8 min read 

Among the most exciting financial innovations of our generation, blockchain technology is a cutting edge, emerging revolution that’s swept across the globe and ignited the cryptocurrency passions of millions of entrepreneurial investors and traders seeking to maximize their financial savvy inside an entirely unregulated market.

With bitcoin being arguably the most traded and certainly the most accessible of all cryptocurrencies, the recent emergence of BitConnect as one of the hottest trading ventures available today has drawn a lot of heat but, we believe, not quite enough light to its more than somewhat shadowy system.

So What Exactly is BitConnect?

The basics are that it’s an open sourced trading platform which claims to provide multiple investment opportunities to its investors, with a guaranteed RoI that is mind blowingly sexy to neophyte investors – but it’s also a RoI that to experienced, veteran traders may seem much more shady than sexy.

The BitConnect platform has also recently established and vigorously promotes a very aggressive affiliate/referral program that clearly pushes every investor to pull in more investors, using the carrot-and-stick method of paid commissions for each new investor they can get to join and, of course, also chip in with their cold cash for initial investment.

Almost all of this affiliate/referral promotion is organically created through social media channels and as a direct result is, as of this writing, an absolute viral sensation you’ve likely already encountered in some online form (spam mail, Instagram, Facebook, YouTube, et al).

With its online affiliates lucrative claims of massive, regular, ongoing returns on minimal investments—which we find suspect at best–we felt it was time to drill down into some of BitConnect’s shaky foundations and then take a closer look.

Here’s What We Found

BitConnect’s Primary Selling Point is its Trading Bot Tech 

Good News: BitConnect claims to have designed a bot whose function is to take advantage of the daily fluctuating price of bitcoin, rapidly trading inside the lending/borrowing margins to gain a daily RoI of at least 1% (theoretically).

Bad News: If this is correct then this rather unrealistically translates to annual returns of 365% per Year an absolutely unprecedented amount in the history of traditional trading (outside of past Ponzi schemes). Since any experienced cryptocurrency trader would be ecstatic with an annual RoI of 25-30%, the RoI claims of BitConnect’s affiliates are a massive red flag.

Worse News: Any and all information regarding the details of their trading bot is highly secretive but, in our opinion, if such a trading bot actually existed the technology could be successfully applied to any traditional financial market for equivalent returns. We have, therefore, either a golden goose laying endless eggs, or we have a pyramid scheme designed to pile up initial investment money and then vanish with the cash in the dark of the night.

Their Referral Program Guarantees Paid Commissions for All New Lenders/Affiliates Who Join/Invest

Good News: Their site promises that all affiliate commissions will be, “paid instantly to your BitConnect wallet“.

Bad News: Commission scale is based on the “tier you have achieved” inside their tri-level system of older and newer lenders/investors. This tier-based scale should be highly suspicious to any potential investors.

Worse News: BitConnect’s site explicitly states, Bitconnect reserves the right to disable the affiliate program and/or any given affiliate user any time”. This does not inspire confidence in this decidedly shady “referral” program and practically screams Ponzi scheme.

The Affiliate Base/Demographic is Massive and Expanding

Good News: It is near impossible to find an affiliate who does NOT claim to have already reaped huge profits from their initial investments.

Bad News: The affiliate base/demo is absolutely loaded to overflowing with get-rich-quick promises from exceptionally shady characters urging you to climb onboard with your cash.

Worse News: Check this video and then you tell us if you would trust any of this grifters with even the loose change in your pocket

Our bottom line on BitConnect is that this is not an investment that you need to make right now.

The red flags are right there for anyone to see and the real danger of every Ponzi/Pyramid is that it’s almost impossible to detect in the first year because the cashflow is still trending upwards and the earliest investors are actually boasting of some small returns. But in every historical example – from “match king” Ivan Krueger to Bernie Madoff – the scam successfully raided its investors and was never detected until after its collapse. Of course this meant devastating, irretrievable losses to the scheme’s gullible base of investors while the top tier absconded with the money.

In the case of BitConnect, this could possibly be a revolutionary new tech trading method that will be a cryptocurrency game changer, and its affiliate’s claims could possibly be factual, but we are definitely NOT betting on it. And we would never suggest to anyone that they take the BitConnect gamble either.

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