Bitconnect is at fault, but not for being a Ponzi scheme. They should be punished for what they did. It wasn't a Ponzi scheme because a Ponzi scheme would imply that they are paying supposed "gains" to investors with new investor's money.
The real fault is that they guaranteed the principle of the loans against the US dollar. This was their undoing. During the DDOS attack, gains were made and loans were maturing. The problem was that their value was guaranteed to stay locked against the US dollar until which time the investor took those profits/principles and convert them at the current market price. The problem was no-one could recover them at the current market price. The market was in the midst of one of the worst corrections it has ever had. These payouts were stacking up and becoming more and more expensive to pay.
Imagine if you owed me 50 dollars and I get to choose when you pay me, but you must pay me in bitcoin. You only have so much bitcoin and I say to pay me at the moment the value of bitcoin is driven down drastically. You only have so much bitcoin to begin with. With that system multiplied with many investors, you would run out of bitcoin.
With all these payouts stacking up and the market plummeting, it got too expensive to cover the cost of these payouts. In addition, fear, bad media, cease and desist orders scared off new and returning investors. For 5 days, there were no new customers which magnified the problem.
Ultimately, they should of had some serious capital in reserve to cover the guarantee to hold payouts against the US dollar which was their fatal flaw. They were making money hand-over-fist even with the bonus program, yet they must have been spending it like there was no end. They literally didn't have enough funds to weather 5 days. There was no reserve to protect the investors. For that, they should be nailed to the cross.
Disagree. It was a ponzi scheme start to finish.
If you lost money, your only course of action is to:
I'm not trying to laugh at you. Trust me, I've been there too.
Bitconnect is a first time pioneer. Don't you think at some point things are gonna go south? Nothing is perfect, shit happens, and people lose money investments. Bitconnect won't be the only lending platform, I'm sure competitors are taking notes and have their own plans to do it better than Bitconnect.
It is due to fear, bad media, cease and desist orders, etc. Stop yelling at Bitconnect! Bitconnect is a great idea itself. If Bitconnect is a ponzi, Bitcoin is a ponzi, too. People need to have faith in digitalcurrency! It is all about faith!
I disagree. A scam on blockchain doesn't make it legit. Ponzi is a ponzi whether its on a blockchain or not.
Bitconnect was a scam, plain and simple. I'd consider suing them for ponzi if I'd lost a shit ton of money.
If you would like to explain what a Ponzi is , in your eyes, I will point out how Bitconnect doesn't fit that description at all.. sadly misinformed people, who have never looked at how Bitconnect funded itself, are part of the reason, they had to shut the doors.. but They did so before they ran out of money, so Ponzi scheme it wasn't... Bitconnect will be back as an exchange, and those who hold their coins will gain a lot if not all of their money back. and who knows even profits? time to snap up some cheap BCC coins..
Wow so way off base. First off, the coins are not sustainable as there is nothing driving them. Bitconnect will need new investors to be sustainable and who will have any confidence in them? Yes they are a classic Ponzi. Ponzis always have good intentions, Ponzis have incredible returns like Bitconnect. Ponzis thrive under good market conditions because new money keeps flowing in, like Bitconnect, Ponzis, have no real logic or numbers behind them, they feed off of good economic opportunities, such as the price of Bitcoin going up. The only way into Bitconnect was by investing with Bitcoin. As long as Bitcoin kept going up, they were sustainable. As soon as the market crashed, Bitconnect had nothing, no trading bot, no true sustainability so they closed their doors. If they were not a Ponzi, they would have paid back in fiat or Bitcoin, but they chose to pay in BCC, a crypto they knew was worthless. Typical Ponzi. T
Thank you. I guess it will take some time for some to just accept the facts. Until then "bitconnect wasn't a ponzi even when they promised huge interests for lenders that were not sustainable, like at all, and then they ran off with everyones btc"
I guess these defenders are part of the team, or close to it and just don't want people to get ideas like sueing. The main chiefs deserve jail time. Why else defend a obvious scam? What a world we live in.
Hmm, would you agree that it was scam if not ponzi then? Just wondering what is your stance on correct terminology here. Or would criminal activity be the best fit?
Um no
guys i loved bitconnect but i loss more then $400. it just make me said
We knew the end of BitConnect was inevitable and it was going to come to a sad goodbye. Therefore, people who invested in their platform, like myself, had to accept the loss of the money they have risked. I said goodbye to my money soon as I deposited into their account. These schemes don’t last very long and yes you could make money if you invested with them right at the start. The problem is people’s greed where nothing is enough. Everyone wanted to reinvest their money to grow their revenue exponentially. When the market started taking a correction lots of people tried to withdraw their money at the same time out of panic and that pretty much put a dot at the end of the line. BitConnect was not able to pay out all that cash at the same time so they offered to refund everyone with their currency that had no value to it at all. Of course the price of BCC crashed like a burning plane but that didn’t cost BitConnect a dime cause they were giving you something that had no intrinsic value. So they really didn’t loose anything and still looked somewhat fair in investors eyes. People say, well at least they didn’t just disappear when in fact they did but the smart way.
Its not only Bitconnect's Fault, Everyone who followed a ponzi/ Pyramid without even thinking sensible needs to be blamed as well. If you want to fall in the hole knowing its a 'shithole' cant scream foul. Bitconnect never made their managment public, nobody knows who was running that company. No Roadmap whatsoever. People wanted to gain quick money. Rate of interset of 1% per day is too lucrative to passon. Some made money were all at the Top... who knew this was coming.. and alll at the bottom are blaming bitconnect on anywhere possible.
Bitconeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeact 🤣😂 bbbitconeeeeeeeeeeeeeeeeeeeeect😂🤣
They said they had ddos attack for days among other reasons.They caused their own lies and cover up.They obviously had a plan that we didnt know about.They got theirs and took ours.We got slaughtered.I lost 40 grand 2 days before they closed.I read everything there was to read and understand the consequences of a market.I signed up on a lending platform with a capital release date.It wasn't just buying coins.There was no warning no rhyme or reason just bad business.I own several coins but they are not lended in a system.There is a difference..They should have opened a gofundme or something to build their business.If I wanted to hold coins I would have held these coins.Im not gonna go play with them in my wallet.That's not what I signed up for.Plain and simple.
TL; DR -
Bitconnect in a nutshell:
Thank you for your thoughts. I agree whole-heartily. It was probably a tough decision, but one that gave more support to them then to the whole group.
Very good understanding and presentation of what happened. I hope they do the right thing and give back our $