I recently ran across Bitconnect today for the first time. Looking at their meteoric rise prompted me to investigate. It looks like everyone is making money. Everyone loves it. There is a network effect and more and more people are jumping in. While this looks great, there are some
major fundamental problems:
Who is Satao Nakamoto? What a name, just like Satoshi Nakamoto, you'll never know who he truly is. He is apparently the lead developer of this platform, yet we have next to nothing on him. Not even a LinkedIn profile or even a photo of him on his Facebook. Who are the other developers?
Where is the whitepaper? Is it so proprietary that it can't be released?
Where is the money everyone is making coming from? Supposedly you make money by staking it with a "volatility bot" that makes money through some sort of algorithmic trading program. Where is the volatility program arbitraging its earnings from? What exchange is it trading on? The money everyone is making has to come from somewhere and it's coming from the new investors.
How is there never a loss? You make money every single day, there's never a day where you lose money. This is literally impossible. If it sounds too good to be true, it is.
Why do they need their own coin? You don't need a coin to run a trading bot. Is it so you could attract new buyers with a rising price?
If you are judging other people's or your own gains as proof of it's legitimacy, you don't even know what a ponzi scheme is.
I use to watch the show American Greed on CNBC and there were many ponzi schemes just like this one that stole millions or even billions by promising very high risk free returns and that is exactly what this is. It has a very well put together and functional website, which only reinforces the network effect and appearance of authenticity. This is a very well put together ponzi, one of the best I've ever seen.
With all these ICOs going on and no one paying attention, it's easy for something like this to roll on. The thing about ponzis is they survive as long as more and more people are willing to put money into it. Bernie Madoff ran a billions of dollar ponzi for years without getting caught.
Please correct me if I'm saying something wrong. Otherwise, get your money out!
Here's some further research:
https://steemit.com/scam/@thegrinder/the-bitconnect-scam-exposedhttps://www.facebook.com/profile.php?id=100010892495970https://en.wikipedia.org/wiki/Bernard_Madoffhttps://en.wikipedia.org/wiki/Ponzi_schemehttp://www.hyipscope.org/?a=details&lid=6844 - "40% a month with no risk".....come on, now you're just admitting you're a ponzi
It's a massive ponzi. I started a new thread on this.
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