Cracks Appear as Critics Label Bitconnect a Ponzi Scheme

cracks appear as critics label bitconnect a ponzi scheme - Cracks Appear as Critics Label Bitconnect a Ponzi Scheme



Economics

To its founders, Bitconnect “is an open source, peer-to-peer, community-driven decentralized cryptocurrency that allow people to store and invest their wealth in a non-government controlled currency, and even earn a substantial interest on investment”. To its critics, Bitconnect is a pyramid scheme that rewards early adopters and leaves stragglers holding their bags. While cynics might argue the same of many cryptocurrencies, evidence is mounting that Bitconnect is guilty of greater malfeasance.

Also read: A Closer Look at How Three of the Biggest Scamcoins Lure Its Investors

A P2P Ponzi?

Accusations of “scam coin” are tossed about readily in crypto, with even such robust institutions as Dash not immune from the pejoratives. Pre-mining an overly-generous amount of coins and directly scamming investors are two very different matters, however. In recent weeks, cracks have started to appear in the dam holding together Bitconnect which suggest that all is not as it seems.

After launching in 2016, the market cap of Bitconnect’s BCC currency swiftly rose to $2 billion, placing it in the crypto big league. It’s since plummeted to a quarter of its ATH, and, in a widely shared tweet from Vitalik Buterin, the Ethereum chief deployed the word that every enterprise dreads – ponzi.

1510269755 925 cracks appear as critics label bitconnect a ponzi scheme - Cracks Appear as Critics Label Bitconnect a Ponzi Scheme

Referrals Upon Referrals

It is not so much Bitconnect’s market cap that has caused concern as the referral scheme that the company deploys. Such programs are not unusual, fueling everything from health supplements to crypto, where many traders share referral links to exchanges, wallets, and token sales. There’s a difference between receiving an Amazon affiliate-style commission however and joining a scheme in which the only way to profit is by ensnaring more investors. Sooner or later that house of cards is bound to come toppling down.

1510269756 831 cracks appear as critics label bitconnect a ponzi scheme - Cracks Appear as Critics Label Bitconnect a Ponzi Scheme

Investors who put $10,000 into Bitconnect are promised daily interest of 0.25%, which works out at an annual return of over 90%. Throw in generous bonuses on top, and Bitconnect starts to sound extremely comfy…at first. A cursory glance at BCC’s Coinmarketcap chart shows the coin to be in rude health, trading at around $270. But what’s that plummeting blue line? That’ll be Bitconnect’s market cap, which has fallen through the floor since the start of November. Falling is a recurring theme here, as anyone who’s tried to research Bitconnect and fallen through a rabbit hole of shell companies and crazy videos will attest. As one YouTube commenter put it:

It’s like scientology merged with hillsong infused with dorks and used car salesmen.

Seven Circles of Earnings

cracks appear as critics label bitconnect a ponzi scheme - Cracks Appear as Critics Label Bitconnect a Ponzi Scheme
Not Bitconnect

Bitconnect is a multi-faceted platform (that’s why its explainer video alone runs for three minutes), but it’s the lending program which has caused the most commotion. The scam/legitimate money-making opportunity works as follows:

1. Deposit bitcoin with Bitconnect
2. Purchase BCC on their exchange
3. Invest these coins in Bitconnect Lending
4. Earn daily interest and get your capital back after so many days

READ  Floyd Mayweather Fights in Bitcoin's Corner

Where does Bitconnect make the money to pay all these generous bonuses? That’s classified, and all part of the secret sauce that makes Bitconnect (head developer’s name: “Satao Nakamoto”) so unique. Best guess is it involves the company’s seven-tier recruitment scheme that pays referrals for referrals for referrals.

1510269756 756 cracks appear as critics label bitconnect a ponzi scheme - Cracks Appear as Critics Label Bitconnect a Ponzi Scheme

One vociferous exponent of the platform is Marko Stokelj of Coincodex, who told news.Bitcoin.com:

Bitconnect employs a number of dubious methods in order to operate and promote its business. The business model outlined by the company is economically unsustainable with the current level of returns unable to be validated by any legally known investment system. As a result, we have taken the decision to distance ourselves from this project, delist BCC from the top 100 listings and issue a warning on the coin overview page.

Crashing This Exchange With No Survivors

Of course, there are two sides to every crypto coin, and many of the accusations being flung at Bitconnect could equally apply to bitcoin in its earliest days: no one knows the identity of the project’s founders, or even where they’re based short of “the far east”. With most of the BCC in existence locked in the company’s exchange, if its founders were to perform an exit scam or wind up behind bars, millions of dollars of bitcoin would instantly be locked up and BCC would be rendered worthless.

But What About All The Good Things Bitconnect Did?

