Kinetic Union, found online at KineticUnion.io, is a lending platform that aims to change the way you lend forever. Find out how it works today in our review.
What is Kinetic Union?
Kinetic Union is a cryptocurrency investment scheme accompanied by a poorly-designed website and a barely-legible whitepaper. The company describes itself as “a global platform for players to trade their digital assets.”
The whitepaper vaguely mentions terms like “transparency” and “decentralization”. However, Kinetic Union appears to be under development by a small team of centralized developers, and those developers are providing no transparency about their operation whatsoever.
The ICO for Kinetic Union tokens began on December 20 and is scheduled to end on January 20. Tokens are being sold between $0.70 and $1.10 during the ICO.
How Does Kinetic Union Work?
Kinetic Union appears to function as a Ponzi scheme and a pyramid scheme. The whitepaper mentions a 5 level affiliate referral system where you can make money by referring people to the platform.
There’s also a lending system where you can earn generous monthly interest rates. That lending system works in an unusual way: Kinetic Union will match 401(k) contributions up to 75%. In the United States, 401(k) plans are investment funds where deposits are matched by your employer.
Kinetic Union implements a similar system in its lending scheme:
- $50 to $1000 Loan: Unlimited monthly ROI + 75% 401(k) matching, with capital unlocked after 100 days
- $1001 to $10,000 Loan: Unlimited monthly ROI + 0.05% daily interest + 50% 401(k) matching, with capital unlocked after 75 days
- $10,001 to $100,000: Unlimited monthly ROI + 0.10% daily interest + 25% 401(k) matching, with capital unlocked after 50 days
It’s not totally clear how these loans work. The company claims that if you give them $1000 USD, then they’ll match it up to 75%, giving you an additional $750. You collect daily dividends from both loans. However, once the term of your loan is complete, the additional $750 match is returned to the reserve pool, while you receive your principal plus interest.
Ultimately, like many online scams, Kinetic Union scheduled an ICO before it had any product or services in place. the company isn’t planning to implement its lending scheme until January 2018. A desktop wallet isn’t expected to launch until March 2018, with apps expected in May 2018.
The Kinetic Union KNTU ICO
The Kinetic Union ICO is scheduled for December 20, 2017 to January 20, 2018. A total of 13 million KUTC coins are available during the token sale at a price of $0.70 to $1.10.
In addition to 13 million ICO coins, Kinetic Union is reserving 2 million coins for referral bonuses, 5 million coins for loan matching, 2 million coins for airdrop bonuses, 3 million for developers and advisors, and 1 million to a reserve fund. That brings the total number of coins to 26 million.
Who’s Behind Kinetic Union KNTU?
Kinetic Union refuses to disclose any information about its team. It’s unclear where the company is located, and it’s unclear why the company feels qualified to handle your investments. The whitepaper and website make no mention of any team members or other team information. That’s a huge red flag you’re being scammed.
There’s only one way to contact the Kinetic Union team: [email protected]
The website appeared online in December 2017. However, as mentioned above, the company has not yet developed any products or services aside from its ICO. When someone asks you to send money online for an “investment opportunity”, but refuses to disclose their identity, it’s a sign you’re probably being scammed.
Kinetic Union KNTU ICO Conclusion
Kinetic Union appears to be a Ponzi scheme or a HYIP scam. The company provides no transparency about any aspect of its operations, its team, or its products. In fact, the company launched an ICO without having any business model in place. There’s no evidence that the company will ever pay anyone or will generate returns from anything.
The only thing that makes Kinetic Union different from other crypto-based HYIP scams is that the company has some weird 401(k) matching program for its lending scheme. The company will temporarily match any deposits you make into the lending scheme, but you’ll never be able to withdraw that money.
Ultimately, until Kinetic Union reveals more information about itself online, we’re led to believe this is yet another HYIP scam or Ponzi scheme being marketed to gullible investors.