The MLM Joint Venture
We have been investigating the “next big” MLM venture NEXUS GLOBAL since its first announcements back in February 2018. It’s a project of the MLM veterans Christian Michel SCHEIBENER and Michael THOMALE (read our telegrams on the subject). They pre-launched their venture just a few days ago and enabled the registration of investors (MLM participants). The officially announced goal of NEXUS GLOBAL is to invest into crypto-mining, ICOs such as Cointed and ESPORTS.COM (both have been failures), sports betting, forex trading and binary options trading.
The NEXUS GLOBAL scheme is constructed as an informal joint venture and/or stealth partnership between the Hongkong-based NEXUS GLOBAL Ltd (we haven’t found any records about the company) and the UK-based VELTYCO. Interestingly, both partners have not disclosed any information on the “next big thing” partnership. That’s definitely not in line with disclosure requirements for an AIM-listed public company. The cornerstone of the NEXUS GLOBAL marketing is VELTYCO’s 8Crypt wallet that is developed in Sofia (Bulgaria) where Veltyco’s developers have their headquarter.
VELTYCO’s 8CRYPT Wallet
In the very center of their MLM activities is their “1. Multi-Wallet” operated by 8Crypt (www.8crypt.com). The wallet is developed by Varkasso Ltd, a company of the Veltyco group which holds 51% of Varkasso’s shares and thus controls it. MLM investors use the 8Crypt wallet to manage their funds and “subordinated distributors”, i.e. the MLM system.
8Crypt obviously is an important product of the Veltyco group and its blockchain strategy. The wallet is also integrated into the ESPORTS.COM venture and will be (or already is) integrated into VELTYCO’s Bet90 sports betting site (www.bet90.com) as said in the company’s press release (read this Morningstar article for example).
Red Flag: 8Crypt is not a blockchain wallet
The 8Crypt wallet is sold to investors as a “blockchain” solution which it definitely isn’t. Blockchain wallets are completely transparent to the public and everybody can check at any time balances and transactions via blockchain scanners such as Etherscan, Blocktrail or Blockchain.info. Because of this transparency and the distributed public ledger investors have a higher level of comfort when investing.
8Crypt is not a “blockchain wallet” in the common understanding of the term. The respective VELTYCO announcements and statements are simply wrong and misleading. 8Crypt is a private off-chain solution, and wallets as well as balances and transactions, are recorded on the company’s servers only (hosted with Microsoft’s Azure platform). No public ledger, no transparency, nothing. It’s a black box from a public blockchain’s point of view and it’s not even a “blockchain architecture” with transaction verification by independent peers.
8Crypt is just another payment platform using cryptographic technology to encrypt everything, a perfect system for money laundering and secret transactions which completely contradicts the blockchain ethics. Investors and authorities should be alerted. We think that such a “secret wallet” should have no place in the blockchain world and in an MLM venture. We will report about 8Crypto in more detail in the near future. To us, a secret wallet such as 8Crypt is a big red flag for an allegedly “blockchain-based” MLM system.
What to expect?
From what we found so far, we expect that the NEXUS GLOBAL MLM will be used to sell Veltyco brands and services along with other services close to the Veltyco founders around Uwe LENHOFF.
We already reached out to the new VELTYCO CEO Melissa BLAU and Christian Michel SCHEIBENER for interviews and will let you know more about the VELTYCO and NEXUS GLOBAL strategy and backgorund information their joint venture soon.
Until then, Investors should be very careful because of the questionable structure of the MLM scheme and the nature of the 8Crypt wallet.