Many of you have already probably heard about the biggest scam in the cryptocurrency world whether it is from the news media or from even memes. So, what was the whole concept of bitconnect about and how did they manage to pull off the biggest scam in the cryptocurrency world?
For starters, when you open up the website, and I am talking about way before they pulled off the Ponzi scheme, you can see many grammatical errors and bad English, this shows unprofessionalism Most legit businesses have at least one employee to spell check everything before putting it on the website, if the developers are not native English speakers. Also, they were too good to be true; “For 10,000$+, they claim that you get a guaranteed 0.25% daily interest, which means 91.25% guaranteed return per year. Not only that, but they claim that you get an extra up to 480% per year. Add to that the referral system, which pays your referral 7% of every investment or reinvestment you make, and his referral gets 3%, and his referral gets 1% and so on, until the 11th referral, adding up to more than 12%. So if you invest the same amount three times a year, they would pay your referrals 36%+ of your initial investment.
This all adds up to a guaranteed 127.25%+ guaranteed, risk-free interest per year, not even counting reinvesting your interest. There is no legitimate business on Earth that will be able to pay this interest rate to its customers risk-free, plus another up to 480%. There is also no trading bot that can guarantee profits”.
So what happened afterward, what is this Ponzi scheme that they pulled off,
Ponzi scheme is basically where someone promises investors very high rates with minimum risks, and once they convince people to invest in their project, they pay the people by generating returns for older investors by acquiring new investors. So after receiving the maximum amount of investment that they could have had, the company shut down, and thousands of people lost all their capitals and savings.
Till’ this day, the bitconnect scheme is the biggest the cryptocurrency community has ever seen, and it is a disgrace not only to the technology but also to humanity, for that reason, many families lost everything they had. At this point all we can to make the best out of that situation and learn from our past mistakes and invest in cryptocurrencies that actually make the world a better place.
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(52), T., (68), L., (58), Z., (78), A., (44), W., (61), S., . . . (12), P. (n.d.). The BitConnect scam exposed — Steemit. Retrieved from https://steemit.com/scam/@thegrinder/the-bitconnect-scam-exposed
Bitconnect’s Ponzi Scheme: the biggest scam in the cryptocurrency world was originally published in Data Driven Investor on Medium, where people are continuing the conversation by highlighting and responding to this story.