Excallit is an MLM affiliate recruitment scheme that offers payouts to its affiliates in the Veros digital currency.
What Is Excallit?
Excallit claims to have been founded in 2012 by Michael Juul, a Danish entrepreneur currently residing in Singapore.
However, the website was registered in Juul's name in 2014 at a Delaware, US address for a private company that provides business incorporation services for companies who which to become corporations within the state.
This is a common tactic, as Delaware's corporate laws are highly advantageous for corporations – many businesses are registered in the state but actually do business in other places in the US or sometimes even around the world.
None of these companies maintain a presence in Delaware, and Excallit is likely one of these companies.
Other companies Juul has been involved with prior to Excallit include GII Corp, a company that faced scam accusations. Juul was the co-founder of GII Corp at one point.
There are no products to buy or sell from Excallit. The only activity is to invest in the company and then recruit others to do the same in exchange for Veros, a crytocurrency similar to Bitcoin, but at a much lower valuation ($0.038 USD per 1 Veros).
The opportunity Excallit presents is to earn Veros digital currency by purchasing tokens that can be traded for Veros. Affiliates can also earn bonus commissions based on their recruitment efforts as well.
All buy-ins for Excallit are in Euros (EUR). There are eight membership levels. The minimum investment is the Intro level, which costs 100 EUR and provides 40 EUR worth of tokens to the affiliate. The top membership level, Elite, costs 39,200 EUR and provides 5,000 EUR in tokens.
The exact conversion rate between token and Veros is unknown. One would assume that 1 EUR worth of tokens provides the equivalent in Veros, which at its current valuation would be just under 28 Veros. However, there's no information provided on the token to Veros exchange rate.
The MLM recruitment scheme attached to Excallit rewards affiliates for recruiting heavily. Set within a binary compensation structure with the sponsoring affiliate at the top, affiliates receive a 10% commission on binary points generated from newly recruited investors.
There's a common term that's thrown about the digital currency marketplace – it's called “pump and dump.” It's used to refer to a new cryptocurrency that's promoted heavily by a company, driving its valuation up into the stratosphere prior to release (the “pump”), only to see its value plummet shortly afterward once the initial supply is sold off (the “dump”).
This typically occurs with digital currencies that are pre-mined by the originator company and are only available through them.
Individuals keen to invest in what they think will be the next bitcoin come in, investing large sums of fiat currency for a cryptocurrency that's valued very highly, only to see their investments crumble when the bottom drops out of the market.
Meanwhile, the company that sold their worthless digital coin gets to keep the money its clueless investors spent.
This is exactly what happened to Veros, the digital currency tied to Excallit. From November 29th 2016, when Veros was valued at its highest at $0.11 USD, the value has plummeted to its current low of $0.038.
In other words, the price of 1 Veros went from 11 cents to under 4 cents. At this point, anyone who sells their Veros does so at a loss, making it a losing investment.
Excallit, of course, loses nothing. They just take people's fiat currency and give them worthless tokens instead – tokens that can then be converted into a digital currency that is constantly shrinking in value.
Is Excallit it a scam? Juul and whoever else is behind the company are just awful business entrepreneurs, then the answer is no – it's just another failed competitor to Bitcoin. If the intention was to run a pump and dump, though, then yes – Excallit is a hell of a scam. Best bet – stay away.