Is Kibho Coin A Very Dangerous Crypto Ponzi Scheme?

NOIDA (CoinChapter.com) — Kibho Coin, which claims to be India’s first cryptocurrency, entered the market with substantial promises to “revolutionize digital finance.” Operating on the Kibhoscan Blockchain, the project claimed that it would integrate blockchain technology into sectors such as real estate and online shopping, offering a more transparent and secure payment system.

However, Kibho Coin’s path has been marred by controversies and regulatory challenges that cast serious doubts on its business practices and sustainability.

Problems and Scandals: MLM Concerns and Regulatory Scrutiny

Kibho has consistently attracted negative attention due to its business model and its compliance with regulatory standards.

Regulatory bodies like the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) have expressed concerns, particularly around its multi-level marketing (MLM) structure.

In 2022, the Reserve Bank of India (RBI) highlighted the risks associated with MLM strategies in cryptocurrencies, pointing out their potential for fraud and financial loss​. Often criticized for mimicking pyramid schemes, MLM schemes are unsustainable as they reward recruitment over product sales or service delivery.

Despite claiming to offer genuine cryptocurrency products, Kibho emphasizes recruitment in its earnings structure, drawing uncomfortable parallels to pyramid schemes that typically lead to significant losses for most participants.

Furthermore, SEBI has taken legal action against Kibho Innovations Pvt. Ltd., issuing a show-cause notice for allegedly operating a Ponzi scheme. This action adds to the project’s challenges in gaining mainstream credibility and trust among potential investors​.

Despite its issues with the regulatory bodies, the KBC coin continues to attract attention. LBank announced plans to list Kibho coin on its platform soon.

Kibho Coin and Its Tokenomics

Despite these controversies, Kibho Coin persists with its development, focusing on its tokenomics and ecosystem. The project uses a Proof of Authority (PoA) consensus mechanism, which is more energy-efficient and faster than traditional Proof of Work systems.

This model is supposed to provide a scalable and environmentally friendly blockchain solution.

Kibho coin is currently available for trading on the BitMart exchange, though it seems to be doing quite poorly. According to data from Coingecko, the price of the Kibho coin dropped nearly 45% since its launch on April 29 to reach a daily low near $0.034 on May 7.

However, the tokenomics of Kibho Coin, which are central to its ecosystem, are under scrutiny. The coin functions as a medium of exchange and is also crucial for staking, governance, and rewards within the Kibho platform.

Although the platform’s growth could increase the demand for Kibho Coin, the overall success of the project hinges on overcoming regulatory barriers, rebuilding investor confidence, and distancing itself from controversial MLM practices.