Karatbars International Collapse: As the EU’s biggest financial regulator, BaFin, issues an ultimatum on the company, Karatbars customers may lose all their outstanding investments with the crypto brand.
Although activities have been on the rise since three (3) years ago before the clampdown in 2019, Karatbars might be at the end of the line as per a restrictive action from Germany. At its peak, the company offered a variety of services via international proxies. Regardless of the location, each branch still retains the parent group’s title.
So, you could likely see an ad culling investment by Karatbit Foundation, or an in-community token like the KaratGoldCoin, each offering at least one of the services listed in the company’s main cache.
BaFin seems to have curtailed all the branches, including the retail end. Currently, most of the advertised products are losing their previous fancy hype.
We explain crucial events leading up to the Karatbars International Collapse case in this article. At the same time, we outline questions that might be bothering the customers’ thoughts.
See who is behind the company’s demise in the following sections.
Karatbars International Collapse: Who is Behind the Company?
Important social media figures and sports personalities often run PR gigs to trend a new cryptocurrency on across several digital platforms. Karatbars International isn’t an exemption in this case, with choice influencers like Patrick Kluivert posing alongside the company’s product. Surprisingly, the “product” is merely conceptual gold, strung up in a series of crypto codes as a means of exchange, which brings us to the question below.
Who Is Behind Karatbars International?
As reported in the Guardian, the digital business belongs to a vacuum cleaner salesman. His name is Harald Seiz. Here is what he offers:
- Gold-backed cryptocurrencies,
- Assets valued at nine hundred million euros in a gold mine,
- KBC (an in-platform cryptocurrency),
The first two offers are quite eye-catchy, especially coming from a former salesman.
Further, Seiz doesn’t seem to have any reliable business history before starting the now-collapsed Karatbars. So, why would people buy/invest their money into such a shallow scheme?
See the answer in the following section.
Why Karatbars Succeeded At First
Until recently, the company relied on the huge PR of popular sportsmen to market its business. But that is not all.
Miami, in Florida, identifies as a crypto state. In that sense, it easily attracts investors and start-ups alike. Karatbars proves to be the latest Miami-hype crypto company to crumble under a financial crime watchdog.
Another interesting aspect of the sales PR is the typical MLM case of plagiarism.
According to reports, Karatbars International proffers unoriginal articles. Such methods help crypto hypes to build traffic. Below are the highlights:
- Karatbars claims to have up to nine hundred billion euros in gold mines
- The company offers illiquid crypto coins (KaratGold) as an in-platform token.
- It fails every bit of regulation necessary for such services.
So, what is the company up to now?
Currently, Seiz seems to have several proxy companies offering the same services as before, despite the Karatbars International Collapse case making the front page a few years ago.
Is it even possible to escape public notice by setting up several other brands as cover up? See the following section.
Karatbars International Collapse: Possible Reboot
Last year, the company began a PR for a new coin, LifeBase.
Just like the previous coin, the current coin is intended to provide financial security for holders, who supposedly earn from an “income system”.
Also, Seiz cuts a socialite image by trying to pitch LifeBase to customers as a relief from workplace burnout. Beneath the surface, the claims are still the same as the hype trailing KaratGold.
There isn’t any reliable, solid backup for LifeBase, despite Seiz claiming that the coin is well-hedged.
Moreover, the current phase seems to retain the same MLM features as the previous ones. Here is how it works.
Seiz promises that holders can earn incomes accruing from their stake in the business, which comes in different forms. For instance, members can earn by recruiting affiliates or by acquiring enough coins to stay in the top compensation tiers.
That is a blueprint for MLM Ponzi. The brand is already popular for it, cue Karatbars International Collapse.
Seiz already failed to fulfill his promise of a thousand (1000) euros per month for holders. Instead of fixing the lapse, he proposes another hype with zero proof of any tangible products on the backend. Here is an excerpt below.
“I have managed to quickly develop a basic income system – a cryptocurrency based on Blockchain and backed with gold, and therefore – solid and inflation-proof.”
Karatbars International Collapse Conclusion
Karatbars International relies entirely on hype to push its gold-backed cryptocurrencies (including LifeBase).
When probed by the German regulatory body, BaFin, in 2019, the company buckled under pressure. Seiz’s next antic is Lifebase, which is the same as KaratGold.
Should You Buy Such Coins?
As long as financial security is concerned, nothing about the proposed crypto coins from the company (or its proxies) is secure. Moreover, Seiz doesn’t have any evidence of the so-called gold mines he proposes to customers. Invest wisely!