It seems like the truth and cold-hard reality have finally caught up with the scheme. United Kingdom issued Bitconnect a notice with two months to prove its legitimacy. 1, texas State Security Board and North Carolina Secretary of State Securities Division warned that Bitconnect was not registered to sell securities in their respective states. On November 7, 2017, the government of the. Cryptocurrency, bitconnect (also spelled, bitConnect and stylized bitconnect, ticker, bCC) was an open-source cryptocurrency which was connected with the high-yield investment program. Verdict: Bitconnect BitConnectX are scams! "BitConnect Closes Exchange as States Warn of Unregulated is bitcoin dead may 2019 Sales". "Investing in BitConnect Lending - Bitconnect".
Bitconnect.co Review - to, ponzi or Not to, ponzi
Bitconnect was released in 2016 with the goal of allowing users to lend the value of Bitconnect coin in return for interest payments. Bitconnect interest fluctuated greatly with the volatility of Bitcoin, which its value was tied. So what exactly is it that Bitconnect does, and how do the above described three structural elements come together, when it comes to creating the investment ecosystem BCC creators seem so proud of? ICO for their Bitconnect X trading platform will still happen, and that trading for the BCC token will continue there. The Bitconnect lending platform was closed on January 16, 2018.
The reasons provided by the regulator bitconnect ponzi in a statement, are interesting to say the least. Mining will eventually be responsible for the creation.6 million BCCs. The Supply channel is based on mining and staking/minting. The operation defines itself as a self-regulated financial system, designed to create investment opportunities for the cryptocurrency community. It is apparently all based on something Bitconnect call the volatility software which is essentially a trading bot, that exploits Bitcoin volatility. It is unknown if any money or contracts were ever distributed through these entities.
Bitconnect, which has been accused of running
Blacklisted site:, Please leave a comment below and let us know your thoughts about Bitconnect. BitConnect is a Bitcoin investment platform and a cryptocurrency released in bitconnect ponzi 2016. In total, there are over.1 million circulating BCC tokens, each with a value of over 400 USD as of writing. And loan interest and principal was also only paid out only in BCC, meaning users would have to convert it back to bitcoin (and then if desired, USD) after the loan term was finished. The referral reward is merely the trigger that prompts investors to attract fresh blood into the fold.
"BitConnect, Alleged Crypto Ponzi Scheme, Shutters Its Lending and Exchange Services and Plunges 92". The debate regarding s legitimacy is raging, and when we say raging, we mean emotions running high on both sides of the barricades. However, soon after that news the internal exchange price and liquidity collapsed resulting in a nearly complete loss of value. You can purchase BCC with Bitcoin, and the token is useful within the BitConnect platform for lending on investments or staking in the coins proof of stake system. From an all-time high of 437, BCC is currently trading. Ponzi schemes rely on the influx of new members through recruitment to pay the dividends to existing members.
Bitconnect likely to be a ponzi
Due to BitConnects popularity, however, the value of the BitConnect token continues to rise. The skyrocketing price of the cryptocurrency cannot be ignored in this regard either. There is a website up now, which offers specifics on the ICO and the new crypto coin, and which hypes this newest attempt on the part of BitConnects creators to defraud the public some more. 9 However, Bitconnect as an entity never actually existed, so it is unclear what assets Bitconnect has (or ever had). Likely due to the strong referral bonuses for existing members when they convince others to join the platform, BitConnects user base is growing. A b Wieczner, Jen (January 17, 2018). In addition to the above, the tssbs statement also decried the fact that besides peddling unregistered securities, BitConnect failed to make its financial status clear, bitconnect ponzi also failing to deliver any kind of information on the way it plans to realize its profits. Summary Reviewer James Review Date Reviewed Item Bitconnect Author Rating Help spread the word.
