Hi Charlestines, thank you for a wonderful piece of research. I'm looking into ways to prove that Bitconnect was a Ponzi and would love to hear your expert opinion on this...
With the numbers of people loaning BCC tokens to the BCT bot in the last quarter of 2017, there would have had to have been far more liquidity in the BTC USD market than there was for it to trade. By Dec 2017, wouldn't the bot have had to have been trading with upwards of $100m daily? Where would it find an exchange or market to do this?
Thank you for your time and I apologise if my reasoning and knowledge is inadequate.
Dev
Hi Dev,
You are right there would have to be a lot of liquidity in the BTC USD market taken up by them. However, because they are so vague and followers are willing to defend them to the bitter end it is hard to pin them down without seeing their books. For example, when people were sending them BTC people claim that some of it was then used to trade other coins etc. Also, it is hard to know if the bot was day trading or taking longer term positions. Now that they have ended the lending I am sure you have seen the coin drop to around $10. I predict that they will try and use the coin to get more money into their new BitconnectX platform and take more money from people. As always it is hard to know if the creators had bad intentions or of they somehow actually thought they had a sustainable business model and one lie has led to another. Personally I would stay very far away from bitconnect.
Thanks. Much appreciate your reply. Personally my feeling is that all the lending platforms are basically Ponzi. Dev