I was scrolling around the bounties section looking for a signature campaign when I found
this project . Here's an introduction to the project and what it looks to do in the industry -
IntroductionCoinect is a new trading bot/tool/system that is able to implement on popular exchanges (binance, kucoin, bittrex, bitfinex) and uses AI to minimize a loss while making favorable trades that will profit. They claim that in 1 month, they are able to make a 48% profit, which sounds incredibly similar to
popular ponzi schemes .
AI System for guaranteed profitCoinect claims that they are able to implement a trading system that guarantees in average about 20-50% profit. From their
whitepaper, they claim that they will have a system that will cover ~20 exchanges and will work in a way which is as follows -
An arbitrage situation on exchanges A and B is detected. At present, BTC (Bitcoin) = 3
BCH (Bitcoin Cash) on exchange A, while BTC=2.9 BCH on exchange B.
In order to benefit from the situation, it is necessary to sell our available 1 BTC (Bitcoin)
for 3 BCH (Bitcoin Cash) on exchange A.
Simultaneously, it is necessary to carry out an inverse operation on exchange B, buying
1 BTC for our available BCH at the lower cost of 1 BTC=2.9 BCH.
The result of this arbitrage is the possession of the original set of instruments (1 BTC +
2.9 BCH) as well as an invested profit of 0.1 BCH, capitalizing the investment.
A further conversion of the profit at the maximum rate of BCH_USD, in fact, creates an
arbitrage chain from 2 transactions.
They claim that they are able to calculate this, but how would this work from 20 exchanges? On popular exchanges like binance, the price of something is changing constantly and since you are making small trades and arbitraging, this might go wrong a lot of times. (This part is a bit messy, I am not very well versed in trading/arbitraging, if anyone has any better comments/analysis, feel free to comment).
False Advertising/SloppinessThe entire website is very sloppily made and the details are often wrong, for example -
At first glance, it shows the profit is around 40-45% a month
![](https://ip.bitcointalk.org/?u=https%3A%2F%2Fi.imgur.com%2FYlIVQf0.png&t=665&c=Z1aOdnUHSFHAGA)
Then in the section next to that, the text reads 20-50% profit a month.
![](https://ip.bitcointalk.org/?u=https%3A%2F%2Fi.imgur.com%2FUjxecbH.png&t=665&c=5EPQp_r5FRznqw)
Then if you try forecast your profit, it shows 48%?
![](https://ip.bitcointalk.org/?u=https%3A%2F%2Fi.imgur.com%2Fgqx5osJ.png&t=665&c=3Bm8AWemWe7paw)
You are also unable to change the slider from 1 month, it seems like that parts broken.
They also make it seem like they are going to be listed on popular exchanges, or at least know them and are connected with them shown in this picture -
![](https://ip.bitcointalk.org/?u=https%3A%2F%2Fi.imgur.com%2FG9aJ0Vy.png&t=665&c=6ONpZ3s72dLZag)
I am unsure about other exchanges, but binance doesn't announce partnerships before the ico ends, so definitely dodgy at least. They are trying to mislead dumb investors here.
No experienceWhen you are looking to make a financial asset platform, especially if it is ai involved, you better have a lot of industry relationships and experience. This is the total opposite of the Coinect team, and the linkdelin profiles they provide are incredibly barren and they either have no experience or have some experience with some unknown company. They should have proven performance, social media presence, industry connections, instead, we are greeted with some possibly fake accounts that look like they were made 1 month ago.
The CEO/Team lead - Dominic Hall
The CEO has made a total of 7 connections on linkedlin and has 1 past job at GFT, which I can't find anywhere. Definetly not fit to be running a million dollar finanical asset platform. I think these 7 connections are the fellow team members in coinect, as each of them have 7 connections each.
![Embarrassed](https://bitcointalk.org/Smileys/default/embarrassed.gif)
ConclusionDoes not look like a very trustable ICO. I'd love to hear your thoughts though, thanks!