No.

[Fox]

No.

 

We're courts not police.

But explain how this is a scam. I've barely looked into it but it appears they're just printing more bitconnect tokens and giving it to people staking on their coin? If so that isn't a scam, they're just going to devalue their coin over time while delivering the promised return in actual units.

 

[John Devola]

We're courts not police.

But explain how this is a scam. I've barely looked into it but it appears they're just printing more bitconnect tokens and giving it to people staking on their coin? If so that isn't a scam, they're just going to devalue their coin over time while delivering the promised return in actual units.

They promise 100% returns over 120 days. They return this currently because they pump and dump coins (they say they have their own trading bot), as well as invest mostly in bigger coins such as BTC which have been doubling at a faster rate than every 120 days, giving them capital to pay out. They say they are backed by their currency, 1m bcc, which is artificially inflated but is not even close enough to pay out if they were to default.

Basically if there is ever a major correction, or currencies fail to double before 120 days, they will not be able to return customer funds.

 

They promise 100% returns over 120 days. They return this currently because they pump and dump coins (they say they have their own trading bot), as well as invest mostly in bigger coins such as BTC which have been doubling at a faster rate than every 120 days, giving them capital to pay out. They say they are backed by their currency, 1m bcc, which is artificially inflated but is not even close enough to pay out if they were to default.

Basically if there is ever a major correction, or currencies fail to double before 120 days, they will not be able to return customer funds.

They promise a return in BCC tokens though. They can print these at will. I could promise everyone on this site a 100% return in sythegold by just printing more.

A ponzi scheme is quite different because the scheme runner has no way to produce the promised units of return.

I.e. you're assuming they guarantee a BCC to BTC exchange ratio which afaik they do not?

 

[John Devola]

They promise a return in BCC tokens though. They can print these at will. I could promise everyone on this site a 100% return in sythegold by just printing more.

A ponzi scheme is quite different because the scheme runner has no way to produce the promised units of return.

I.e. you're assuming they guarantee a BCC to BTC exchange ratio which afaik they do not?

No they give you a return in fiat @Astro

In addition, I believe deep in their terms they say if it all implodes they dont have to return anything. So they do have a balk clause, not that it will stop them from going to jail.

 

No they give you a return in fiat @Astro

In addition, I believe deep in their terms they say if it all implodes they dont have to return anything. So they do have a balk clause, not that it will stop them from going to jail.

Where does it say on their site that they give returns in fiat? From everything I've seen its all in their token.

 

[Eazy E]

We're courts not police.

But explain how this is a scam. I've barely looked into it but it appears they're just printing more bitconnect tokens and giving it to people staking on their coin? If so that isn't a scam, they're just going to devalue their coin over time while delivering the promised return in actual units.

The site promises "1-1,5% daily returns"

If you do the math, a $1000 investment today will net you about $5million dollars in less than 2 years
it is structured as a ponzu scheme
It has a market cap above $1B and it is because they are reinvesting in their own token basically so that $1B market is highly overinflated
The site is also riddled in bad grammar as well

There are countless videos on YouTube of skeptics asking employees in person about the "$5000 now means in 3 years you'll be paying me $15,000 a day" argument and point out how their math doesn't make sense and they can't answer.

They also do the infamous "use my referral link and get bonus daily % gains when you invest". They are using new user investments to pay off older investors and leaving the new investors out in the dust once BTC or their token or both crashes


But regardless of that, basically 2 of the Top 10 developers in the field (Charliee and Vitalik) both said it was a ponzi scheme. Sure, doesn't mean it is but I'll take their word on it anyway.

 

[John Devola]

@Sythe Investing in BitConnect Lending | Bitconnect

 

@Sythe Investing in BitConnect Lending | Bitconnect

yeah that's definitely a problem

you're saying in their fine print they say they have no obligation to actually pay out?

 

[John Devola]

yeah that's definitely a problem

you're saying in their fine print they say they have no obligation to actually pay out?

Seems they changed their website, let me spend a few min looking

 

[John Devola]

@Sythe here they dont guarantee your returns daily, i know somewhere they dont guarantee your principal back either, still looking.

 

[R2Pleasent]

@Sythe Bitconnect uses BTC and crypto for deposit, but at the time of deposit your balance is changed to USD. Likewise, when you withdraw your balance it's in USD value. They give you BCC at the time of cashout based on current market rates, but the bottom line is you're not being promised 1% gains on your BCC balance, you're being promised 1% gains on your USD balance.

Bitconnect is 100% a ponzi scheme. They claim to be running some revolutionary trading bot that is making them over 1% a day trading at huge scales (enough to continue soliciting investment even with a massive portfolio). There is absolutely zero details on their trading bot (which if it exists, would make them one of the biggest traders by volume in the crypto world).

The mods have said that because Bitconnect hasn't scammed anyone yet, they shouldn't be censored. But that's ridiculous. By that logic, all ponzi schemes would be freely advertised on Sythe. Trust me when I say you don't want any association with this company on your website. When it all comes crashing down, which will happen the moment the markets stop bulling out like crazy, it will be an absolute shitstorm.

 

@Sythe Bitconnect uses BTC and crypto for deposit, but at the time of deposit your balance is changed to USD. Likewise, when you withdraw your balance it's in USD value. They give you BCC at the time of cashout based on current market rates, but the bottom line is you're not being promised 1% gains on your BCC balance, you're being promised 1% gains on your USD balance.

Bitconnect is 100% a ponzi scheme. They claim to be running some revolutionary trading bot that is making them over 1% a day trading at huge scales (enough to continue soliciting investment even with a massive portfolio). There is absolutely zero details on their trading bot (which if it exists, would make them one of the biggest traders by volume in the crypto world).

