BitConnect has exited the cryptocurrency market. It’s volatility software was able to guarantee up to 40% interest every month and 0.25% daily interest back for your investment if you invest over $10,010. Based on these claims, BitConnect was saying for your $10,010 investment, you will gain $25.025 per day ($750.75 every 30 days) just from the daily interest rate guarantee. Then, take into consideration their vaguely defined “proprietary software” that guarantees returns (and never have any losses in its trading algorithm, regardless of market behavior) and you’ve got yourself a major red flag.
Generally speaking, if it’s too good to be true, it probably is.
At the very center of every classic Ponzi scheme are two things: an investment with (allegedly) a remarkably high return, and a story about just why the extraordinary returns can be so easily achieved.
When any time of investment promises a guaranteed compounded monthly return (in this case, almost up to 40% return a month), you can pretty much guarantee you are in trouble.
Here are several key signs you might be in a scheme:
It’s very unfortunate that there are individuals out there who would take advantage of others but there are ways to protect yourself in the future!
These are some steps to take before you invest:
Many people learned the hard way with the recent BitConnect fraud and to help prevent that, I’ve compiled a list of what appears to be other Ponzi/Pyramid schemes that already exist in the cryptocurrency world so you can protect yourself (and your friends) from fraud:
2. Bitfinite (https://www.bitfinite.co/) — they are guaranteeing even high returns than BitConnect…
3. EthConnect (https://ethconnect.com/) — guaranteeing up to 45% return, with 0.2% daily return
4. Gold Reward (https://goldreward.io/) — now guaranteeing up to 45% PER MONTH
And the list goes on…
The ridiculous thing is…these are just the ones I’ve found through a quick Google search in relation to cryptocurrency lending platforms.
I hope this list will help some of you in the future. Protect yourselves out there in the wild west of cryptocurrency!