Crypto-MLMs are running out of air in depressed market sentiment with collapsing prices. The capital-intensive crypto mining already produces losses for the “normal” miners. Commission-driven MLM systems such as NEXUS GLOBAL or OMNIA TECH cannot be financed with it at all. Therefore, NEXUS GLOBAL and OMNIA TECH and their distributors are now focusing on FOREX and crypto trading respectively. This is less capital-intensive and superbly easy to manipulate. Especially in the area of penny tokens and shit coins. The last time we saw this was at the obscure NASDACOIN.
NEXUS GLOBAL now uses ICO’s to get cheap access to penny tokens. Currently, the German crypto-MLM is selling the COINANALYST ICO members as a “mega opportunity”. Just a few days ago NEXUS GLOBAL distributors executed a “Pump and Dump” with penny token NASDACOIN.
NEXUS GLOBAL and FOREX Trading
The German crypto-MLM NEXUS GLOBAL around Christian Michel SCHEIBENER and Michael THOMALE can no longer bring their alleged 75,000 members any profits via crypto mining. On the contrary, the scheme is deep in the red. At the current price level of cryptocurrencies, mining is associated with losses across all coins and blockchains. With crypto-MLM systems like NEXUS GLOBAL not only the members want to earn their money, but the entire distribution chain wants to be fed with commissions.
Even in good times with high price levels, as we saw in the 4th quarter of 2017, a crypto-MLM cannot pay off. Crypto mining has never been that profitable that multi-level commission systems can be served with it. This was only possible in the 2017 hype with exploding cryptocurrency prices. The MLM commissions were actually paid with price increases. This does not work in times of stagnating or, as recently, even massively falling prices. Despite their purported USD 50 million investment into a gigantic mining facility in Armenia, OMNIA TECH just announced a halt of its mining activities due to the market situation.
That recognized, crypto-MLM schemes are now betting on crypto-trading (they call it FOREX).
The COINANALYST “Mega-ICO”?
NEXUS GLOBAL has informed its members by email and social media that they would now support the “Mega ICO” of COINANALYST. This would be the coolest ICO ever because it would have been approved by the German financial market supervisory authority BaFin (“non-action letter”). The COY token would be a genuine utility token and therefore not a security, so the story goes. According to ICObench, the COINANALYST ICO has already been running since July 2018 already and is apparently a veritable slow seller. The experts in the crypto scene have so far avoided this German project.
It is not officially known how much of the targeted EUR 20 million the project has actually earned through the sale of its COY tokens. Due to the various postings in the forums and in the social media, we assume that there has hardly been any significant income so far. NEXUS GLOBAL with its 75,000 members is of course very attractive.
The ICO is operated by the Frankfurt-based COIN ANALYST UG (Managing Director Pasquale LAURIA) and is mainly advertised on Telegram. Thanks to the support of NEXUS GLOBAL, the project already has more than 33,000 members in its Telegram channel and is thus advancing into the dimensions of the also “made in Germany” ICO by ENVION.
A Few Numbers On The “Mega” Project
According to its white paper, the German ICO issuer COIN ANALYST UG is a spin-off of the German COGIA GmbH. The latter company already did crowdfunding in 2016 on the German Companisto platform. The company raised € 365,310 in subordinated loans back then. According to Pitchdeck at that time, the money was needed for marketing activities. From this pitch deck we learn that in 2015 and 2016 a turnover of € 600.000 each was generated with costs of around € 600.000 which means that the company ran at loss. For the ICO, no numbers or balance sheets are given but the targeted funds raising target was massively increased: 1.875 billion tokens were to be sold for 0.01 € per token, whereby neither a soft cap nor a hard cap is given. If more tokens are needed, they will be produced later (?).
Moreover, Cogia GmbH’s software is licensed to the COINANALYST for one million euros, payable in monthly installments of € 25,000. Hence, the ICO investors would pay for 50% of Cogia GmbH’s projected revenues sales for 2018/2019.
Evidently, the Coin Analyst UG is a special purpose vehicle to address crypto-investors and raise some urgently needed capital from them. It’s hard to understand why they ask the capital markets for additional € 20 million after raising € 300,000 in 2016 for the very same product.
The ICO consultant KASTELEIN
From our point of view, the participation of Richard KASTELEIN as ICO advisor is also a major drawback of the COINANALYST ICO. In the past, the self-proclaimes Tokenomist KASTELEIN had already attracted attention as an advisor by talking up miserable ICOs and scams in exchange for a good fee and thus seducing investors.
According to ICObench, KASTELEIN has worked on 56 (!) ICO projects and earned a lot of money with them. He is unfortunately in good company with many other notorious ICO advisors. These ICO advisors are partly to blame for the many scams and the bad reputation of the crypto scene. By throwing in coins one could buy any opinion from these ICO advisors. Finally, the financial market supervisory authorities in some countries took action against these ICO advisers. We expect more investor complaints against these advisors in the coming months.
“Pump and dump” is Programme
Back to NEXUS GLOBAL‘s commitment to COINANALYST ICO. The basic idea of COINANALYST to use AI methods (?) to scan the cryptocurrency market to identify scams and opportunities is certainly good. However, the project comes to the market too late. The ICO hype is over. Furthermore, we can expect the delisting (disappearance) of many “Shit Coins” and “Dead Coins” in the coming months and also a corresponding regulation of the crypto exchanges. This will prevent many from accessing the crypto exchanges anyway. The attractiveness of the COINANALYST ICO is therefore currently within very narrow limits and to speak of a “mega opportunity” or a “mega ICO” is simply misleading potential investors.
With the NASDACOIN, the distributors from the NEXUS GLOBAL scheme have already executed a massive pump and dump and, according to our calculations, have ripped off several hundred thousand euros. As described in our respective report, the “Shit Coin” of the Brazilian MLM artist Josef BAPTIST was used to pretend a highly attractive investment to thousands of investors in the NEXUS GLOBAL scheme. The truth is, however, that only the promoters of the NEXUS GLOBAL system have made a profit. They initially bought the NASDACOINS for several weeks at prices below USD 0.1. Then they introduced the investors to the NASDACOIN via blatant Facebook postings and emails and sold them at prices between USD 2 and 4 at a profit of several hundred percent.
The danger for potential COINANALYST investors is that COY prices are up to manipulation. It can be assumed that the NEXUS GLOBAL people have already bought their way into the COYs at a low price and are now deploying the NASDACOIN pattern using their member to drive up prices and thus achieve exorbitant profits at their expense. Zero transparency but one hundred percent manipulation.
Besides, the BaFin does not permit to make use its letters to promote projects. That was also the reason why finally RISE ECO had to discontinue its Security Token Offering (STO). BaFin was not amused that RISE ECO was advertising with the term “BAFIN compliant”. Hence, it may well be that the COINANALYST people may get mail from the BaFin soon.