Before making an investment decision, the risks should be taken into account
Won’t Kuailian be a scam?
Let’s not fool ourselves. The first time you hear about such a novel project and with such an interesting profitability potential, all the warning lights switch on.
Won’t it be a scam?
Unfortunately, other companies that operated with cryptocurrencies turned out to be a fraud and disappeared overnight, leaving investors foolish.
The truth is that the first thing I did when I heard about this project was to Google “Kuailian scam”. The results (or the absence of negative testimonials), was reassuring.
Unfortunately, as Kuailian has gained prominence, bloggers and youtubers have proliferated, using the strategy of defamation without solid arguments to get visits and monetize their channels.
On the other hand, the testimonials of people who were already investing, the interviews with the founding partners of Kuailian that can be viewed on YouTube and the transparency that characterizes Kuailian in its operations are noteworthy.
In addition, they are members of the EEA (Ethereum Enterprise Agency) and they are being audited by Deloitte.
And for further guarantee, they are registered in Estonia, with registration code 14909553. That is, Kuailian is subject to the European Union regulatory framework.
Today that I can speak as an investor I can only say that my experience is unbeatable and that they have promptly fulfilled all their commitments.
In this video I explain to you how to track the daily returns that reach your wallet.
But if you want to go deeper, here I explain why I consider that Kuailian is not a scam.
Is the business model sustainable?
As we have already seen, Kuailian’s business model is based on the validation of blockchain transactions and their corresponding commission (token).
As long as there are transactions that generate tokens, there will be business for Kuailian.
Is there a risk that there will be no transactions? It doesn’t seem … rather the opposite. The blockchain consolidation foresees a boom in the volume of transactions.
Is the initial investment guaranteed?
The investments involve a commitment of permanence of 1,000 days. After that period, you can choose to extend the investment 1,000 more days or withdraw the capital.
However, you should keep in mind that you will not recover exactly the same amount you invested. What you will recover is your participation percentage in that day’s pool.
That percentage of participation will vary over time, but the initial investment it represents will not vary. With an example it is better understood:
If you buy kuais worth 10 ETH’s and in the pool there is a total of 10,000 ETH’s, your participation percentage is 0.1%.
If new investors come in over the days and the pool total becomes 20,000 ETH’s, your participation will be 0.05%. Although your % has been reduced, it represents the same investment, since 0.05% of 20,000 ETH’s are still 10 ETH.
The refund will not be paid to you in ETH’s, but in the different cryptocurrencies that the pool has that day. Its valuation may be lower or higher than the initial investment.
In other words, if the value of cryptocurrencies go very low(very unlikely), you will recover some cryptocurrencies that will have a much lower value in exchange in Euros than you invested.
Is there a guaranteed return?
The profitability is variable and depends on the efficiency of the Master Nodes.
However, Kuailian has a Machine Learning system that allows them to invest in the most efficient Master Nodes.
Yields are obtained in cryptocurrency (Ethereum)
That means they lack FIAT money guarantees. They do not have the backing of a government or a Central Bank that answers for them. In this article it’s well explained.
In addition, cryptocurrency deposits do not have a guarantee fund in case the company suspends payments or “disappears.”
But in my opinion, neither cryptocurrencies will collapse (rather the opposite) nor will Kuailian in particular disappear.
As I mentioned in the first point, its membership in the EEA and the Deloitte audit are still a guarantee.
The currency effect
As I have just explained, the fact that returns (and capital withdrawals, if necessary) are paid to the investor in cryptocurrency causes that the exchange rate to positively or negatively affect profitability.
Even so, the perspective of the main cryptocurrencies is upward, although this cannot be guaranteed by anyone.
In any case, the fact of collecting the returns every day implies a very high degree of liquidity, allowing the cryptocurrency to be converted to euros when the exchange rate is favorable.
The truth is that there is little legislation regarding cryptocurrencies. In a few countries they are prohibited, in others they are accepted normally and in others there are hardly any laws on which to rely.
As usually happens, technology goes far ahead of legislators.
In any case, it would not make much sense to legislate against progress. Just as today it would seem absurd to legislate against the Internet (which at the time was a disruptive technology such as blockchain is today).
At the fiscal level, there are also no concrete guidelines. I myself asked the tax agency about how they would pay these returns and they didn’t know how to give me a conclusive answer, but they finally told me that I should declare it as income from movable capital.
When the time comes I will ask again …
My Kuailian opinion
As you may have already guessed, my conclusion is that the risks, which exist as in any investment, are assumable and that the benefit / risk ratio is clearly favorable.
But I insist that this is nothing more than a personal opinion.
I advise you to Google kuailian reviews, to draw your own conclusions, and if you have any questions, contact me to help you to solve them.
You must make your own decisions, feel comfortable and above all, never invest money that you are not willing to risk.
And now, if you want to invest in Kuailian, it’s time to learn how to do it.