There has always being a debate on the legitimacy of Bitconnect in many Crypto communities and online forums before now. However, a single tweet by Vitalik Buterin put every doubt to rest concerning the legitimacy of Bitconnect. It all started with a tweet where Vitalik Buterin was questioned about Bitconnect, he had no idea what Bitconnect really means. This shows the level of credibility possess by Bitconnect.
We want to believe he did his research and got to know Bitconnect brings gullible investors into the fold using the 1% daily ROI as a bait.
If you don’t know what a Ponzi is, just read ahead and see how a Ponzi works. In 1920, a crook named Charles Ponzi promised New England investors a 40pc returns in 90 days. Compared to 5pc they would have gotten in a savings account. Regardless of the mode of operandi of a ponzi, they all share similar characteristics.
Guarantee of High Returns With Little Risk
Bitconnect is a perfect example of this characteristics. With every deposit, investors are promised of a 1% to 2% returns daily. Within 365 days, investors would have accumulated a 1000% ROI. There’s no investment wherever in the world with such a ridiculous ROI. Whatever your stake is in the four-tier system, investors will still be rewarded with 40% of investment monthly.
Bitconnect Promises Consistent Returns
Regardless of market condition, especially with the volatile and unstable value of Cryptocurrencies, there will always be returns. Investors are assured of a continuous and consistent flow of returns. Even in the event of a hard fork, Bitconnect investors will always make profit.
Cryptos are not built around a central regulatory body. The authorities will now be the respected voices like Vitalik Buterin and Cryptocurrency listing websites. Whoever does not know Vitalik Buterin or disregard his thoughts and words regarding Cryptos is as dumb as those investing in Bitconnect. Vitalik already pointed out that it is a Ponzi without mincing words based on the humongous ROI. CoinCodex also delisted Bitconnect amidst the debates of scam. There are also hot debates on Reddit regarding the opinion of Vitalik.
Collapse and Inability to Withdraw Fund
Just recently, Bitpetite which is another similar HYIP like Bitconnect collapsed. The ponzi went underground with all innocents or rather gullible individuals investments. That’s always the end of Ponzi schemes. They will encounter difficulties in keeping up appearances. Only the older investors who pull out quickly reap the benefits.
There are several pointers that the final days are here for Bitconnect. From the huge $2 billion market capitalization it had last month, it has dipped to around $600 Million. Just like many failed Ponzi schemes, they are always built around a dubious referral system with bonuses. Up till now, the team and the trading bot behind Bitconnect are still unknown. These are all red flags that points to the Ponzi nature of Bitconnect.
No one knows when the end of Bitconnect will come but it will definitely come.