The author is an independent contributor, consultant in the field of blockchain and cryptocurrency, editor of our article "BitConnect, the largest Ponzi pyramid of all time? " .
As expected , BitConnect ended up closing its lending platform. All funds that were blocked were released and BitConnect saw its value drop sharply from $ 400 to $ 15.
According to BitConnect, this stop follows a bad press, legal attacks and denial of service attacks ... And if it was the logical consequence of their potential Ponzi pyramid that would not have resisted the last correction Bitcoin, which has lost up to 53% since December 17, 2017?
On this chart, we see that funds were injected en masse on December 26, 2017 to straighten the price of BitConnect. We are right to wonder, this contribution of liquidity did not it simply served to save this Ponzi pyramid
The collapse of Bitconnect
Most of the affiliates have removed their promotional videos on Youtube or Twitter posts. A nice attempt to hide the traces of their knowledge of the Ponzi Pyramid, and their greed complicit in this scam.
This brutal decision shows that a Ponzi scheme is not viable, even in the sphere of cryptocurrency. Obviously, the BitConnect trading bot, if it exists, has not been able to stem losses.
This story is not over, BitConnect is planning to launch BitConnectX, another cryptocurrency with no particular advantage over other cryptocurrency and it would not be surprising if the people behind BitConnect were, one day, arrested by the FBI.
BitConnect is very similar to a Ponzi scheme and these recent events strongly support the idea.
Since the excitement of BitConnect, many similar projects have been launched since mid-2017, also offering exorbitant gains by blocking your funds on a centralized platform. Thus, one can count at least 150 similar to BitConnect.
How to recognize BitConnect-like?
We will list their points in common to recognize them.
First thing in common: no information about the team! If you study all these projects on their official website or their white paper, none mention the names of the members managing the project let alone the links to their LinkedIn page to study their career path.
Studying the team is one of the key points when analyzing an ICO. Who can be crazy enough to give money to a site that does not say who it is?
For those who will argue that we do not know who is Satoshi Nakamoto, the creator of Bitcoin, we will remember that the team that manages Bitcoin is well identified.
Second common point: a lending platform .
All similar BitConnect offer a lending platform promising a daily income in dollars for a period of blocking funds.
One can compare the tables of different lending thresholds of BitConnect and other projects like LendConnect or DavorCoin, the resemblance is obvious.
That of BitConnect:
Bitconnect reward
The one from LendConnect:
Lendconnect reward
That of DavorCoin:
avorcoin reward
Third common point: the multilevel affiliation system .
Almost all these platforms offer their investors to recruit new ones. The more affiliates they recruit, the more affiliates recruit themselves and the more they are paid.
This system of affiliation is the very basis of the operation of a Ponzi scheme, making it possible to remunerate investors by exponentially increasing the number of new entrants. As soon as the number of new members no longer follows this trend, the Ponzi scheme collapses .
One can also compare the schemas of different levels of affiliation of BitConnect, LendConnect or DavorCoin, the resemblance is still striking.
That of BitConnect:
Bitconnect - affiliate system
The one from LendConnect:
Lendconnect - affiliate system
That of DavorCoin:
Davorcoin connect
All these platforms will suffer one of these issues:
Either the project will disappear before the end of the ICO (exit-scam): Bitpetite, Hexabot, CredenceCoin, ElektraCoin ...
Either the project will collapse for non respect of the roadmap: RegalCoin, HextraCoin, WesternCoin ...
Either the Ponzi Pyramid will eventually collapse as just happened to BitConnect.
Conclusion
These lending projects are therefore very dangerous and seem to only pay the participants on the back of the latest entrants.
We can only advise you to flee these projects and denounce them so that they end up being marginalized and disappear.
Also, BitConnect and its clones degrade the image and undermine the credibility of cryptocurrencies among the general public. Promoting these projects is tantamount to cutting corners if one day cryptocurrencies are to become widespread and push the current banking and financial system to evolve.
Below you will find two non-exhaustive lists that we will update regularly (if you notice an omission, do not hesitate to indicate it in the comments):
the first list of BitConnect clones that are listed on coinmarketcap.com because they can be exchanged on certain platforms, ranked according to their decreasing capitalization
The face of crypto will never be the same again!
so that means we are less azured?
Your Post Has Been Featured on @Resteemable!
Feature any Steemit post using resteemit.com!
How It Works:
1. Take Any Steemit URL
2. Erase
https://3. Type
reGet Featured Instantly – Featured Posts are voted every 2.4hrs
Join the Curation Team Here | Vote Resteemable for Witness