It appears that those who called Bitconnect a scam were right. Bitconnect is now a confirmed exit scam and all BCC tokens are worthless. There was always a chance that this could be the case which is why I avoided promoting Bitconnect through the referral program. Any money that I put at risk was my own and all losses are mine to take. The lesson in crypto is do not invest what you cannot afford to lose and understand the risks vs benefits.
Why is Bitconnect an exit scam? I reached this conclusion based on how they decided to shut down their website. They simply do not have any tokens as they likely dumped them on the exchanges while all account holders have their tokens locked on these exchanges. The end result is BCC will be worth $0 at some point while insiders at Bitconnect likely got out of BCC using BitconnectX which I suspect is also part of the exit scam.
Remember MtGox? We have seen this happen before. When MtGox happened it crashed the markets and set back the crypto space for a good while. This time it is a bit different but because so many new investors were burned by Bitconnect it is going to set back marketing of crypto for a good while.
The way I think about investing in crypto is I have different categories:
- Sure things. These include investments which I have looked deeply at the fundamentals and am almost sure that it will go x10 or x100. These include for me ENG (Enigma), RLC (iExec), ETH(Ethereum), Steem and Tezos.
- Moonshots. These include investments like Tauchain or EOS. These moonshoots are technically feasible but also very high impact world changing attempts.
- Gambles. These include the now confirmed scam Bitconnect and other very high risk high reward also know as HYIP. These are the equivalent of Satoshi Dice. ICOs are also included here because ICOs are pretty much gambles.
The interesting question now is how will the popular Youtubers who promoted Bitconnect aggressively for the past 6 months respond to being called scammers? They promoted a scam after all.
Shitconnect is over ....I think 50% of investers knew it's a ponzi, they just hoped they turn a profit before it crashes, like gambling. ......I also invested in enigma .
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Less than 1% of my net worth was put into Bitconnect so whatever my loss was it is not life changing. I have heard stories of people putting themselves into debt to invest in Bitconnect though.
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Im not seeing as a exact exit scam because they still released the lending $ value in bcc or something like that, they didnt just left with all the coins but yeah is a ending to the pyramid scheme, there isnt any point people should use it, i hope learn about this systems.
Thanks for sharing your opinion
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It's not released. Can anyone transfer it off the Bitconnect platform?
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I think they can, but only BCC tokens
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Show me video proof.
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Im just saying what i see people saying, im not in bitconnect
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Hello @dana-edwards, Smart people stayed away from it.
Finally, This scam is going down. I feel sorry for those that lost their funds but they were probably warned a dozen times!
2 months ago, I published 2 deep analysis on the topic (the first one went Viral with 7k+ views) trying to warn new investors.
Take a look if you want to understand why it was OBVIOUS it was a Ponzi Scheme.
Take care my CryptoFriends!
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@dana-edwards - I remember you called this out and predicted already in your post last month. I was always suspicious of HYIPs because it is very easy to reach a point in such programs where the outflow due to existing customers becomes higher than the inflow through new customers enticed by promises of high yield.
While I am sad about the setback to crypto world because of such schemes, I am happy that they are exposed.
Thanks for the confirmation. Upvoted full
Regards,
@vm2904
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Will the account verification information be used for identity theft? It is important that everyone who signed up be careful about what information they gave to Bitconnect.
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@dana-edwards - OMG. That dimension did not even enter my mind. It certainly opens up a big can of worms if the verification information gets leaked or misused !
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The promoters will claim the exit was forced by ‘authorities’ or that they were also scammed. One has already claimed he was hacked losing large amounts of btc, which was likely moved by him to a different address!
They will be back next week with a new scam no doubt!
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Haha what da ...
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This clip is more hilarious now that bitconnect is dead. This was only a few months ago.
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I wanna see their face now 😁
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Bitconnect was an obvious Ponzi from the beginning. Shame on anyone that got trapped and could not afford to lose all they put into that sham.
As for your your guaranteed 10X list, all I can say is Wow. ENG and STEEM are not 10X guarantees from my perspective.
But each to their own. You have done a nice job of bucketing your money into at least the three categories of sure things, gambles and moon shots.
As a question - why do you not have any of the privacy focused altcoins on your list. It seems logical to me that one of them has to be the long term survivor. Monero or PIVX or Verge or DASH or ....
One of them has to hit it big I believe.
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The State of Texas had already marked them. It is confirmed that they were right, Excellent analysis @dana-edwards
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As I recall, there were some very prominent Steemians who sang the praises of BitConnect, too.
I stayed well clear of it because the math just didn't add up-- that rejection wasn't based on BitConnect, though, but on almost 30 years of studying and writing about the network marketing industry. It was one of those that might keep going as long as BTC kept doubling on a regular basis, but when BTC started doing more of a sideways dance then things at BCC just couldn't make sense anymore.
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Yup, the bloodbath in the crypto markets continues with more and more scams like Bitconnect coming. I wonder where are those people who are promoting Bitconnect on Steemit.
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Pigs! Hope they get slaughtered (metaphorically).
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Any prosecutions in the offing?
