Bitconnect - The Biggest Ponzi Scam In Crypto
I looked into Bitconnect after seeing @craig-grant shilling it several months ago. It seemed very interesting at first, but it also seemed too good to be true. After not being able to find any good info on the trading bot or anything to substantiate the claims, I lost interest.
Recently, I've seen it promoted more so I thought I would share why I think it is clearly a scam. This is just an effort to combat the hype and help some avoid losing their money. @crypto-investor and others here on Steemit, have already pointed out some of the clear signs of a scam but it hasn't really slowed it down, so I will add what I have recently come across.
This is not proof per se, but it makes it pretty clear in my opinion.
I recently started following @bccponzi on twitter and he has pointed out that the top U.S. promoter - @craig-grant - has even admitted that the trading bot is a story!
https://twitter.com/bccponzi/status/923873036712935425
So even @craig-grant admits that the trading bot is bullshit. It's hilarious to me that he thinks the token being real and the referral program being real means anything besides the fact that it really is a scam. The trading bot is where all the profits are supposedly coming from.
If you're still not getting it, let me spell it out. If the trading bot is a story, then profits have to be coming from somewhere else. The only profits Bitconnect is actually generating are coming from people investing in their scam. To make the scam go as long and as big as possible, the referral system keeps new investment rolling in.
This means as long as people are investing and loaning Bitcoin, they will have funds to keep the scam going. People will even make some money during this time, but when it all comes tumbling down, you're investment will be lost and you will have promoted a scam that hurts the crypto community.
https://twitter.com/bccponzi/status/924179651559337984
Yep dodgy for sure. Good post.
I have a small position from a couple of months ago when I wanted to look into it. As a pure investment it is unsustainable I completely agree. There is a post somewhere (which I can’t find now) that shows that is you take out a $10,100 loan and you reinvest all earnings and interest rate remains around 1% daily, you would have around a trillion dollars within 5 years!
However, I don’t think it’s a pure ponzi. I think they have been very clever inserting the bitconnect token into the mix. It does nothing, serves no obvious purpose yet you have to buy it to invest.
You send them bitcoin. You have to convert this to bitconnect tokens to loan, yet they convert this to a dollar amount (and pay interest against this dollar amount), however their mythical trading bot is supposedly making profits from trading bitcoin!!
The bitconnect token is there to allow them to completely control the market. The token had a massive premine which they retain so they control the supply side of the market, in effect controlling the price.
I agree this will come crashing down at some point, taking a lot of people with it but I think it still has some time to run yet.
Well even the crypto world cannot be shielded from scam. Just shows that cryptos are here to stay.
Yeah I heard about this and there was a lot of mixed emotions about it some believed in it some didn't but overall it does seem too good to be true and I kind of keep my distance from those stories anyway hopefully people don't get ripped off glad to hear your idea on it
Three things:
It is a scam. I predict an exit scam in the next 2-6 months. I've never seen principle paid out. A bunch of scammers have videos of them about to get their principle withdrawn in videos but hold off from clicking on it , because they plan to "invest back" in.
Craig Grant call the bot a scam essentially.
it should be called SHITCONNECT best term yet :)
P.S
Early in my Bitcoin years I got scammed by something exactly like this ( probably the same group ) for like 9 BTC. Had a great looking website and paid out for the first few months then exited in like 9 months. Bitconnect is about at its 9th month.
Thanks for pointing this out Richard @richardcrill
This post has received a 0.63 % upvote from @drotto thanks to: @banjo.
Also, why would Craig and Trevor be ashamed? They are not crypto developers etc or experts of any kind, they are MLMers who saw big referral fees and jumped on the band wagon. They know nothing of blockchain, bitcoin or crypto in general, they pass themselves off as experts in order to gain referrals from those new to the space.
For the reasons you just mentioned. Lying to make money seems shameful to me. Does not to you?
It does to me and would to be most people but these are not your usual people, check out Craig's history. These are not crypto people gone bad, these are bad people who are opportunistically taking advantage of a perceived opportunity to con people (or rather benefit from promoting a con).
I didn't mean they had nothing to be ashamed of, I merely meant that it is incredibly unlikely that they felt anything, even if they dragged every one of their referrals under.
Ah, I see what you're saying now. I'm sure they have rationalized it in their minds that anyone that falls for it deserves to lose their money, but deep down I think they probably know its not cool to be a scammer.
I think you are giving too much credit for a hidden moral compass. I think, they consider themselves to be cool! in an organised crime kind of way! Still, it will come to an end one way or another and if it blows up badly there will be a lot of angry people who cant vent on bitconnect (as they are still anonymous). However, there are these obvious poster boys. At the least, I would expect the law to get involved.
Good points, but unless they are complete psychopaths, I do think they have a conscience that they are ignoring.
We shall see. Iam quite interested how it all ends tbh. Although I agree that it is morally wrong to knowingly promote a scam, those investing must at least question the returns. The returns advertised are the same or more than the scam I mentioned in the other reply only that paid 7% a week. It still compounded to over 3000% a year. When it goes down a lot of people will complain they have been conned but if it sounds too good to true, it probably is. Good post though. I enjoyed it.
Not sure if know of a previous bitcoin Ponzi scheme:
http://time.com/3571415/bitcoin-ponzi-scheme-trendon-shavers-bitcoin-savings-and-trust/
The guy running it (Trendon Shavers) got nearly 2 years when the authorities caught up with him!
I agree that Craig and Trevon should be ashamed because they are passing themselves as experts. Craig even started a "School" to teach people how to do Shitconnect loans.
I would have a lot more respect for them if they just were clear with everyone that they don't know anything about this technology and they aren't investigators and don't know who created Bitconnect and that it could be gone tomorrow and to invest at your own risk. Instead they act like it is a legit system and act like they are inspirational business men. When Trevon made the video showing off his new car and giving success advice I just shook my head. Ridiculous!
I also posted a Shitconnect post about how it can't be stopped. Until they exit scam of course.
Congratulations @richardcrill! You have received a personal award!
Click on the badge to view your own Board of Honor on SteemitBoard.
This video is enough proof