BitConnect a Pyramid Scheme? Threatened With Closure
The British authority "Registrar of Companies" published a document the 14th of November 2017, threatening BitConnect LTD to close the company within a period of 2 months, insofar as the company can not provide publicly named evidence. There are no information about the reasons for the threat. So it is not clear if the company was contacted for lack of mandatory information such as company accounts or the like or maybe even because of the business model pyramid scheme.
In any event, the document states that if no appropriate evidence is presented within two months, the company will be dissolved and all assets confiscated.
Source: https://beta.companieshouse.gov.uk
It is also a fact that two new companies were founded in September under the name BitConnect. How and if BitConnect LTD is in contact with these two new companies is not known to us.
The rapid increase of BitConnect - sharp criticism since the beginning
The cryptocurrency BitConnect (BCC) still had a value of less than one euro in March of this year and rose to more than 250 euros at the beginning of November. However, this rapid increase brought with it numerous criticisms.
This does not seem surprising, since BitConnect actually seems to have only one topic: The promised increase in value of BitConnect tokens for advertising new investors. The aim of the investor platform always seems to attract new investors. New entrants who have joined later, ie at a lower level, receive less reward / interest than higher level investors.
Even Ethereum founder Vitalik Buterin commented on BCC about four weeks ago on Twitter, saying he considers BitConnect a pyramid scheme:
After this tweet spread on the Internet, the price fell slightly to about 213 euros. Due to the rising Bitcoin price, however, BCC seems to be on the upswing again. The price is currently over 238 Euro per Coin.
For all BitConnect investors, this news should be a warning from our point of view. If BitConnect turns out to be a Ponzi scheme, the system could collapse overnight as if it were a classic fast-paced system as soon as new users can not be acquired. In a collapse then there is a risk that all investors lose their money.
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Bitconnect's operating principle sounds like a classic pyramid scam scheme, smh. :/ I hope bad apples like Bitconnect won't spoil the future of the legitimate cryptos.
Also [Insert obligatory bitttcccconnneeeeeeek vid].
Thanks for the info @tradewonk
My pleasure!
It is inevitable that there will be a lot of questionable activity considering the rate at which the crypto market is growing. This will require some type of policing authority.
Yes but for me Bitconnect is obviously a scam..
You all should do more research on these topics instead of blindly listening to people just because you think they have reputation. It's a ponzi just because it pays 1% a day? Where is the logic in that. Also, nearly every economic and financial institute and commercial business is a "ponzi" or "pyramid". Please do your research, instead of fear mongering.
15 minutes on youtube and you can find plenty of videos providing proof that British authorities will not be taking over and shutting down bitconnect. I bet the author of this post is buying as many Bitconnect coins as he can as the price is currently being manipulated and held down with large volume buy orders at low bids. Meanwhile a bunch of fraudulent articles like this keep popping up to help create fear.
Feel free to follow me and check out my channel, Myself and others are posting INFORMATION, and letting the people decide for themselves. You can see evidence of the price being manipulated in my latest video.
Yeah I remember seeing something being posted a couple weeks ago where they were talking about this exact same thing. The only problem was it was information that was just coming to light over some documents that were filed months ago. I saw a number of youtubers talking about this. Like I mentioned below, Bitconnect doesn't say anywhere you're going to get 1% a day. Heck there are days you don't get anything. Everything they do is based on the value of Bitcoin and since it is just going up in value, people are making more money.
accourding to your blog it seems ponzi because there is great rise in bitconnect...thanks for such information ...very good blog...keep posting
Good News crypto
@tradewonk
Trevon James (bit connect promoter) just got "hacked" for 111 bitcoin, now Bit connect may close. hmmmm
Actually a number of those main youtubers got hacked and lost hundreds of thousands of dollars. He was just one of the most well known names that was hacked.
Ok I guess my question is have you seen any reports of people losing money on bitconnect? I have seen people making plenty of money on bitconnect without even having referrals. They don't promise 1% anywhere that I have seen. Do some of you guys not trust it because you can't believe it can be that easy to earn money? I mean with bitcoin going up and up in value all they are doing is investing it so how is it so hard to think they are doing anything wrong? Last I checked people invest in the stock market and make money. This is just a different market and a different way to make money. People fear that which they don't understand.
People who have lost money on the platform are rare. It happens though.
Alot of the people who lost money at the time were impatient and weren't investing and reinvesting like everybody was saying to. That site is no longer doing it so I guess it doesn't matter anymore lol.
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