Research finds cryptocurrency startup Kuailian is a Latin BitConnect

Published on by Cryptoslate | Published on

Cryptocurrency research firm Tulip Research has found an alarming number of inconsistencies in Kuailian, a masternode startup that has raised more than $100 million from investors.

The company mainly targets the Latin American market, offering a monthly ROI of between 6 and 17 percent for members of its ecosystem.

Kuilian, a company providing software that operates masternodes for various cryptocurrencies is most likely an elaborate Ponzi scheme, the latest report from Tulip Research has shown.

The company claims that they sell licenses for a private software that operates masternodes within a "Smart pool" that's based on advanced machine learning.

The very description of the company raised many red flags with Tulip Research, with its analysts diving deep into the company's suspicious business model.

The information listed on the company's website that lists information about the masternodes that are implemented by Buailian's "Smart pool" is mostly fake.

Most of the coins whose masternodes are run by Kuailian have very low liquidity.

While this makes Kuailian's data implausible, a direct statement from a CVCC representative shows that it's almost certainly false-Tulip Research cited a CVCC representative by the name of Dennis as saying that Kuailian doesn't own a single node of CVCC. This scenario repeats itself for almost every other cryptocurrency they list.

The very existence of the company is also questionable, as the report uncovered that Kuailian was registered in Estonia in February this year, despite operating for months before that.

All of this has led Tulip Research to conclude that even if Kuailian isn't an outright Ponzi scheme, it certainly presents an alarming number of inconsistencies in its business practice, which suggests that they might be using masternodes as a smokescreen for fraudulent activities.

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