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i almost investsed in it
luckily i didnt
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About Youtubers there are one guy that I follow that excluded all videos about that... about Bitconnect. The channel was died also.
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@dana-edwards Scammers follow the money. Too many lessons to be learnt as it seems. ETH and Steem all the way!
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I didn't think it would still be alive in 2018, too bad so many got tricked into it. Even though I could've easily invested into it at $1 I saw it for what it was at the start already and told everyone who asked not to touch it, some were annoyed that they missed the big opportunity to profit but there's plenty of good and real investments in the space. In the end I'd rather profit from something real than knowing I profited from many others losing a lot of money.
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RIP bitconnect and RIP all believers, including myself.
Luckily I only invested what I was prepared to lose.
Bitconnect was the example for all lending-platforms.
This Bitconnect scam makes other lending platforms lose all credibility in my opinion,
so I'm afraid we won't see any platform take over unless the platform explains why it could be sustainable.
Anyway I don't see it happening, feels bad.
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Lol you copied my comment from other posts.
Really you can't write your own comment mate?
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The end of the Bitcoinnect !!!! @dana-edwards
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the company was introduced as "a safe way to make a high profit."
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Now I need to go back, check old posts and make a note of everyone who was screaming it is a scam. In the future I want to selfishly hear more from them. ;-)
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Last week s.Korea positions of possibly ban crypto and now united states ..
For sure some big names behind this downfall but i surly believe we can't avoid crypto currency totally it will rise in the future ..Its just my opinion
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There were a lot of people on this platform including criag grant who on a daily basis , promoted Bitconnect , and I kept hearing that it was a scam but I let the greed get to me and I invested in it. For the past 2 days, it was not letting me log in and I had a bad feeling and today I’m reading it everywhere that it was a scam. Never let go of a gutt feeling
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I tried to warn about the Craig Grant dude. Sham artist. Hopefully you don't lose too much.
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Hopefully you did not lose too much. I definitely took some losses but made sure not to promote so as to avoid taking anyone else down. The risk was always there.
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About 2K but I hope they give it back , did you hear anything on that ?
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At least it seems like you've learned a lesson and recognize greed was driving you, a lot of people have been warning about this since the very beginning so those who fell for it had plenty of information available to make the right choice if they wanted to.
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It will be interesting to see the fall out from this.. it sounded too good to be true! I never could quite figure out the bot they had!
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Kind of lends credibility to the Texas Securities board which filed cease and desist orders on bitconnect. Surprising a lot of naysayers and facebookers and other crypto people that the Texas Government was just looking to shut something them down ala S. Korean style. Cryptanalysis people had more than enough time to protect their audience, Yet they passed it all of as government overreach..
Sorry if you lost any funds, but a gamble is a gamble. I saw the State of Texas story from someone here on steemit, more than a month ago I think.
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Well either it gave the scam the excuse to shut down while saving face or they shut it down. Either way the result is the same.
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BitDissConnect
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Coin markets have been very dangerous. You have to investigate well to avoid further sadness. Thank you for sharing this informative article.
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I'm glad i didn't have any money in there. Hope the people involved come out ok.
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I am sorry for those who lost money, but it does affect all of us because the credibility of crypto is put to test.
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The risk for all coins is valid, but this will prevent you from leaving the system immediately by confiscating your pawn for a certain period of time. which in the beginning creates distrust.
according to the eye I do not invest my money on it. I put the limits for the bitcoin or alternative coins I bought from the stock market and I can say that the figure is buying and selling. The moment the access to the site is interrupted, such as when you are writing the following text on BitConnect, the money stays inside ...
Some on the internet are defending the system. and some of them refer to the videos they have taken from foreign sources, so they seem to have made a lot of investment and collect references.
you have to refer me to get any bitcoin so get the bitcoin, have you seen me?
@dana-edwards
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I really appreciate you posting a blog on this. So many people were burned with the Madoff Ponzi scheme as well. I too stayed away from this crypto.
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BitConnect Down 87% down and Alt Coin Market Cap Down 40% #CryptoCarnage https://busy.org/cryptocarnage/@zurichtimes/t34agc8o
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Connected? This is the sort of correlation worth analyzing.
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Happy to do some statistical analysis on this if you're interested, might be beneficial to the community and a whole.
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Sure why not? Something big happened.
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I'm sure you're aware of Tether's influence on price. With so many coins, bitcoin last year included having such a low marketcap it was child's play for any manipulators to boost the price. It seemed like each new day was a pump and dump group's chance to rocket any altcoin of their choosing with a small enough marketcap to get the momentum going, this is pretty well-documented to have occurred numerous times through communications channels we're all familiar with.
As for yourself, as a large holder I would hope that you're aware of the problems that could present themselves if prices continue to drop as a result of the fallout from the inability for tether and wash-trading on the exchanges to keep a price floor on the crypto market.
I liken this problem to the one that's slowly happening in the fiat space. The direct parallel is that as long as the central banks continued to purchase assets or make bids on things like equities or corporate bonds or toxic instruments things seem to be good and a nice price floor is maintained or bonds seem cheap because there's always a buyer. When the central banks decide to slow down their purchases the market will arrive at true price discovery and quickly realize everyone only felt safe because they knew there would always be a buyer of last resort.
