Live Auction Kenya – Another Case of Desperate Desire “Kuomoka”



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It’s a beautiful sunny day, the birds are singing, the cars are racing down the road and your friend just told you about Live Auction, the new way to make money easily from the comfort of your home, or is it ?

Live Auction claims to be a peer-to-peer online investment platform where members buy and sell stocks for a profit. Actions for which company? Well, these are all virtual shares, imaginary if you will. In fact, Live Auction compares to the world’s most popular cryptocurrency, “just like bitcoin, our stocks operate on demand and the supply algorithm, while some buy, some sell, which makes it a continuous system with minimal risk “.

The online investment platform promises 30% interest in 4 days, 60% interest in 8 days and 95% interest in 12 days. This means that the longer you let your money stay in the system, the more you are expected to earn. Oh, there is also a 5% interest for each referral level that joins you (we’ll get to that later).

How it works

Once you have registered with Live Auction, users must then “bid” an amount of their choice between KES 1,200 and KES 200,000. At this point you’re not going to pay anything, it’s just showing interest. If your auction passes, you are matched with an already existing user on the platform, from whom you will get shares.

Here’s where it gets interesting, this user already has shares traded on the platform and these are the shares that were awarded to you after your auction. To finalize the transfer of shares, you must send, via M-PESA, the amount of your bid to the phone number of the person with whom the system has matched you. This person then confirms that they have received this money through the system and the actions are reflected in your account.

Notice that so far the platform has not dealt with money? It may seem like a legitimate way to make money as it gives a sense of security that the platform cannot go away with your investment, but there is more to it.

Red flags

In addition to moving their area of liveauction.cash To liveauction1.cash after just a few months of operation for unknown reasons, the platform itself has a few red flags which are a telltale sign of things to come:

First, there is no real “investment”. The money you bid on the platform is sent to someone else who has chosen to cash it out. So where does the platform get the money to pay the interest? Essentially, live auction users are just moving money around like a chama would. However, unlike a legitimate chama, the actions you’re supposed to get when you win an auction are just numbers on a screen.

Second, the platform requires the constant recruitment of new investors for it to actually work as intended. Despite the fact that Live Auction does not focus on existing members by recruiting new ones, the only way for current members to make money is if there is a demand for their shares, which cannot be the case only if there is a constant supply of new members – characteristics of a pyramid scheme.

Finally, and the final nail in the coffin, Live Auction was supposed to be upgraded on Thursday, November 12. A system upgrade that was expected to take approximately 72 hours is not yet complete. At first, admins would ask users for patience as they worked on restoring the service, but things apparently went wrong with all admins being completely silent.

To top it off, several users reported that before things went wrong, the latest round of twin auctions was for the benefit of the founders of Live Auction. This means that “the system” paired potential investors with the brains behind the product, essentially putting the money in the hands of the creators.

Missing investments?

At the time of going to press, the live auction department had yet to tell us what exactly was going on. The website, liveauction1.cash is also completely offline, after intermittent 404 errors since late Sunday night (November 15).

A number of users have come forward, having lost some of the money they had invested in the platform, hoping to be able to cash in big. Online reports and screenshots in our possession show that many people have invested funds ranging from KES 20,000 to hundreds of thousands of shillings.

Like any other pyramid scheme, there are some users who joined the platform early and actually made money through live auctions. A writer of Kampusville testifies to having made over 50,000 of his initial investment of 5,000, he notes however that he knew this was a multi-level marketing platform and was therefore careful with his investment. Unfortunately, this is not the same with everyone and others had even reinvested their earnings, in the hope of “kuomoka “, with the case of a person waiting to cash up to 500K from the platform (according to their screenshots).

Government intervention

Cases of such platforms are on the rise in Kenya and, ironically, live auction clones are already appearing within the WhatsApp and Telegram groups, promising to be “more legitimate.”

Besides the constant sprouting of pyramid schemes preying on innocent Kenyans desperate to survive, another constant has been the deafening silence of the relevant authorities. Besides sharing tweets and posts on Facebook warning the public against pyramid schemes, we have yet to see the government actively fight to protect its citizens from such scams.

Who will fight for us?

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