Bitconnect Review – Is It A Scam Or Legit?
Before starting this review, I would like to ask you a question: “Is it possible to commit to a multi-billion dollar scam that has been arranged right in front of our eyes?”
The answer is “YES.” It is possible, and BitConnect is one of them!
Is BitConnect A Scam? – Introduction
It took about a year for BitConnect to become a digital currency and its investment platform to be visited, but its founders and maintainers are not there for the reasons they want it. BitConnect became so profitable almost immediately that it seemed as if the grandchildren of Charles Ponzi are the founders of this site!
The story of this so-called digital currency began with a headline: Double-digit return on investment every month! Guaranteed! And this headline was something that did not fit with any reasoning.
What is BitConnect All About?
Bitconnect, a digital currency lending and exchange platform closed in January 2018. Kevin BitConnect, or BCC, was named by most digital currency community members, including Vitalik Butrin, the Atrium Ponzi Design founder.
If we want to categorize scam projects, these projects are divided into two types:
- Ponzi and pyramid projects
- Sheet coins
First, I would like to draw your attention to the Ponzi scam-style and its methods.
The first category is Ponzi, the most famous of which over the past few years were three projects, Bitconnect, Plustoken, and the largest of which is Vanquin, which snatched about $ 3.7 billion from investors through coin offerings.
The second category is the Stokes, who generally make a name for themselves and sell it to investors with false promises, lack of economic efficiency, lack of demand, and the necessary market, and only through advertising.
This type of coin sells tens of thousands of dollars over time, and the project team collects the money and runs away.
It isn't easy to know this category, and maybe 80 to 90% of cryptocurrency market currencies are such currencies.
The Ponzi Scheme
The Ponzi scheme is a fraudulent investment operation in which investors are promised unusual and higher than usual returns. This trick is usually done in financial institutions that collect people's capital centrally in one area. The fate of systems established according to the Ponzi scheme or Ponzi is collapse because their real profits are less than what is offered to investors.
BitConnect used the Ponzi scheme to expand.
Suspicious Annual Profit
The suspicion began when Bitconnect promised an annual profit of 120 percent for each BCC. The company had introduced a risk-free return on investment as a scam.
BitConnect Failed in 2018
BitConnect (BCC) failed in 2018, falling from $ 437 to $ 30, and they officially shut down their lending and exchange platform. The Texas Government Securities Board and the Secretary of North Carolina Securities for illegally selling securities as well as Distributed Denial-of-Service (DDoS) attacks issued a warning of a halt, and BitConnect had to discontinue doing business.
The BitConnect Scheme Started in 2016
The scam scheme started in 2016 and offered to provide a loan. The lending platform exchanged BCC coins with bitcoins and asked lenders to keep some of these coins in their account for a certain period of time with a daily interest rate of 0.25%. A controversial trading robot paid profits.
The Company's Explanation of the Process
You could find an explanation of this process on the company's website. This explanation stated:
“You can invest in Bitcoin BitConnect on the BitConnect lending platform exclusively through the BitConnect dashboard. Investment options include making a profit from the BitConnect trading robot. You will receive a profit based on the investment option you choose. After the investment period, you will get your capital back, and you can withdraw it from the BitConnect platform or re-invest in this platform for a daily profit.”
The rather strange fact here is that these promises may actually be possible for a short time period. Prices will rise again rapidly, but this is just the story's appearance, and we needed to save customers from this catastrophe that was sure to happen.
They claimed a trading robot that they had invented could predict the lively foreign exchange market in 2017. They said:
“But do not worry, download our exclusive and risk-free software and sit and watch the magical event!”
BitConnect even went that far as to offer a credit based on your investment amount. For a $ 10,000 standard investment, the investor would receive a credit of up to 25% of the return over a four-month period by making a profit and adding $ 9,000 to the principal. BitConnect counted on you telling your friends about this investment opportunity, and your friends will respond to you how exciting! Register me too!
This referral program is a classic point of reference for them, and they do the amazing things that Ponzi did over the years.
New Investors Pay the Existing Ones
It suffices to say that only if each of these programs allocates a percentage of the latest investment to investors or acquires a new subsidiary can they return the money owned to the previous people.
But at that time, the price model and the great interest and excitement that had been created in this field overshadowed this fact, and BitConnect continued to work, and a large number of people who had entered this BitConnect plan and got upset at these program schemes. You know, I think a lot of these people had little investment experience, and a terrible storm hit them.
But How Did BitConnect Work At All?
The general definition of Bitconnect was a safe and effective coin in terms of energy consumption that used both proofs of work and proof of stock for validation. The coin used a faster proof-of-distribution mechanism for the initial presentation of the coin, and after a few days, they transferred the coin to a coin based on stock proof.
A total of 28 million BitConnect coins were in circulation, and this coin had variable stock proofs that periodically made payments as follows.
