilevel team level)
- Main Shareholder – invest $45,000 and generate $5,000,000 in downline investment volume ($250,000 on your first unilevel team level)
- Ambassador – invest $70,000 and generate $10,000,000 in downline investment volume ($500,000 on your first unilevel team level)
- Global Ambassador – invest $100,000 and generate $12,500,000 in downline investment volume ($1,250,000 on your first unilevel team level)
Note that downline investment volume is counted only across the first ten levels of a unilevel team.
Kuailian pays referral commissions 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.
Kuailian caps payable unilevel team levels at ten.
Referral commissions are paid as a percentage of funds invested across these ten levels as follows:
- level 1 (personally recruited affiliates) – 10%
- level 2 – 3%
level 3 – 2%
- levels 4 to 7 – 1%
- level 8 – 0.5%
- levels 9 and 10 – 0.25%
Kuailian pays out a match percentage of daily returns paid to unilevel team affiliates.
The Return Match is capped to the same ten levels as referral commissions:
- level 1 – 8%
- level 2 – 4%
- level 3 – 2%
- levels 4 to 8 – 1%
- levels 9 and 10 – 0.5%
Note that how many levels the Return Match is paid out on is determined by rank:
- Starter – earn the Return Match on one unilevel team level
- Advisor – earn the Return Match on four unilevel team levels
- Manager – earn the Return Match on six unilevel team levels
- Executive – earn the Return Match on seven unilevel team levels
- Director – earn the Return Match on eight unilevel team levels
- Regional Director – earn the Return Match on nine unilevel team levels
- National Director and higher – earn the Return Match on ten unilevel team levels
Kuailian takes 1.5% of claimed company-wide generated profit and splits it across three Ambassador Pools.
- 40% is placed into the Ambassador Pool 1, split evenly between Main Shareholder ranked affiliates
- 35% is placed into the Ambassador Pool 2, split evenly between Ambassador ranked affiliates
- 25% is placed into the Ambassador Pool 3, split evenly between Global Ambassador ranked affiliates
Rank Achievement Bonus
Starting from the International Director rank, Kuailian rewards affiliates with the following Rank Achievement Bonuses:
- International Director – iPad
- Vice President – iPhone
- Senior Vice President – Macbook Pro
- President – Rolex watch
- Shareholder – “Leadership Trip”
Kuailian affiliate membership is $50.95, payable in ethereum.
Kuailian represents it generates external revenue via cryptocurrency trading.
We combine automated cryptocurrency conversion systems with a machine learning tool that analyzes the market and identifies the Master Nodes that have the best return/risk ratio, executing them automatically.
Kuailian investment contracts are dressed up as “master nodes”. No matter what they call them though, Kuailian are pitching a passive returns investment opportunity.
This constitutes a securities offering.
Securities in Spain are regulated by the National Securities Market Commission (CNMV).
A search of CNMV’s register reveals Kuailian is not registered to offer securities in Spain. This means the company is operating illegally in its home country.
Seeing as Kuailian don’t appear to be registered with any financial regulators, the company also operates illegally worldwide.
Furthermore, Kuailian’s business model fails the Ponzi logic test.
A graph in Kuailian’s marketing materials represents returns topping 20,000% a month being generated.
If David Ruiz de Leon had a bot capable of passively generating anywhere near 20,000% a month, what does he need your money for?
As it stands the only verifiable source of revenue entering Kuailian is new investment.
Using new investment to pay existing affiliate investors a daily return makes Kuailian a Ponzi scheme.
As with all MLM Ponzi schemes, once affiliate recruitment drops off so too will new investment.
This will starve Kuailian of ROI revenue, eventually prompting a collapse.
The math behind Ponzi schemes guarantees that when they collapse, the the majority of investors lose money.