People who say that while the lending program is certainly a scam, Bitconnect Coin is legit, fail to understand that the lending program is in fact one of the main engines pumping value into the cryptocurrency as explained above. Generally, you purchase BCC directly from BitConnect using Bitcoin, meaning the company behind BitConnect is, paradoxically, collecting Bitcoin in exchange for the token they created so that users could invest in their platform that invests in Bitcoin. The contact page only features an email form, which in this day and age, for an operation of this magnitude is insufficient. The purported volatility software cannot mathematically generate enough revenue off Bitcoin volatility to cover the interest given out by the Lending system. There are several problems with this model, and well take a look at all of them, closely examining every component of the above-described bitconnect ponzi equation. Some posters at bitcointalk agree that the Bitconnect business model is a pyramid scheme, but they stand by the fact that BCC is indeed legitimate. Bitconnects Background While Bitconnect seems to have spread across most of Asia, featuring local sites in Japan, India, the Philippines and a bunch of other countries, its background (corporate or personal) is essentially unknown. Many in the cryptocurrency community have openly accused Bitconnnect of running a Ponzi scheme, including Ethereum founder Vitalik Buterin. Detractors say its sole purpose to exist is to power a pump-and-dump scheme that will at one point most certainly come about.
BitConnect : Is It Legit
BCH, or Bitcoin Cash which is essentially useless now that the trading platform has shut down. In the case of BitConnect, its worth carefully considering how the platform works, where it generates returns, and who is behind the company before making an investment decision. "Alleged head of BitConnect cryptocurrency scam arrested in Dubai - ZDNet". As the industry matures, there is less and less room for shenanigans such as this, USI Tech, or other, less successful constructs of their ilk. Whether the tssbs move marks the beginning of closer scrutiny of semi-shady operations such as BitConnect, remains to be seen. BCC rose from a post ICO price.17 to an all-time high of US 463 in December 2017, it declined to.40 as of March 11, 2019. While were fully aware that the use of proper and grammatically correct English a legitimate operator does not make, it does indeed go a long way towards building that all-important initial trust. It needs to be made clear though that this success alone says nothing about whether or not Bitconnect is indeed a Ponzi, as many allege. Upon investment term completion, you will receive your capital back to take out from the Bitconnect lending platform or optionally reinvest back in lending platform to continue receiving bitconnect ponzi daily profit. For the time being, just holding BCCs seems like an irresistible proposition too. On the other hand, detractors warn that BitConnects business model does not seem entirely honest, and it could be a long scam or a variation of a ponzi scheme. Writing a proper and objective, bitconnect review is a rather difficult undertaking at this point in time, given the controversial nature of the operation.
A few months after creation, however, BitConnect implemented an ICO for its own currency to be used within the platform for investing purposes. You will receive daily profit based on your investment option. Suffice to say in this regard that from an ICO price of 1, BCC is currently trading in the neighborhood of 200. The Bitconnect Exchange, the exchange is possibly the most straightforward component of the Bitconnect ecosystem. Whats peculiar is that there are no losing days. The ICO kicked off on January 10, and it is supposed to last till February. "Bitcoin Crashes to Below 10,000 as Cryptocurrency Scams Scare Investors". BCC was launched through an IPO as it is fashionable these days and it has turned out to be surprisingly successful over the last year. After a year, youd have over 3700 thanks to compound interest off an initial 100 investment.
Investing is inherently risky and volatile, and any legitimate investment should expect to see losses and gains over time, not just gains. Bitcoin price volatility software that makes Bitcoin investment decisions on behalf of the BitConnect community. It could also face regulatory challenges. Some details about BCC: there are some.2 million BCCs circulating at the time of writing, and the total supply is some.2 million. Will people buy into this new BitConnect pitch? Other countries where is popular include India, Russia and Ukraine.
BitConnect - Is it a, ponzi, scheme?
