The biggest cryptocurrency scams in history (Part 2) — BitConnect

The rise of Bitconnect

And, let us not forget this advertisement video:

Promises, promises

Scam Warning Signs

  • anything you invested was tied up for between 120 and 299 days.
  • it promised guaranteed returns on investment (nearly 1% daily).
  • the website and advertising were ambiguous, with incorrect spellings and bad grammar too.
  • BitConnect promoters were linked with MMM (a Ponzi scheme) in many Reddit post.
  • their platform’s growth was driven by a lucrative affiliate program.
  • it attracted initial investors with a promise of high daily returns
  • subsidised the withdrawals of capital/returns (i.e. realised gains) of initial investors through themselves (i.e. initial working capital), or existing investors who have not withdrawn capital or returns (i.e. re-invested).
  • encouraged the adoption of the platform by new users via proof that the platform ‘works’ through users who have withdrawn capital/returns, and a percentage-based referral system, which encourages word of mouth.




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