Fintelegram received through its whistleblower system the chat protocol of the Whatsapp group of the crypto-MLM company 21Coinworld. Here it becomes obvious that 21Coinworld has massive misunderstandings with its investors regarding what they have actually been promised to the investors. The company advertised with proceeds from cryptomining, but investors legally bought a participation certificate, which assures its buyers a share in the company profit (!). But what the heck, the management considers itself generously saying “the investors can regard the payments made so far as a ‘gift’”.
Read here the detailed telegram about 21Coinworld / Avatar Technologies
Instead of responding to the legitimate fears of its investors, the company points to the small print and promises thriving landscapes by expanding its Bitcoin vending business.
Summary of the chat transcript
[08.08.18, 15:32:53] 21Coinworld: Sorry for the somewhat late reply, we have a lot of work to do right now: On 26.06.2018 a company takeover of 85% by a new owner took place. The new owner also took over all Cointed ATMs, which are managed by Avatar Technology GmbH.
As a result of this restructuring, no more payouts will be made.
The profit participation right remains valid according to the capital market prospectus, the terms of which you have accepted.
08.08.18, 15:35:44] Investor: Dear XXX, what do no more payouts mean for the investors? What does the investor receive if there are no payouts? A bag of sweets or shopping vouchers?
[08.08.18, 16:00:52] ] 21 Coinworld: Hello YYY, according to the capital market prospectus you are of course entitled to the annual profit distribution. Further information is clearly defined in the capital market prospectus. The previous monthly payouts are to be regarded as a gift.
08.08.18, 16:46:08] +Investor: Don’t think that any of the investors risked their money for the payouts according to KMP, but of course primarily because of the promised bonuses. Even if all this is now correct according to the official documents, a very stale taste remains (at least with me).
This is by far my longest term investment in the crypto area and at all. As I said, I saw it coming and still trusted the promises (classic FOMO!).
[08.08.18, 17:12:08] +Investor: As far as I can remember, the capital market prospectus says that you can get a voucher for hosting services for the equivalent of the investment sum.
[08.08.18, 17:13:16] +Investor: It’s a cheek if you can’t get enough, Wirtl!!!
[18.08.18, 00:37:06] +Investor Then I formulate the question differently: do I see my money again or do I get something for it?
18.08.18, 02:17:13] +Investor: Some people ask me the same now as well…
[18.08.18, 09:05:19] +21 coinworld: Dear Ladies and Gentlemen, The Capital Market Prospectus stipulates that a distribution takes place to raise funds. This part of the prospectus has been discontinued. The letter must be sent to the investors.
Otherwise nothing has changed and nothing will change. The prospectus continues to run, and like already several times mentioned you receive the agreed upon interest.
Fintelegram Comments
There are some very interesting things about this discussion:
The 21Coinworld profit participation certificate model obviously corresponds to the Bittrex https://bittrex.com/. profit participation certificate model. Mining services in the amount of the invested capital were also promised there – with regular payments. We will investigate and are grateful for any information.
Fintelegram calls on 21Coinworld investors to contact us and make use of our whistleblower system.