This was the case with BitPetite, a similar investment platform that closed abruptly earlier this year, locking users out of their accounts while the leadership disappeared. Internal rate of return: A cautionary tale /The McKinsey Quarterly. All Bitconnect loans were denominated.S dollars but had to be made in BCC, the platforms native cryptocurrency. Ad The Bitconnect Referral System According to the pyramid-scheme theorists, the Referral System is in fact responsible for the payouts that Bitconnects lenders continue to receive, adding the last needed piece for the Ponzi scheme to be complete. Archived from the original on January 27, 2018. In the 5,000 to 10,000 range, the guaranteed daily interest shoots up.20 and the investment period whittles down to 179 days. Its not clear how BitConnects price volatility software functions, or if it even exists. The Demand channel is powered by the exchange (where investors will purchase BCCs, to participate in the lending part of the investment scheme). "How BitConnect pulled the biggest exit scheme in cryptocurrency". The website itself is quite unimpressive. Those simply holding BCCs will earn an interest on it, which for the first 6 months will amount to some 10 per month, for a total. In less than a year the currency went from being worth less than a dollar (with a market cap in the millions) to a all-time high of 430.00 with a market cap above.6B. The BitConnect Coin, in order to facilitate the BitConnect trading platform, the BitConnect developers created the.
We have to call this yet another red flag. Still as always it has to be said that by all accounts, Bitconnect lenders keep getting paid, and for some people, thats more than enough proof of legitimacy. This investment option involves profiting from Bitconnect trading bot and volatility software. To learn about relevant cryptocurrency news and receive scam warnings, feel free to subscribe to m! 2 3, after the platform administrators closed the earning platform on January 16 2018 and distributed users funds in BCC, confidence was lost and the value of the coin plummeted to below 1 from a previous high of nearly 500. As the administrators detailed "Bitconnect is not a company". BitConnect will likely run into trouble meeting those targets sooner rather than later. 7 14 15 Legal issues edit On January 16, 2018, Bitconnect announced it would shut down its cryptocurrency exchange and lending operation after regulators from Texas and North Carolina issued a cease and desist order against. The detractors havent stopped BitConnect from gaining a significant following. However, promises of large returns like these are usually the sign of a pyramid scheme, and youd be wise to exercise caution any time you see a program that advertises guaranteed returns. However, as users have pointed out the payouts were actually calculated as a fraction of the open and close price of Bitcoin with a cap in maximum interest.
HOW FAR, binary, options, hAS come - Finance
Those who invest more than 10,000, get the usual 40 per month deal, plus.25 guaranteed interest, and bitconnect ponzi theyll be allowed to cash out after 120 days. Securities and Exchange Commission. "Bitconnect Shut Down it's Lending Platform Officially for Good". 10 It is suspected that. The wheels are finally falling off the Bitconnect wagon Following scrutiny and a couple of warnings from regulators in North Carolina and Texas, BitConnect have effectively shut down their lending platform and exchange, yanking the floor squarely out from under their artificially. Bitconnect Carlos' Meme Is Everything Wrong With Cryptocurrency Hype". The platform said it generated returns for users using Bitconnnects trading bot and volatility trading software, which usually averaged around 1 per day. A b c Tepper, Fitz.
Alex Szweda Elliott Wave Theory With Fibonacci Forex
In many cases, companies claiming to have omniscient software are telling stories that are too good to be true. "Bitconnect, which has been accused of running a Ponzi scheme, shuts down". However, if the user base stops growing, there will no longer be enough incoming cash to pay dividends and the scheme will shut down permanently. Bccx is clearly looking to cash in on the gloom and doom currently surrounding Bitcoins shortcomings in the way of transaction fees and confirmation times. Archived from the original on Retrieved Mix. "The 20 Largest Cryptocurrencies by Market Cap". The regulator nixed a planned token sale from Bitconnect, originally scheduled for January. If youre considering it, its worth thinking twice about the experts concerns before you make your decision. Bitconnect, the lending and exchange platform that was long suspected by many in the crypto community of being a Ponzi scheme, has announced its shutting down. Archived from the original on 19 November 2017. Bitconnect does list a group of partner organizations on their website, and they have representatives that attend industry conferences. 6 7 12 However as users understood specific percentage of interest payouts were never a guarantee.