Beware of KIWIsmart – Review

On its website, KIWIsmart makes no mention of the company’s owners or executives.

On August 20, 2021, KIWIsmart’s website domain (“kiwismart.org”) was privately registered.

The KIWIsmart website at the time of publishing mentions a “zoom launch event” happening on January 29.

This is strange given that KIWIsmart marketing videos just began to appear four months ago:

If I hadn’t known any better, KIWIsmart would have already been released and failed. They are now restarting with a new launch.

Rick Fleshman, Alex Ruiz, Syed Jawad Haider, “Tatjana”, Jonas Todorovic, Mike Soh, Malik Atif, Christi Critic, and Gian Luca Gallo are all listed as participants in the KIWIsmart launch webinar.

As the organization’s creator, Rick Fleshman appears to be in charge of KIWIsmart:

California is where Rick Fleshman is based in the US.

Fleshman, one of the founders of Ormeus Global, first came into BehindMLM’s radar in 2017.

The Ponzi scam Ormeus Global had three iterations: Ormeus Global, IQ Chain, and IQ Legacy.

Following John Barksdale’s arrest in Thailand in 2019, the Ponzi scheme fell apart.

Barksdale has continued to refer to the plan as the “Ormeus Ecosystem” since his release.

There is hardly any interest.

Through iAM Marketing, Rick Fleshman and John Barksdale are connected.

The CEO of iAM Marketing is Fleshman:

The founder and Chairman of iAM Marketing are Barksdale:

Barksdale is maintaining a quiet profile if he is associated with KIWIsmart.

30th January 2022 update Javier Canales is an additional former Ormeus Global executive engaged with KIWIsmart.

Canales oversaw the compliance division of Ormeus Global:

The first screenshot above also reveals that KIWIsmart began a soft rollout in August 2021. /end update

Continue reading for a thorough analysis of KIWIsmart’s MLM potential.

Products from KIWIsmart

KIWIsmart promotes access to third-party passive investment plans as well as an automated trading bot.

The trading bot created by KIWIsmart is called Ki100.

Ki100 is

a trade-only API connection connects a streamlined bitcoin trading assistance to your wallet. Through a user-friendly interface, you may manage or change your risk tolerance and withdraw your money whenever you choose.

Ki100’s ownership and technical information are not disclosed.

Customers and associates of KIWIsmart are fed by Ki1000 into “opportunities in liquidity pools and yield farming.”

Passive investing alternatives are referred to by the crypto bro words “liquidity pools” and “yield farming.” Usually, these are operated as Ponzi schemes.

Ki1000 is not given any other information.

Ki100 and Ki1000 may be accessed by paying with “trade credits.” Trading credits may be bought through KIWIsmart partners.

Packages of trading credits costing between $70 and $10,000 are available:

Receive 90 trading credits after spending $70.

Get 280 trading credits after spending $250.

Get 540 trading credits after spending $500.

Get 1100 trade credits after spending $1000.

Receive 5750 trade credits after spending $5000.

Receive 12,000 trading credits after spending $10,000.

Credits may only be acquired when they have been utilized to the tune of 70%.

The following are Ki100’s “estimated” monthly trade credit requirements:

To trade 70 trading credits $9000 worth of trading with $1000 trading credits

10,000 trading credits for a $20,000 deal; 5,000 trading credits 10,000 trading credits for $100,000; $200,000.

It is unknown how many trade credits are needed to access Ki1000.

The Compensation Plan of KIWIsmart

Selling trading credits to retail clients and affiliates they have recruited is how KIWIsmart affiliates make money.

Affiliate Ranks for KIWIsmart

The compensation structure for KIWIsmart has twenty-one affiliate ranks.

They are as follows, along with their respective qualifying standards:

K1 – recommend, find, and keep one retail client or affiliate

K2: recommend, find, and keep two retail clients and/or affiliates.

K3: recommend, find, and keep three retail clients and/or affiliates.