In crypto that could be applied to tether and the exchanges that sought a quick buck instead of making money the hard way via running decent exchanges and trading platforms and taking their already sizeable trading fees. Instead they decided to unleash the faucet of money, inject their own fake capital (USDT) into the system and allow the types of spoofing and wash trading that are banned for obvious reasons in regulated markets. When the buyer of last resort, let's say Bitfinex and all other exchanges that allow such activity via Tether, are no longer willing or able (due to a liquidity crunch, similar to how inter-bank lending can fail in times of crisis) to print more money (regulatory scrutiny can certainly do this to Tether itself if any government finds the incentive, they're afraid of US regulators hence banning US traders from using USDT, as with US traders comes US scrutiny which is why they're locked out of most ICOs) then price discovery quickly becomes a game of who has their money nearest the exit door.
This leaves most essentially trapped in a crowded room, and though the smoke may be obvious at first the gate-keepers themselves are the first to know of the underlying issues and will close the doors behind them if they see fit. Once the inferno is apparent you're left with hundreds of thousands if not millions stampeding towards any exit they can find, but they'll soon realize that the door they have available to them at their exchange of choice didn't actually lead outside, it just goes into another crypto-fire room.
Basically, if you can only exchange your crypto for USDT it means that there's no fire escape and you'll be lucky to get out with third-degree burns to your initial capital. Many will be left with just ashes. Sorry for painting this horrifying picture. Not many exchanges have access to real banking services, do not have the liquidity they state, and do not have fiat pairings. Trade carefully.
The TL;DR could be... Kraken+Poloniex=USDT trading exchanges, they have some of the fattest Steem wallets, and USDT's true value is a big question mark. Where's their banking? Why won't they be audited? Why is Kraken allowing 0 fee trades, are they really confident that they can operate without charging for trading, or are they just hoping you keep your money in the casino until they can cash out?
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Will let you know if I find anything!
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all we have to do is analyze. we can do all the results after we have analyzed the data. I'm going to take a look at BitConnect and start analyzing it. I hope I can make a more detailed comment after that. @dana-edwards
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scaaaaaaaaaaaaaaaaaammmmmmmmmmmmm fuck off
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@dana-edwards I think BitCoin is going to explode.This decrease in bitcoin is reported before the storm.in the near future bitcoin can see 25-30 k
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Good riddance to the scammers. We don't need that in the Crypto community. Not sure how the youtubers will feel it, I guess it just depends if we trust them that they knew all along.
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It is going to be of kind hard for Youtubers who marketed Bitconnect to restore their credibility. Let's find out and see how they explain what happened. Will they be honest and apologize to their viewers?
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This is going to be super awkward for Youtubers who promoted Bitconnect. If somebody has the guts to apologize I'll give them that but it's going to be hard knowing they are somewhat responsible for huge losses, not only for themselves, but for multiple viewers. Or if they knew all along they'll just disappear, I guess.
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@craig-grant
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"Bitconnect has not given us any information about its capital, its financial position and profit-making strategies for investors. The company did not have any fixed addresses in the UK. There is also no information about how to make money for investors, including the algorithms behind the company. But the company was introduced as "a safe way to make a high profit."
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Not sure anyone said it was safe. I would say it was always risky but people marketed it so damn well that even though it was risky people still bought in.
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the stock market is at risk. You can not be rich without risk. you will be poor or rich. Here is your life rule.
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I sniffed a scam from the very first time i heard about BitConnect. After looking at their website, I knew it was something I wanted nothing to do with. I'm glad that my gut instincts were so dead on. I'm glad this news came out so we can cross this scam off our list...
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Thanks for the update. I personally stayed away from Bitconnect, as I do not like the idea of gambling when it comes to crypto (due to how involved I am in it).
I do agree that it's important to have these strategies though, to diversify your portfolio and spread the risk level between investments.
I generally research coins that I think have the potential to 10-20x, and it has worked out well so far by and large. Who knows though, sometimes a person may take a gamble on a coin with a very low market cap and it will 500x - it's a crazy market!
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it was really obvious to me and a lot of other people. some very influential people on steemit were promoting it for their own ends. They also surely knew it was total crap. we don't need these services. anybody who falls for them is just naive. I hope the space can cleanse itself through better spread of information. it's a sad indictment of crypto and all the more reason why you should always conduct your own research. if it sounds way to good to be true, do the maths, make up your own mind !
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Many famous youtubers delete their videos on bitconnect.
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Bitconnect crashes and these losers (who gambled their life savings on it) desperately cashed out in their other crypto investments, causing the rest of the market to crash in the process.
If any coin structures guarantee you 14x on your investment per year, steer clear! USI-TECH is next in line but I don't think USI-TECH has enough influence to crash the market the way Bitconnect did.
Ponzi schemes like bitconnect and usi-tech bring a bad name to this community and the people who invested in them deserve to go rekt.
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