The knives might be out for Bitconnect at present, but the platform still has a loyal army of supporters who are prepared to defend it to the hilt. Given that Bitconnect have been as good as their word to date, furnishing their investors with all profits due, proponents are aggrieved at the flak their community of “like-minded, freedom loving individuals” is taking.

1510269756 44 cracks appear as critics label bitconnect a ponzi scheme - Cracks Appear as Critics Label Bitconnect a Ponzi SchemeBitconnect’s defenders may be swift to decry criticism of the P2P exchange, but the murmur of dissent is starting to rise into a chorus that can’t be ignored, as a Twitter search for “bitconnect scam” reveals. There are many reasons why the platform’s founders may choose to obfuscate their identities, and nothing untoward should necessarily be read into this. Nevertheless, until the Bitconnect team can provide more clarity on how their system of magical internet money works, aspiring investors would be advised to approach with caution. If that levee ever breaks, the fallout could get very messy.

Do you think Bitconnect is a scam or are haters just hating? Let us know in the comments section below.


Images courtesy of Shutterstock, Bitconnect, Coinmarketcap, and Comedy Central.


Need to calculate your bitcoin holdings? Check our tools section.

READ  PR: BitBoost Starts Last Phase of Token Sale After Releasing Decentralized E-Commerce Platform for Testing

http://platform.twitter.com/widgets.js
Source Link

145 Replies to “Cracks Appear as Critics Label Bitconnect a Ponzi Scheme”

  1. I just want to say I’m all new to blogs and actually loved your web-site. Likely I’m want to bookmark your blog . You amazingly come with beneficial articles and reviews. Thanks a lot for sharing your blog.

  2. MichaelJemery.com is a site with many hypnosis downloads. Whether you are looking for free hypnosis downloads, self hypnosis download for mp3, video and any audio files, Michael Jemery has the downloads for you. You can download hypnosis from apps, audio, mp3 and even youtube !

  3. I simply intend to notify you that I am new to posting and completely liked your page. Very possible I am prone to bookmark your blog post . You seriously have great article information. Admire it for share-out with us your very own domain page

  4. My developer is trying to persuade me to move to .net from PHP. I have always disliked the idea because of the costs. But he’s tryiong none the less. I’ve been using Movable-type on a variety of websites for about a year and am worried about switching to another platform. I have heard excellent things about blogengine.net. Is there a way I can transfer all my wordpress content into it? Any help would be greatly appreciated!

  5. You could definitely see your enthusiasm in the work you write. The arena hopes for even more passionate writers like you who are not afraid to mention how they believe. All the time follow your heart. “Until you’ve lost your reputation, you never realize what a burden it was.” by Margaret Mitchell.

  6. Hey, you used to write excellent, but the last several posts have been kinda boring… I miss your super writings. Past several posts are just a little bit out of track! come on!

  7. What i don’t understood is in fact how you are no longer actually a lot more smartly-appreciated than you might be now. You are very intelligent. You already know thus significantly with regards to this matter, made me personally consider it from numerous numerous angles. Its like men and women don’t seem to be involved until it is one thing to do with Lady gaga! Your own stuffs outstanding. Always handle it up!

  8. Attractive section of content. I just stumbled upon your weblog and in accession capital to assert that I acquire actually enjoyed account your blog posts. Anyway I will be subscribing to your feeds and even I achievement you access consistently fast.

  9. I’m extremely impressed with your writing skills and also with the layout on your weblog. Is this a paid theme or did you modify it yourself? Anyway keep up the nice quality writing, it is rare to see a nice blog like this one these days..

  10. I¡¦m no longer certain where you are getting your information, but good topic. I must spend a while learning much more or understanding more. Thanks for great information I was in search of this information for my mission.

  11. We’re a group of volunteers and opening a new scheme in our community. Your website offered us with valuable info to work on. You’ve done a formidable job and our whole community will be thankful to you.

  12. Thank you a bunch for sharing this with all folks you actually understand what you are speaking approximately!
    Bookmarked. Kindly additionally consult with my site =).
    We could have a link exchange agreement among us

  13. Definitely believe that which you stated. Your favorite reason appeared to be on the web the easiest thing to be aware of. I say to you, I certainly get irked while people think about worries that they just don’t know about. You managed to hit the nail upon the top as well as defined out the whole thing without having side effect , people could take a signal. Will probably be back to get more. Thanks

  14. I am not sure where you’re getting your info, but great topic. I needs to spend some time learning much more or understanding more. Thanks for excellent information I was looking for this info for my mission.

  15. I do accept as true with all the ideas you’ve offered to your post. They’re really convincing and can certainly work. Still, the posts are very short for beginners. May just you please extend them a little from next time? Thanks for the post.

