Nui claim Kala altcoin has “stability and protection with the SEC”
As part of continued efforts to mislead potential investors on MLM cryptocurrency offerings and US securities law, in an April 23rd blog article Nui claim its Kala altcoin has “increased stability and protection with the SEC”.
In a nutshell, Nui’s entry into the cryptocurrency MLM niche spans Symatri, Kala and Mintage Mining.
Nui runs Symatri, which is essentially a task-driven social network.
Two components of Symatri are Core and Reach, through which Kala tokens can be earned by Nui affiliates.
Here’s how Nui described the relationship in a December 13th blog post last year;
Kala is a utility token designed specifically for the Symatri Ecosystem. Unlike other cryptocurrencies, Kala tokens have inherent value and can be redeemed for real rewards through Symatri’s platforms: CORE and REACH.
All of these companies are part of Nui, are ultimately run by the same people and are based out of Utah.
But you won’t see that admitted or acknowledged on any of Nui’s websites.
Another branch of Nui is Mintage Mining, through which Nui affiliates have access to cloud mining services. More on that later.
With respect to Kala, last year Nui claimed it had “the best cryptocurrency legal representation on the planet“.
This unnamed legal representation were supposedly “specialized in cryptocurrency” and “ready to stand by” Nui, with respect to their Kala ICO launch.
That claim was made last November. Since then we’ve seen the SEC start to enforce regulation of cryptocurrencies tied to unregistered securities.
And that apparently has led to Nui’s “best cryptocurrency legal representation on the planet” to conclude;
In 2017, the cryptocurrency market came under intense scrutiny from many governments and the SEC in the United States.
The SEC has been taking steps toward defining which ICOs and cryptocurrency tokens should be considered securities, thus requiring security regulation.
Due to its simple design build, several ERC20 tokens are currently under investigation and may receive regulatory or legal action.
Moving from an ERC20 token to a unique blockchain establishes Kala’s utility and value as a cryptocurrency, not a security, and confidently places Kala in compliance with SEC guidelines.
To be clear: US securities law hasn’t changed since last November.
There’s also no mention of ERC20 tokens (or cryptocurrency at all for that matter) anywhere in the Securities and Exchange Act.
All we’re seeing is US regulators starting to actively enforce existing securities regulation with respect to the MLM cryptocurrency niche.
It is and always has been illegal to offer unregistered securities through an MLM opportunity. It wasn’t until 2017 however that we actually saw enforcement take place.
Through Nui, an MLM income opportunity, affiliates acquire Kala tokens. Nui also generate revenue by selling pre-generated Kala tokens directly to the public, complete with a non-MLM referral program.
Regardless of whether they’re acquired directly or through Nui’s MLM opportunity, investors acquire Kala on the expectation they will increase in value.
Nui themselves create this expectation by claiming Kala is “in compliance with SEC guidelines” and will soon be listed on public exchanges.
Once Kala gets on crypto exchanges, its currency value can begin to take off.
Due to its inseparable integration into the Nui MLM opportunity, Kala (no matter what blockchain script it runs off) is a securities offering.
Earlier in this article I mentioned Mintage Mining, another shell company tied to Nui.
Like Kala token, Nui claim Mintage Mining’s securities offering is “pre-compliant” with the SEC.
As per CEO Darren Olayan, regulatory compliance with the SEC for Nui however means being able to quickly disappear offshore if they are investigated.
If Nui management were actually serious about regulatory compliance, Nui and its attached shell companies would all be registered with the SEC.
Instead they’re playing the “what can we probably get away with right this moment” game.
One need only look as far as the MLM cryptocurrency companies targeted by US regulators to see how this plays out.