Warning: Anything that walks and smells like a Scam is a Scam: A Case of Bitconnect et al
In retrospect to 7 months ago, I wrote a steemit post see : Bitconnect a legit program or HYIP Scam for Bitcoin and Cryptocurrencies about the dangers of bitconnect including the dangers of falling for such Ponzi schemes -fast forward to this week, the reality is showing itself. The internet, unfortunately, is fraught with hundreds of crypto and revenue sharing, HYIP (high yield investment programs) Ponzi scams that are too good to be true-however why are they popular? Here are some few points:
Commission junkies: Bitconnect, for example, is being promoted by top YouTube’s and some top steemians because of thousands of dollars they make daily from their referral links . In fact they even advertise their links on coinmarket cap, steemit posts, face book and youtube et al signing up thousands of disciples in need of quick money and those people signing up other new people leading to chains of future losers (note that they are not committing any crime and never force any one to sign up rather greed is the motivation of all ) however:
Losers and winners: those on top just like any other Ponzi, pyramid and HYIP make the big money while new members lose all because their money sponsors those on top. This is true in HYIP Ponzi schemes like MMM , MPCA/MPA , The Ads Team et al which couldn’t pay members daily revenue and thus have to shut its doors, why?
Unrealistic business model: Any business based on referral / commission ie signing up new people to succeed and promising unrealistic returns -is a PONZI scheme and should be avoided .
According to Investopedia, a Ponzi scheme is a dishonest investing scam promising high rates of return with little risk to investors. The Ponzi scheme generates returns for older investors by acquiring new investors. This is similar to a pyramid scheme in that both are based on using new investors' funds to pay the earlier backers. Moreover, the first well known Ponzi scheme was coordinated by Charles Ponzi in 1919 –read here for more.
**Avoid too good to be true: ** any business or person promising you too good to be true return is a scammer (pls do your due dilligence) and this is true of HYIP Schemes like Bitconnect -which never last more than 2 years max . Rather face reality by joining steem, powering up your steem see my former post for details and search for the next best thing an example is Ethereum lyte (Elyte) (see link for their current bounty , join and get free elytes here: https://docs.google.com/forms/d/1FEonw5FIRlIPmUEZw1hkS2WsbZS8ZykyzuIbcYmDmEw/edit#responses and direct link to their current crowdsale : https://main.elyte.biz/?page_id=433 ) which are positively changing the lives of many people due to their solid business and corporate strategies that are based on future value of your investments.
Do you agree? Send in your comments and or suggestions. Upvote and resteem in order to send in your support.
See my former post : Warning! Cryptocurrencies ( Steem , Elyte.io, Bitcoin ) Are Not For The Faint-Hearted
Hey guys, heard about this new upcoming coin called Ethereum Lyte (ELYTE) , so far price has shot up over 2K% in just a few weeks- even as they are yet to be listed on Coin market cap (coming soon), seems like it might be a real good investment for the future. What are your thoughts?
Elyte website: https://www.elyte.biz/
Telegram : https://t.me/joinchat/E6tXj0dThqzzjVlWJRuxLw
Facebook: https://www.facebook.com/groups/208043153099723/
Twitter: https://twitter.com/EthereumLyte
Linkedin : https://www.linkedin.com/company/ethereum-lyte-elyte/
Bitcoin Talk page : https://bitcointalk.org/index.php?topic=2618851.new#new
Reddit : https://www.reddit.com/r/EthereumLyte_ELYTE/
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This is so true , If it's too good to be true then it's most likely too good to be true. The only concern is how Bitconnect was able to grow so much. I hope this sends a message to everyone that there is no easy money anywhere and you have to deeply research any project before investing.
Bitconnect was able to be successful because they gave themselves 1 year for full back payment of money ...so the business strategy will give them time to make big gains in the Ponzi scheme also giving their evangelists time to sign up newbies ...
I should have read this post exactly a month ago before I invested in Bitconnect. I may have lost something but I also learned some valuable lesson.
#myfirstcomment #newbie #ishashtagathinghere
welcome to steemit and sorry for your loss. See my older posts for tips on how to succeed here. Upped.
I will definitely check it out!
Ponzi or otherwise, Bitconnect was doing something that is opposing the logic of crypto. It's supposed to be not regulated, and here they were regulating your money as an investment.
Point
Hahahahahaha
Thank you for bringing more light to this topic. I can't tell you how many Trevon James fans I have argued with on his livestreams. Simply said, any investment that can garuantee you a return is not safe enough for you to put your money into. That being said, people probably won't listen, and this crypto ponzi cycle will continue. Regardless, beautifully written post!
I agree. The case is well known even @suppoman made a video about it . I do not blame @trevonjb because of promoting his site at least he taps to humanity greed and never forced someone to register. However knowingly hyping such HYIP scheme is morally wrong especially if you know that new signups will bleed one day.
I almost went into Bitconnect too. There were promoters as well as warners. In the end, I did not join.
Lucky you
Saw it a mile away and after watching some videos from their top spokesman I though it would be a good idea, but then it hit me, and right away realized people were about to be scammed out of all their money.
Lucky guy...thanks for sharing
Very informative especially for some of us new investors!
welcome, just do your due dilligence- always
Excellent work dear friend @ charles1 is a pity that people keep falling into this kind of thing, as my mother said of the easy things or too good to suspect and be very careful.
Thank you very much for sharing the information
I wish you a wonderful day
Thank you for checking my post and supporting it my friend. I appreciate your kindness
There are way too many exchange coins promising % of investor trading fees and referral programs on top of that for any sane person to be comfortable with how the exchanges themselves are acting. They should wonder why these companies would willingly choose to turn over a huge percentage of their long-term revenue streams, and if it's sustainable or realistic for them to operate on those low margins.
Very good point, I agree.