How do they make money off it though? If it's by referring more people, that's one of the signs it's an MLM of some sort. That's what concerns me.
You are viewing a single comment's thread from:
How do they make money off it though? If it's by referring more people, that's one of the signs it's an MLM of some sort. That's what concerns me.
In my part of the world, MLM ponzis sell like hotcakes.. so not surprised if plenty are into such a "business"
On Bitconnect you earn money through "lending" out Bitcoin and their magic "tradingbot". Youtube earn from referrals because they earn a percentage on lending of every user that has signed up with their code on the platform - he becomes the classic downline of the referee. Bitconnect might be the most consistent and long-term sustainable Ponzi scheme, since you when you give your bitcoin to Bitconnect you get a 1% daily return, but you would have earned more by just hodling your Bitcoin. That way Bitconnect is able to "payout" profit to people as more and more users sign up. I am very sure that they have a fund-lock system in place that prevents immediate withdrawal which is a characteristic sign of every Ponzi scheme. Note, that the top youtubers profiting from this have invested 10% of their Bitconnect funds - 90% are the funds of their Downlines at work.
Anyway, thanks to bringing this up and helping prevent new users fall for this trap.
My bullshit instincts are rarely wrong. Ethan Vanderbuilt is another good resource for help identifying stuff like this and I'm eager to read his thoughts about it.
Thank you for the tip, I will check him out!