BitConnect is an investment opportunity for crytocurrency enthusiasts to purchase a new altcoin, the”BitConnect Coin” (BCC). BitConnect promises “daily profit” ROI of up to 40% a month plus bonus rates.
What Is BitConnect?
There is absolutely zero information regarding who's behind BitConnect. The site's registration itself lists only that it was registered anonymously in February of 2016, and leaves out any identifying information such as names, addresses, or phone numbers. In fact, the only way to contact whoever it is behind BitConnect is through email.
This is, of course, a major red flag whenever a company that purports to handle investments doesn't provide enough transparency to let you know who they are. Legitimate businesses, after all, do not hide their identity.
The only “product” BitConnect offers is the sale of BitConnect Coins. A certain amount of pre-mined BCC is available for purchase directly from BitConnect, either in exchange for fiat currency or another cryptocurrency like Bitcoin.
However, once you purchase BCC the only thing you can do with it is to re-invest it in BitConnect for a set ROI. You can also recruit other investors to earn commission-based income from recruitment activity. More on both of these opportunities below.
At time of this writing 1 BCC was worth around $7 USD. However, this is likely to fluctuate.
There's two ways to earn with BitConnect – buying and investing BCC, and recruiting others to do the same.
The ROI you can earn from investing fluctuates with the amount of money you invest. Buying anywhere from $100 to $1000 worth of BCC earns you a 40% a month ROI over 299 days. The more you invest, the shorter time it takes for your investment to mature; you also earn bonus ROI as well. Here's the breakdown:
- $1010 to $5000 – 40% monthly ROI over 239 days plus 23.9% ROI
- $5010 to $10,000 – 40% monthly ROI over 179 days plus 35.9% ROI
- $10,010 to $100,000 – 40% monthly ROI over 120 days plus 30% ROI
Meanwhile, you can also earn referral commissions through a unilevel structure. Affiliates can build a team as deep and wide as they like, with commission percentages going from 7% at level one and bottoming out at 0.01% at level 11 and deeper.
Sounds like a great investment opportunity, right? Well guess again – there's a lot wrong with BitConnect.
First is the fact that nobody knows who's behind BitConnect. You wouldn't just hand a complete stranger a big sack of your cash without making sure they're who they say they are, so why do it with an anonymous group of people with a slick-looking website?
Secondly, there's a problem with the cryptocurrency itself. With BitConnect Coin being pre-mined and doled out every time some investor buys a certain amount, the economy of the digital currency is susceptible to manipulating by BitConnect in a typical pump-and-dump style scam.
There's nothing stopping the owners changing up the value of the coin, raking in massive amounts of money, then flood the market and causing the valuation of the coin to drop into the dirt. This leaves all their investors with heaps of worthless digital currency while BitConnect keeps all the proceeds from when the sale price was high.
Making matters even worse is the fact that BitConnect encourages affiliate recruitment as well. Sure, you might make a few bucks here and there if you hustle through recruitment, but the end result is just more money pouring into BitConnect, driving the price of BCC up even higher and faster.
What this means is that the inevitable drop will come that much sooner, leaving anyone who invested in BCC with, once again, a big pile of useless altcoin that nobody wants to buy off of them because it's worthless.
BitConnect is a real mess, but thanks to the long terms on its ROI it's probably going to limp along for some time before the truth comes out. This means there's plenty of time for BitConnect to fleece new victims. Steer clear, and make sure you're not going to be one of them.