The mods have said that because Bitconnect hasn't scammed anyone yet, they shouldn't be censored. But that's ridiculous. By that logic, all ponzi schemes would be freely advertised on Sythe. Trust me when I say you don't want any association with this company on your website. When it all comes crashing down, which will happen the moment the markets stop bulling out like crazy, it will be an absolute shitstorm.

I think this is all because @Astro is advertising them. You want to chime in Astro?

 

Hey please shoot me specific questions and I’ll try to elaborate and give my opinion

 

[King]

elaborate

Care to elaborate?

 

[Heads447]

Yeah I have multiple CREDIBLE sources on the inside who tell me OogaBooga is running BitConnect. Good luck!

 

Care to elaborate?

Doublespent. Sad attempt.

 

UK threatens to shut down popular Bitcoin investment site BitConnect

 

[R2Pleasent]

Hey please shoot me specific questions and I’ll try to elaborate and give my opinion

Here's 3 questions Astro, please answer them directly:

1) Bitconnect says they are using customer deposits to conduct trades using their proprietary "trading bot". Do you believe they actually have a trading bot which is earning them well over 1% per day on average?

2) If above answer is yes, or maybe, then Bitconnect has perhaps the most profitable trading algorithm in the history of humankind. If that is the case, then why do they need to borrow money at an effective rate of 3,778% per year? If they are making 1%+ per day at scale, can't they find people willing to lend them money at a much lower rate?

3) Do you believe Bitconnect is a ponzi scheme? That is, do you think they have a legitimate business, or are they simply using new customer deposits to repay older customers? And don't obfuscate it with the gains they are making on their own currency, BCC. BCC has given them more runway, same with their exposure to BTC, but ultimately neither of these currencies will continue to grow at 1%+ per day.

 

Here's 3 questions Astro, please answer them directly:

1) Bitconnect says they are using customer deposits to conduct trades using their proprietary "trading bot". Do you believe they actually have a trading bot which is earning them well over 1% per day on average?

2) If above answer is yes, or maybe, then Bitconnect has perhaps the most profitable trading algorithm in the history of humankind. If that is the case, then why do they need to borrow money at an effective rate of 3,778% per year? If they are making 1%+ per day at scale, can't they find people willing to lend them money at a much lower rate?

3) Do you believe Bitconnect is a ponzi scheme? That is, do you think they have a legitimate business, or are they simply using new customer deposits to repay older customers? And don't obfuscate it with the gains they are making on their own currency, BCC. BCC has given them more runway, same with their exposure to BTC, but ultimately neither of these currencies will continue to grow at 1%+ per day.

1) In short, no I don't think they have a trading bot which they use to generate all profits, reason for that is when Coinmarketcap adjusted the BCC supply it went down 5-6 million in current coin supply so that means BCC themselves are holding all of them, I don't think they have sold all of them just to flip BTC on some random exchanges. What I do think is possible though that they do have a trading bot. From march 2016 - end of 2017 they only accepted BTC deposits and from what I'm guessing is that they did have a trading bot, but once they launched their ICO and started asking for BCC deposits they took a different route and never updated the site to reflect that since "profit from a trading bot" is easy to believe. I do still think they have some sort of trading bot, but it's probably not handling anywhere near the volume and it's probably more of a personal thing. Making 1% a day with a trading bot is most certainly possible.

2) I don't think it's in the trading bot, I think it's in the BCC coin value. For example some lenders had to lend out 2000 coins at the start to total a certain $ amount and in the end they doubled their money however they probably only got 10% of those coins back, meaning BCC profited 90% of those coins as reserve. Also, 1% is definitely not guaranteed at all. They could give 0% for a week and it wouldn't go against their TOS. A huge part about Bitconnect is marketing and they need users to keep the coin at a high price. Also, the % is not unheard of, look at most of the alts, some of them went up +40,000% in the matter of a month, so it's certainly not the biggest gainer out there.

3) Ponzi schemes end up in scamming, I truly don't believe that will happen here. Like I said I think they are unethical. Will it be sustainable 2-3 years down the road? I don't know. I think they're mainly using the lending platform as exposure for their coin and want it to become a legitimate cryptocurrency. They've already got some partnerships with other companies (such as debit cards; see: UQuid) and are attending to blockchain meetups etc. What I predict will happen, if it turns out the lending portion of it is unsustainable is that they will stop accepting deposits and start only pay out old investors and move onto other things not focused on the lending portion. I don't think they're currently paying old customers with money from new customers, rather with their own locked up BCC tokens since the value of them keeps going up. It's another reason why I think it's in their best interest to keep paying; like I said earlier they're holding 5-6 million of their own tokens. People bought those tokens from other people, not from them (except the ICO). If they were to scam and just disappear they would disappear with their own coin, which would become worthless. It'd be different if they were still accepting BTC deposits, since they would be able to sell said BTC on other exchanges however with BCC that's not the case. They could probably dump 5-10% of them tops on their own market before it would go to oblivion.

All in all I don't think they're scammers and will run away with people's USD (it's very clear that everything is in USD value when investing/getting lending profits) however there are obvious red flags so I understand the doubt. I do think there's money to be made and I think they want to become a legitimate company. I'd trust them the same way as a lesser known coin. The difference here is that one is centralized and the other one is decentralized, how many coins claim to have real world usage and mass adoption? It's a different kind of trust required in the end the "promises" are the same (gaining money) and I don't really see a difference between buying a coin, having it go to shit whilst you're holding and Bitconnect potentially scamming; in the end you'll lose money. This is still a fairly new market and for now I have faith in it, same faith that I have in the BCC company for the aforementioned reasons. Would I suggest selling your house and putting it all in? No, it's still a gamble but that's the deal with any speculative investment.