K4 – recommend, find, and keep four retail clients and/or affiliates

K5 – recommend, find, and keep five retail clients and/or affiliates

K6: recommend, find, and keep six retail clients and/or affiliates

K7: recommend, find, and keep seven retail clients and/or affiliates

K8 – recommend, find, and keep eight retail clients and/or affiliates

K9 – recommend, find, and keep nine retail clients and/or affiliates

K10: recommend, find, and keep ten retail clients and/or affiliates.

K11: recommend, hire, and keep 11 retail clients and/or hired affiliates

K12: recommend, hire, and keep twelve retail clients or hired affiliates

K13: recommend, find, and keep thirteen retail clients and/or affiliates.

K14 – recommend, find, and keep fourteen retail clients and/or affiliates

K15 – recommend, find, and keep fifteen retail clients and/or affiliates

K16: recommend, find, and keep sixteen retail clients and/or affiliates.

K17 – recommend, find, and keep seventeen retail clients and/or affiliates

K18 – recommend, find, and keep 18 retail clients and/or recruited affiliates

K19 – recommend, seek out, and keep nineteen retail clients and/or affiliates

K20: recommend, hire, and keep twenty retail clients and/or hired affiliates

K21: recommend, find, and keep twenty-one retail clients and/or affiliates.

Referred retail customers and affiliates who have been hired must be “active” to qualify for a rating.

Anyone who has purchased 50 trading credits or more in the last four weeks is considered an active retail customer or recruited affiliate.

Additionally, keep in mind that KIWIsmart rank certification only counts for six months.

No of your activities, once you get a rank, you retain it for six months. You are reranked depending on your qualifying standards for that month at the end of the six months.

This then holds for an additional six months.

The six-month period is reset if you qualify for a higher level at any point, so take note of this.

Recurring Commissions

KIWIsmart uses a uni-level compensation scheme to pay residual commissions.

An affiliate is put at the head of a unilevel team in a unilevel pay system, and each affiliate they recruited is positioned immediately under them (level 1):

New affiliates brought on by any level 1 affiliates are added to the original affiliate’s unilevel team at level 2.

If any level 2 affiliates bring on new affiliates, they are promoted to level 3, and so on down a theoretically endless number of levels.

Payment for Unilever team levels is capped at twenty-one under the following conditions:

To unlock levels 1 through 3 of the unilevel team, a retail customer must be recommended and maintained.

The Unilever team’s levels 4 to 6 can be attained by recommending and keeping two retail clients.

The Unilever team’s levels 7 through 10 can be attained by recommending and keeping three retail clients.

You can advance from levels 11 to 21 on the uni-level team by recommending and keeping five retail clients.

Referred retail customers must be in good standing to qualify for residual commission.

By the aforementioned requirements, residual commissions are paid as a share of funds invested in trading credits over these twenty-one tiers at a rate of 70% as follows:

30 percent levels at level 1 (personally recruited affiliates). values of 2 to 5 to 10 percent 6 to 20% level, minus 2% 25 percent of 21

Immediately Pool

An undetermined amount of “commissions that were not qualified for in the past 30-day period” is used to support the Quick Start Pool, a monthly bonus pool.

Within 30 days of joining, KIWIsmart affiliates who introduce 10 retail clients are eligible for a portion of the Quick Start Pool for that month.

Bonus Pool NFT

Uncertain percentages of “commissions that were not qualified for in the past 30-day period” are used to pay the NFT Bonus Pool.

“Aldermen NFTs” and “Ambassador NFTs” both exist.

NFTs for aldermen are given when a KIWIsmart affiliate

qualifies for a top 300 ranking based on unilevel team volume (across 21 levels, with a minimum of 300,000 GV each month); and keeps a top 300 ranking for three months.

NFTs for Ambassadors are given when a KIWIsmart affiliate

reaches the top 13 based on unilevel team volume (across 21 levels, with a minimum of 3,000,000 GV per month) and keeps that ranking for three months.