- First 6 months -> 60% (10% per month)
- Second 6 months -> 50% (8% per month)
- Third 6 months -> 40% (7% per month)
- Fourth 6 months -> 30% (5% per month)
- Fifth 6 months -> 20% (3% per month)
- Sixth 6 months -> 10% (1.4% per month and so on…)
But that was just the appearance of the work, and another coincidence fell behind.
How Is A BitConnect Coin Created?
The following is a claim made by the company at the time:
“This coin uses a special algorithm called proof of work/proof of stock to secure the network. The annual rate of return on using this currency is 120%. The only thing you need to do to achieve such a goal is, “Keep your coins in the Bitconnect-QT wallet.” Besides, it is possible to extract BitConnect using the CPU and GPU, and you do not even need a miner ASIC (Application-Specific Integrated Circuit) device like Bitcoin!”
But the reality was another story, and it caused a lot of people to lose their capital.
Interestingly, BitConntect was that BitConntect did not have a unique capability or advantage. Its benefits included the benefits of other cryptocurrencies, which were not few in number at the time.
Let's review this currency one more time. BitConnect (with BCC code) was a cryptocurrency and a website that guaranteed its users a rate of return of over 480% per annum in cash and depended on the amount of risk-free investment. The loss of capital even promised a profit of over 91.25% per annum. They claimed that the money came from a self-made cryptocurrency exchange robot.
But if you look at the official website guide for years to invest in the business they offer. You could see the writing errors on their website, which were, without a doubt, some of which seemed to be financially dubious. If not English, any legal business had at least one employee check and edited the texts' writing style before publishing them. These mistakes are prevalent among fraudulent websites because such people usually do not have employees, but why?
One reason is that fraudsters do not want to be identified by their employees after they disappear with the investors' money, and another important reason is that hiring an employee is costly.
Very Attractive But Unreal
But then I want to address the promises that the maker of this currency made.
- With more than $ 10,000, they claimed that your daily profit is 0.25%, which means an annual rate of return of 91.25%.
- That was not all. They also said that you get an extra 480 percent every year.
- Besides, the commission system will pay you 7% for each capital you invest again, and the person who has invested through you will receive 3% more, and the next person will receive 1%, and so on until the 11th person who becomes 12%.
- So if you invest the same amount three times a year, they should pay you more than 30%.
All this added to the guaranteed amount of more than 127.25% risk-free payment, in which we didn't even consider your reinvestment. But we all know very well that there is no legitimate business on the planet that can pay such a risk-free rate plus 480%.
Suspicious Trends in Their Business
To make things easier, let's take a look at how to invest in their trading robot and how they can make a profit.
- You have to send them bitcoins. They did not accept BCC or BitConnect coins (their own currency). They wanted bitcoins! Why? Because the currency they created will become worthless as soon as they close their website, but bitcoin will remain valuable.
- You bought BitConnect coins with Bitcoins directly from the BitConnect developers! Each time a buyer bought this currency, its price increased.
- What you were doing was giving them the currency you just bought from an exchange (bitcoin) in the hope of getting a higher value investment in 4 to 10 years and some daily profits. Profits were paid in bitcoins, but the amount was calculated in dollars. Now they had your bitcoin, and you had increased the value of their currency by buying it.
- This website also had many advertising programs. Many investors advertised it on YouTube, Facebook, and forums. This helped to attract several thousand customers. The larger the audience, the more investors are attracted.
- Investments from newcomers were used to pay existing customers.
All these were reasons to ask questions to avoid a financial disaster, but to some extent, what should have been done… wait a moment, this is not the end of the story. BitConnect has started its work again!!!!!!
The BitConnect digital currency and scam project has announced its return, this time with the BitConnect 2.0 project. The company launched its initial public offering on July 1, 2019, according to a Twitter message. This is the first time that this digital currency was in operation again since January 2018.
The purpose of BitConnect 2.0 is not clear, and its website does not contain any information about it. However, the digital currency community has reacted negatively to this tweet. Some people say that this project is another scam, and they shouldn't deceive anyone this time.
BitConnect has failed and is closed. The BCC coins have no value in global markets.
It is best to consult with experts in this field before entering digital currency trading. All in all, despite the many scams of this Hip plan, there are no positive points for BitConnect. BitConntect is a scam.
Hopefully, this article will make you more aware of potential fraudsters in the online world. Remember: “Prevention is better than cure.”
If you are deceived, there may be no way to get your money back. So be careful not to lose your hard-earned capital through a scam, like BitConnect and other online scams that are rapidly increasing.
Finally, it is great to know a legal and reliable online business to make money. I highly recommend the Wealthy Affiliate platform, which has been active for more than 16 years, and I have been a member for more than 3 years. You can join for free to check it out.
Wealthy Affiliate members have proven multiple times that making money online legally is possible without losing your capital.
Your opinion is important to me
Thoughts? Ideas? Questions? I would love to hear from you. Please leave me your questions, experiences, remarks, and/or suggestions about the Bitconnect Review – Is It A Scam Or Legit in the comments section below. You can also reach me by email at Jeannette@WorkFromAnywhereInTheWorld.com.
You might also enjoy these blog posts about making money from home: