Karatbars International got involved in the cryptocurrency space with the claim of creating a new global monetary system, backed by gold and operated by the blockchain. The company had suggested it had gold reserves sources from Madagascar, valued in the billions of dollar. However, CoinDesk has reported that Madagascar’s government agencies have denied Karatbars’ claims. Bitcoin.com and renowned Bitcoin evangelist Antonopoulos have made sharper claims, going as far as calling Karatbars a ponzi.
Other cryptocurrency media have touted similar allegations against Karatbars International and its founders. However, as CoinCurb reported earlier, cryptocurrency media has had a sudden shift towards Karatbars International, as most media were on the company’s payroll in the past.
From Love to Hate: Karatbars International and the Crypto Media
The backlash Karatbars International currently faces from Crypto media is at odds with grand support it has received from major blockchain media titles.
Earlier this year, Cointelegraph sold banner ads, sponsored content, and even organic mentions to Karatbars International and its founders, Harald Seiz, Josip Heit, Alex Bodi, and Ovidiu Toma. CCN, another major coin media, also offered a spread of promotional services to Karatbars. Other media, including Forbes, were also receiving payments to promote Karatbars. However, things have taken a sudden turn.
After CoinDesk and Antonopoulos presented allegations against Karatbars International, Forbes fired the columnist that endorsed Karatbars, Cointelegraph removed all ads for the company and went on to claim Karatbars had breached its terms of services, and CCN quietly erased any presence of Karatbars from its articles.
How did Karatbars get to this point?
Harald Seiz, Josip Heit, Alex Bodi, and Ovidiu Toma have made Bold Claims
Karatbars International and its founders, Harald Seiz, Josip Heit, Alex Bodi, and Ovidiu Toma, have made bold claims on what they can deliver to the investors of the cryptocurrency issued by the company. KaratGold Coins (KBC) are supposed to be backed by real gold, and both official Karatbars statements and the statements of the company’s CEO, Harald Seiz, regularly affirm these claims.
At varying points, different gold amounts have been touted to be convertible against KBC. The first major incident was the Gold Independence Day, a major event sponsored by Karatbars International, where the company claimed all KBC would be converted to 1 gram of gold. This was an incredible promise as 12 billion KBC have been minted and backing all this cryptocurrency with real gold would need 12 billion grams of bullion, which is valued at over 577 billion USD. In fact, this much gold is equal to a tenth of all gold reserves on Earth.
The event happened and no gold was delivered, leaving investors enraged, and cryptocurrency media titles hungry for news.
Karatbars Dubai Event: Even more Gold
In an event held earlier this year, Karatbars International attended an audience of thousands of investors in Dubai.
Karatbars International and its founders, Harald Seiz, Josip Heit, Alex Bodi, and Ovidiu Toma, pitches the company and KBC. Various claims were made at this event, including a valuation target for $200 billion for KBC. This figure is greater than the valuation of Bitcoin, the most well-known cryptocurrency in the world. However, Karatbars made other, even more grand claims.
The company reverted the claim of KBC being backed by 1 gram of gold and suggested that will instead be backed by 1 kilogram of gold. To put this into clarity, 12 billion KBC would be backed by 12 billion kilograms of gold, as per the word of Karatbars’ officials. Interestingly, the entire gold supply on Earth is less than 156 million kilograms.
The event in dubai was held mid-second quarter and Karatbars now faces the dilemma of results, which have fallen far short of promises. Neither KBC is valued at $200 billion nor has the company muscled a means to deliver 12 billion kilograms of gold. To make matters worse, any entities associated with the KBC’s price and trade have issued severe warnings. CoinMarketCap and CoinGecko warn that the Netherlands authorities have issued concerning statements about Karatbars, and CoinGecko further states that KBC is washtraded, a form of volume misrepresentation used to feign token demand.
HitBTC, the leading exchange for KBC, a listing that Karatbars International once revelled, has now delisted the coin. As the story unfolds, investors wait, hoping to be paid their 12 billion kilograms of gold.