According to what I understand, KIWIsmart’s NFT Bonus Pool is a monthly payment that is comparable to a regular share-based pool.

A KIWIsmart affiliate membership costs $49 per year to join.

KIWIsmart Verdict

As per KIWIsmart’s description

a decentralized autonomous group that accepts invitations exclusively.

KIWIsmart is a standard trading bot securities fraud scam masquerading as an MLM opportunity.

This is one of those bots with no traceable trading history that was developed by who knows who.

In November 2021, KIWIsmart launched its trading bot.

The absence of any reference to trade history raises suspicions.

The FTC Act may have been violated by KIWIsmart by withholding information about who built their bot, who owned it, and how it traded in the past (deceptive marketing).

The Ki100 trading bot from KIWIsmart generates passive profits that are used to commit securities fraud.

Regulators in the US use the Howey Test to prove the existence of an investment contract.

According to the Howey Test, if there is a “financial investment in a common company with a reasonable expectation of gains to be obtained from the labor of others” then an investment contract is present.

We have associates in KIWIsmart who transfer money to a bot.

A “common enterprise” is the bot. Additionally, it is clear that money is being invested in the bot “with a reasonable expectation of gains”.

Kiwismart is in charge of the bot, which satisfies the requirement that revenues “be earned from the work of others.”

At the time of publishing, neither KIWIsmart nor any other financial regulator is registered with the SEC.

This indicates that KIWIsmart is, at the very least, engaging in securities fraud.

For its part, KIWIsmart seems to be conscious of its actions.

In the Policies and Procedures of KIWIsmart, we have garbage like this in place of admitting their financial regulatory requirements;

Law that will apply, jurisdiction, and place

Any dispute that is not subject to arbitration will be decided by vote and handled by the DAO.

“The DAO” is neither a controlling statute, a court, nor a place for litigation.

Additionally, KIWIsmart doesn’t want its partners to expose the scam for what it is:

Instead of filing a registration statement with the SEC and revealing significant due-diligence data, KIWIsmart concentrates compliance on avoiding conducting a pyramid scheme.

Even so, it’s crooked.

First, according to KIWIsmart’s compensation scheme, retail clients must obtain residual commissions:

However, it becomes clear that recruited affiliates can be replaced a page or two later:

If you’re not concerned with securities fraud, Kiwismart makes it simple to check that your upline isn’t operating a pyramid scheme.

5.9 Records for Retail Sales

All Affiliates are obliged to maintain sales data for three years.

At random intervals, KIWIsmart will check if the sales requirements are being followed.

Every item a consumer buys is immediately added to qualification requirements every month.

In my opinion, aside from connections to affiliates, retail across Kiwismart will be practically nonexistent.

No Refunds 8.2

There will be no returns on any items because of the nature of the Trading Credits offer.

The retail sustainability of Kiwismart is seriously questioned by a dearth of information and anti-consumer tactics like “no refunds.”

In conclusion, KIWIsmart is an MLM trading system with the slogan “lulz can’t touch our money!”

Although traded money indeed comes from an affiliate’s or client’s account, neither the affiliate nor the consumer owns the bot, leaving their account vulnerable to fraud.

A “lulz can’t touch our money!” trading strategy can fail in one of three ways:

The bot cleans out accounts, regulators shut it down, or the admins pull a rigged trades exit scam.

Participants are ultimately left with losses, if not fully cleaned out, in any case.

I’ll include KIWIsmart’s usage of NFTs as the last point. I believe that this is a gimmick.

As bonus pool positions, NFTs have no advantages over a conventional share-based structure.

At the very least, there is no useful advantage. KIWIsmart can employ fashionable crypto buzzwords in its marketing thanks to the utilization of NFTs.

Additionally, KIWIsmart makes use of NFTs to help those who join first cheat those who join later:

In addition, those that joined KIWIsmart the previous year are hoping you’ll join the reboot so they can make up for any losses.

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