It's only a matter of time before the regulators start going after Bitconnect.
Unless Bitconnect can prove they actually have a trading bot and that the earnings being distributed to existing participants are not coming from new money, I doubt they would be able to escape the authorities.
yeah i guess, if they prove that, then we can all go in :P
Hahaha, I'll be the first one to pile in, but I have a sneaking suspicion they have no trading bot.
They don't need a trading bot. They control the currency (BCC). They own 90% due to premine so they effectively control the price. They don't need new money to pay out, they can just manipulate the price of BCC. I don't think its been necessary yet as BTC has gone up for past 12 months but if we enter a bear market watch out.