THE DOWNFALL OF ALL LENDING PLATFORMS HAS BEGUN!

in #cryptocurrency6 years ago (edited)

THE DOWNFALL OF ALL LENDING-PLATFORMS HAS BEGUN.

Do not invest and keep your capital safe!!!

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Dear readers,

In the following article I'm going to explain you why the downfall of all lending platforms has begun and not a single lending-platform will survive in the long-term.

As probably most of you already heard Bitconnect has shutdown its lending platform resulting in millions of people losing their money.

In a statement Bitconnect made yesterday they explained the shutdown of their lending platform and exchange. Here is a short resume of their explanation:

  • The continuous bad press has made community members uneasy and created a lack of confidence in the platform.
  • They received two cease & desist-orders which have become a hindrance for the legal continuation of the platform.
  • Outside forces have performed DDos attacks on platform several times and have made it clear that these will continue. These interruptions in service have made the platform unstable and have created more panic inside the community.

Now the one and only positive thing we can still say about Bitconnect, is that they did pay all active loans back;
the only problem is they paid our loans back in BitconnectTokens, not in Bitcoin.
They paid our loans back at 363.62 USD per token, this payback was already a steal as the current price of the BitconnectToken was only around 200$ at that time; In particular this means we didn't receive as much BCC tokens as we should have.

The main problem is that the price of the BCC Token immediately tanked after this news; The BCC-tokens lost 80% value in a few hours. So yes: Investors lost their money.
If Bitconnect paid their users loans back in Bitcoin; the price-drop would not be this significant and people would really have their money back.

We can definitely conclude Bitconnect EXIT SCAMMED!
The only difference with other scams is they did it with a few sweet last words.

WHY OTHER LENDING PLATFORMS WON'T SUCCEED?

Now why won't other platforms succeed? Well there are a few very simple reasons:

First of all Bitconnect was the primary example for all other lending-platforms that came out after: Bitconnect can be seen as the grand ambassador for all these platforms and it was Bitconnect that made everyone believe in the general sustainability of these platforms.

NOW THAT BITCONNECT IS A PROVEN SCAM --> ALL THIS CREDIBILITY IS LOST!

First reason:

I hope you people understand that one of the biggest reasons these lending platforms succeed is the reinvestment-possibility, reinvesting was often called compounding and it was a really good way of manipulating investors to lock in their lending interests on top of their capital, promising bigger returns in the longterm.
When people lock in their interests, the lending platform does not have to pay-out their investors, which results in more capital locked in the platform and improved sustainability.

NOW THAT BITCONNECT IS GONE --> MOST SANE PEOPLE WILL STOP REINVESTING AND TAKE OUT THEIR LENDING PROFITS.

Second reason:

  1. Also the lending platforms, which are now a fresh proven pyramid scheme are very dependent on new investors making a loan; the Bitconnect shutdown scam is worldnews and the amount of people starting new loans in other platforms will go down very, very fast. Again all credibility is lost, no new investors = dead platform.

These 2 reasons prove to me that Lending platforms are officially dead now!
I don't see any other platform succeeding in the longterm and no platform will exist as long as Bitconnect.

The only way a lending platform will succeed now is if the platform in particular can prove its sustainability, I don't see this happening as Pyramid Schemes can't prove to be sustainable!

IMO all lending-platforms are doomed to fail now: RIP Davor, RIP Falcon, RIP Hextra, RIP Martcoin, RIP all others...

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IMPORTANT ADVICE:
DONT START NEW LOANS ON LENDING PLATFORMS AND TAKE OUT YOUR INTERESTS IF YOU DID START A LOAN!

Spread the word and warn other investors. Please upvote and follow my channel for more interesting content.

Feel free to start a discussion:
Do you agree with my statements and/or do you think the Bitconnect SCAM will damage the reputation of cryptocurrencies in general?

Thank you for reading.

Cheers,
MAXIDIGI

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Great article. I figured the whole Bitconnect scam angle but totally missed the reason why their BCC payout was so high. It was that they could give us less of their own coin and so that they could buy back their own coin after it crashed. Very sneaky Bitconnect.

I'm not entirely sure whether Bitconnect has bought back their own coins after the crash.
I feel there is a greater chance they ran away with our Bitcoins and are now somewhere in The Bahamas spending our money... RIP!

Still a lot of bagholders in BCC though, I sincerely doubt this coin will ever gain its value back now that its reputation is destroyed.

What do you think?

I think the game was to scam, give loan money back in BCC, drop BCC value, buy back the coin and regain some confidence through BitconnectX, sell BCC again and it will level out at it's true value over time

Interesting vision, I'm curious to see how this all plays out.
Again though I do have to say I have absolutely no faith in BitconnectX, I think this ICO only served as a last effort to try and raise enough money and maybe improve the sustainabilty of Bitconnect lending for some time. I don't know if you know this but the BCCX ICO price was going to be only 5$, last-minute they changed the price to 50$...
Shady stuff!

I also see BCCX crashing horribly when it hits the exchange because last I heard people could trade their BCC in BCCX exchange for a value of 150$ per BCC, I don't know if this is still the case but if it is with the current price of less than 10$ per BCC... You already know what will happen to BCCX when people can sell them. RIP!

I guess time will tell.

It was a well thought out scam for what it is.

Indeed. Anyway I will never fall for another ponzi scheme again, Bitconnect was an eye-opener for me!

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