  16. I enjoy you because of your whole labor on this site. My niece takes pleasure in carrying out investigations and it’s really simple to grasp why. Almost all know all relating to the compelling tactic you make informative tricks through this web blog and as well as inspire participation from website visitors on this issue and our child is always learning a whole lot. Have fun with the remaining portion of the year. You are always performing a really great job.

  17. hello!,I like your writing very much! share we keep in touch extra about your article on AOL? I require an expert in this space to solve my problem. May be that is you! Looking forward to look you.

  18. Hi there, just became alert to your blog through Google, and found that it’s truly informative. I’m gonna watch out for brussels. I will be grateful if you continue this in future. Numerous people will be benefited from your writing. Cheers!

  19. Thanks for sharing superb informations. Your web site is so cool. I’m impressed by the details that you have on this web site. It reveals how nicely you understand this subject. Bookmarked this website page, will come back for more articles. You, my friend, ROCK! I found simply the information I already searched all over the place and just could not come across. What a great web-site.

  20. Whats up very cool blog!! Man .. Excellent .. Amazing .. I’ll bookmark your blog and take the feeds additionally…I’m happy to search out numerous helpful info right here in the put up, we’d like work out more techniques in this regard, thanks for sharing.

  21. Hi, Neat post. There is an issue together with your site in web explorer, could test this… IE nonetheless is the marketplace leader and a large section of folks will leave out your excellent writing because of this problem.

  22. I want to get across my love for your kindness giving support to men who absolutely need help with this area of interest. Your real dedication to getting the message along came to be extremely productive and has truly empowered many people much like me to achieve their goals. The useful publication means so much a person like me and even more to my mates. Thanks a lot; from all of us.

  23. Somebody necessarily lend a hand to make critically posts I’d state. This is the very first time I frequented your website page and to this point? I amazed with the analysis you made to make this particular post amazing. Excellent activity!

  24. Usually I don’t learn article on blogs, however I would like to say that this write-up very pressured me to try and do so! Your writing taste has been amazed me. Thank you, very great post.

  25. Enjoyed reading this, very good stuff, thankyou . “I will do my best. That is all I can do. I ask for your help-and God’s.” by Lyndon B. Johnson.

  26. I think this is among the most vital info for me. And i am glad reading your article. But want to remark on few general things, The site style is ideal, the articles is really excellent : D. Good job, cheers

  27. Excellent post. I was checking continuously this blog and I am impressed! Extremely useful information particularly the last part 🙂 I care for such info much. I was looking for this particular information for a very long time. Thank you and best of luck.

  28. Its like you read my mind! You appear to know so much about this, like you wrote the book in it or something. I think that you can do with a few pics to drive the message home a bit, but instead of that, this is excellent blog. A great read. I will certainly be back.

  29. Thanks, I have recently been searching for information about this topic for a while and yours is the greatest I’ve discovered so far. However, what in regards to the bottom line? Are you sure about the source?

  30. What i do not understood is in reality how you’re not actually a lot more smartly-liked than you may be now. You are very intelligent. You understand thus considerably when it comes to this matter, made me for my part consider it from numerous various angles. Its like men and women are not fascinated unless it’s something to accomplish with Girl gaga! Your individual stuffs excellent. At all times maintain it up!

  31. you’re in point of fact a good webmaster. The site loading speed is incredible. It kind of feels that you’re doing any distinctive trick. Furthermore, The contents are masterpiece. you’ve done a excellent process on this topic!

  32. I was recommended this web site by my cousin. I’m not sure whether this post is written by him as nobody else know such detailed about my difficulty. You’re incredible! Thanks!

  33. I like the valuable info you provide in your articles. I will bookmark your blog and check again here frequently. I am quite certain I’ll learn plenty of new stuff right here! Good luck for the next!

  34. A person essentially lend a hand to make severely posts I might state. This is the first time I frequented your web page and up to now? I amazed with the research you made to create this particular publish incredible. Fantastic job!

  35. I don’t even know how I ended up here, but I thought this post was great. I don’t know who you are but certainly you are going to a famous blogger if you aren’t already 😉 Cheers!

  36. I have not checked in here for a while as I thought it was getting boring, but the last few posts are good quality so I guess I will add you back to my everyday bloglist. You deserve it my friend 🙂

  37. You actually make it appear really easy with your presentation however I find this matter to be really something which I feel I might never understand. It sort of feels too complicated and very extensive for me. I’m having a look ahead for your subsequent publish, I’ll attempt to get the hold of it!|

  38. Hi there, just became alert to your blog through Google, and found that it’s really
    informative. I’m gonna watch out for brussels. I’ll be grateful if you continue this in future.
    A lot of people will be benefited from your writing.
    Cheers!

  39. Very interesting information!Perfect just what I was searching for! “The right to be heard does not autmatically include the right to be taken seriously.” by Hubert Humphrey.

  40. I was suggested this blog by my cousin. I’m not sure whether this post is written by him as no one else know such detailed about my trouble. You are incredible! Thanks!

