Blockchain is Beautiful, but Don't Be Stupid...like Investing in BitConnect!
Recently, I wrote a column for CrushTheStreet.com entitled, "BitConnect Ponzi Scheme Proves You Can’t Be Stupid in the Blockchain." It, of course, was inspired by the dramatic rise, and even more dramatic collapse of BitConnect, the ponzi scheme that gave cryptocurrency markets a bad name.
Those of us who are true adherents of the blockchain and the cryptocurrency (bitcoin and altcoin) story understand that BitConnect was not a true blockchain investment. Rather, it used the bitcoin name as a marketing device to sell a ponzi investing scheme.
BitConnect only proves that you cannot be stupid in the blockchain. No matter how great an investing opportunity may sound, you must research the fundamentals. For BitConnect, there were no fundamentals, other than a supposed trading algorithm that produced massive profits from which investors received, on average, a 1% daily payout.
In hindsight for the scammed, the red flag was obvious!
Guaranteed daily payouts, by their nature, sound scammy, and it was. Nobody, not even an "advanced trading algorithm," can predict the markets with enough accuracy and profitability to guarantee daily payouts.
But worse yet was the lockout period. If you invested in BitConnect, your money was on lockdown, depending on how much money you invested. But even investing the highest amount of money still led to a lockdown period of at least two months.
That was the sign right there!
Rather than a trading algorithm, new investor money was used to pay off old investors. This was the classic definition of an investing scam, a Ponzi scheme!
Honestly, you don't have to dive into the granularity. If any investing platform offers you guaranteed anything, you run. You don't question it, or play around with it...you run.
Otherwise, you truly risk losing it all!
Here's the full URL for my Crush The Street article -- https://crushthestreet.com/articles/breaking-news/bitconnect-ponzi-scheme-proves-cant-stupid-blockchain
Remember, if it's not Bullish Money, it's Bull Sh*t!
BitConnect is not a true blockchain but a ponzi investment scheme, noted. We need to be on guard. Thanks for sharing
Thanks for reading! :)
Nice article. Project like Bitconnect demean the whole crypto space. Many newcomers have been victim of this fraud. They did market it so well that it did spread like a virus. Don't want to name the Youtuber but his ads were annoying and interfering each and every crypto youtube video. Glad the show is over for them.
Thanks for sharing it with the community. Keep alarming...
Yup, the scam has been exposed, but unfortunately, we still have plenty of crypto scams around. Hopefully, the BitConnect lesson was broadly learned.
One guy answered a comment of mine by saying Bitconnect wasn't a scam because many people had gotten rich off of it, what he failed to mention is the many more who lost money, I think that defines a Ponzi, the creators and the first guys in make money, the rest can be happy if they break even, most will lose.
Yup, the classic definition of a Ponzi -- new investor money goes to pay off old investors.
walks like a duck...
quacks like a duck...sh*ts like a duck...
haha. exactly.
One coin was busted also recently.
https://news.bitcoin.com/onecoin-offices-raided-in-sofia-servers-shut-down/
Stay sharp and always DYOR people.
Cheers!
Absolutely do your own research and due diligence...these "platforms" are nothing more than cleverly marketed scams.
A very respected blogger admitted to losing $2K, which makes it clear that even the 'experts' don't get it right 100%.
This admission makes my $20. novice fail, while diy-learning an exchange, seem as pennies.
To lose to a ‘venture’ that was so charged with YT advertising, just days/hours before notification that it was a ‘scam’, whose time was up, makes it ginormously clear why individuals HAVE to do their own due diligence; and, not be sleeping ‘sheep’, forgetting most ‘ads’ are created by actors.
Equally important, as I learned the hard way, is don't trust diy posts at face value; especially those where money transactions are involved. Before trading the actual amount you want to invest on exchanges, i.e. Bittrex, et al, be sure to do a trial run of .01 or so, to be sure the method works. Once you flush your money into the pool; it takes more than...well you get the gist.
Perhaps, the wisest advice I could offer is trusting that Inner Knowing, I refer to as the Holy Spirit. If you get this gnawing that something's just not right, trust this Knowing. Often, we get high on the hype, ignoring this Gem.
Speaking of, there's a crypto that I just can't jump on board with, in spite of all the bells and whistles surrounding it. At some point, I will read something that shows its growth potential; but, for now it's just a preparation for something huge. A lot of the experts are singing its grand future; and, for this reason I will buy with caution. I admit that it has grown; but, it's very saturated in dispersal. I won't name the coin; but, it's probably not hard to guess.
Great post for raising awareness.
Peace.
Thank you so much! I wouldn't feel bad about losing the $20...everybody makes mistakes. I'd consider the $20 to be the best (and cheapest) investing education ever, since you'll likely never repeat the mistake!
Oh, if only that was truth...It was two separate $10. buys...lol...
Thanks for the encouragement!
Peace.