If you guys and gals have been keeping up with cryptocurrencies, then you've probably heard about the recent Bitconnect plummet.
They put a hault on all BCC lending (shocker), and the Bitconnect coin went from over $400 per coin to about $20. That's a drop of about 95%.
If you couldn't tell that this was going to happen, or if Trevon James, "CryptoNick", and Ryan Hildreth were just too darn persuasive for you, you're not alone. Many people lost money in this one.
I even thought about putting some money at times, seeing all of these people make big gains (or so they thought). But my gut told me not to.
Here's why I decided not to invest/lend on Bitconnect:
The website was sketchy. There were many misprints, and it just didn't look like a place you should be trusting with money.
You have to exchange your Bitcoin for Bitconnect Coin. So right off the bat, they have your Bitcoin, and you have this Bitconnect coin which may or may not be worthless.
When you loan your Bitconnect coin, you have to wait to get your capital back.
No proof of bot trades. They tell you that you're daily 1% interest comes from their "volatility software" but they don't show you a history of trades.
Just sounded too good to be true. On top of the daily 1%, you receive an affiliate bonus when someone lends under you. It was a pyramid where the person you loan under receives 7% of what you lend. The person above them receives 5%, above them 3%, then 1%. That means they were giving roughly 15% for EVERY loan. Really? Obviously no business that generous can be sustainable.
Now after all of that you invested anyway, I just hope you got you're money out in time.
In the future, if you come across a platform similar to this, keep an eye out for red flags. If the website looks sketchy or the founders try to hide who they are or where they are located, probably shouldn't put money in.
Happy trading everyone!
Bitcoin address:
18dBoDKpqv13wq9NgTUuyoSZziNeJ2FjJ1
Ethereum address:
0x78555A65c86f847F0bc69FeB4797B1734760db35
Litecoin address:
LSFEFzcqiMAyDY3MnS5gNW9had564QcwFb