  41. Very interesting information!Perfect just what I was searching for! “Charity is injurious unless it helps the recipient to become independent of it.” by John Davidson Rockefeller, Sr..

  42. I have not checked in here for some time because I thought it was getting boring, but the last few posts are good quality so I guess I will add you back to my everyday bloglist. You deserve it my friend 🙂

  43. I do accept as true with all of the ideas you have offered on your post. They are very convincing and will certainly work. Nonetheless, the posts are very quick for beginners. Could you please prolong them a little from next time? Thanks for the post.

  44. Hello, i think that i saw you visited my weblog so i
    came to “return the favor”.I’m attempting to find things to improve my website!I suppose
    its ok to use a few of your ideas!!

  45. Thanks , I’ve recently been looking for information approximately this subject for a while and yours is the greatest I have discovered till now. However, what concerning the conclusion? Are you positive in regards to the supply?

  46. Generally I do not read post on blogs, but I
    wish to say that this write-up very pressured me to check out and do so!
    Your writing taste has been surprised me. Thanks, very great post.

  47. you are in point of fact a good webmaster. The web site loading speed is amazing. It kind of feels that you are doing any distinctive trick. Moreover, The contents are masterpiece. you’ve done a magnificent activity in this topic!

  48. Very interesting information!Perfect just what I was looking for! “People everywhere confuse what they read in newspapers with news.” by A. J. Liebling.

  49. Thank you for the auspicious writeup. It in fact was a amusement account it. Look advanced to far added agreeable from you! However, how could we communicate?

  50. I was wondering if you ever considered changing the
    page layout of your blog? Its very well written; I love what youve got to say.
    But maybe you could a little more in the way of content so
    people could connect with it better. Youve got an awful lot of text
    for only having one or 2 images. Maybe you could space it out better?

  51. I’ve been browsing online more than 3 hours today, yet I never found any interesting article like yours. It is pretty worth enough for me. In my opinion, if all webmasters and bloggers made good content as you did, the internet will be a lot more useful than ever before.

  52. I want to show thanks to this writer for rescuing me from such a predicament. Right after scouting through the world wide web and getting proposals which were not productive, I thought my life was well over. Living without the strategies to the difficulties you’ve fixed as a result of your main review is a crucial case, as well as those which could have adversely damaged my career if I had not encountered your blog. Your primary expertise and kindness in touching a lot of stuff was helpful. I don’t know what I would’ve done if I hadn’t come upon such a step like this. I’m able to at this time look forward to my future. Thank you very much for your skilled and amazing guide. I won’t be reluctant to endorse the website to any individual who will need counselling about this situation.

  53. Hello, you used to write excellent, but the last few posts have been kinda boring¡K I miss your super writings. Past several posts are just a little out of track! come on!

  54. I was suggested this web site by my cousin. I’m not sure whether this post is written by him as nobody else know such detailed about my difficulty. You are wonderful! Thanks!

  55. This design is steller! You certainly know how to keep a reader entertained.

    Between your wit and your videos, I was almost moved to start my own blog
    (well, almost…HaHa!) Fantastic job. I really loved what you had to say, and more than that,
    how you presented it. Too cool!

  56. We’re a group of volunteers and opening a new scheme in our community. Your site provided us with valuable information to work on. You have done an impressive job and our whole community will be grateful to you.

  57. Wow! This can be one particular of the most useful blogs We have ever arrive across on this subject. Basically Fantastic. I am also a specialist in this topic so I can understand your hard work.

  58. After looking at a number of the blog articles on your web site, I honestly like your technique of blogging.
    I bookmarked it to my bookmark website list and will be
    checking back in the near future. Please
    check out my website as well and tell me what you think.

  59. Howdy, I think your website may be having
    browser compatibility problems. When I take a look at your web
    site in Safari, it looks fine however when opening in I.E.,
    it has some overlapping issues. I simply wanted to give you a quick heads up!
    Apart from that, fantastic blog!

  60. Thanks for another informative site. Where else may I am getting that type of info written in such an ideal way? I have a venture that I am just now running on, and I’ve been at the glance out for such information.

  61. My brother recommended I might like this web site. He was entirely right. This post truly made my day. You cann’t imagine simply how much time I had spent for this info! Thanks!

  62. My spouse and i have been joyous Albert managed to do his researching out of the precious recommendations he obtained through the web page. It is now and again perplexing to simply continually be offering key points which often people today have been making money from. And we also keep in mind we now have the blog owner to appreciate for this. These illustrations you’ve made, the straightforward web site navigation, the friendships you can make it easier to create – it’s got all exceptional, and it is letting our son and our family consider that that subject is entertaining, and that’s tremendously essential. Thank you for all!

Leave a Reply

Your email address will not be published. Required fields are marked *