Cryptocurrencies are the hot investment these days. With the rising price of bitcoins, countless people are trying to cash in on the craze. My subscribers have asked me to take a look at BitConnect. Like any commodity, cryptocurrency prices change with supply and demand. At any moment the market can collapse. BitConnect claims to step in and provide stability.
BitConnect Scam Claims
BitConnect is an open source all in one bitcoin and crypto community platform designed to provide multiple investment opportunities with cryptocurrency education where it is entirely possible to find the independence we all desire, in a community of like-minded, freedom loving individuals who, like you, are seeking the possibility of income stability in a very unstable world.
Holding bitcoins exclusively can be a risky investment due to high price volatility. One day the price is up 10% then the next day it’s down 20%, means that an asset is risky to hold. To combat bitcoin price volatility we provide the bitcoin lending module for bitcoin investors, which maintains your asset value and even earn a substantial return on investment.
Here is a video promotion for BitConnect
BitConnect Scam Finally Exposed
Bitconnect LTD was formed in 2016.
Address: THE PANORAMA PARK STREET ASHFORD ENGLAND TN24 8EZ.
Company Number :10278342
Companies Made Simple was used to create BITCONNECT LTD. They are a low cost way for offshore companies to create companies in the UK. There is no way to know where Bitconnect is actually located and who is actually behind it. The people behind Bitconnect are hiding their identities. No information is provided on their website about who they are.
The address provided for BitConnect is a shared office space that provides virtual offices.
Their website was originally hosted in Belize. – Source steemit.com
BitConnect in their press releases lists Satao Nakamoto as Head of Development.
Satao Nakamoto seems to be a fabricated individual that plays on the name of the suspected creator of Bitcoin: Satoshi Nakamoto.
Here is how BitConnect was originally described on 03-21-2016:
BitConnect is an open-source platform where you can buy, sell and trade bitcoins to the other trusted community members. Bitconnect system members interact directly with each other in a peer to peer fashion, enabling buy, sell or lend operations to all other members. Bitconnect was not formed to be a company nor financial institution but to function as a collective. Our mission is to make Bitcoin the main payment system in use by the world. We propose bolstering bitcoin acceptance by providing this peer-to-peer community where all members interact directly with each other. To accomplish this, we have provided you with several modules designed to connect you to our marketplace. Some of these modules include Buying, Selling, Lending, and listings services (where we act as the bitcoin payment custodian on your behalf.) Bitconnect has designed these modules from the ground up to provide extensive verification and security so that the highest ranked service providers are promoted first, providing an opportunity for honest participants to earn **********al income or procure bitcoin through our product offering.
How does Bitconnect System work?
Bitconnect system is divided into four major modules. They work independently of one another but do contain a linked integrated feedback system used to enforce quality and reputation parameters on the system. Each Bitconnect member receives a feedback for each completed transaction for each given module.
Bitcoin lending platform (Community Lending)
Bitconnect members can potentially earn Bitcoin through peer-lending to other trusted community members. Using our Peer rating system, we can help you best identify potential microloan opportunities to earn a substantial return on your investment! Let us do the hard work of vetting qualified collateral holders so you can rest easy and let your investment do the heavy lifting.
Bitcoin trading platform (Buy and Sell Bitcoins)
Bitconnect Trading Module allows members to exchange their bitcoins to other trusted community members. Only qualified community members may use the trading module to create trade advertisements with the exchange rate and mode of payment they prefer. All other bitconnect members can browse these trade advertisements to buy or sell bitcoins.
To post trade advertisement, all members are required to unlock this feature by gathering a minimum of 500 transaction feedbacks from the community, through utilizing the Bitcoin Lending module, no exceptions.
Bitcoin e-commerce platform (Buy and Sell Products with bitcoins)
This third bitconnect module allows the ability to create listings for other members to buy or sell your goods & services using bitcoin as a payment processor. To become a registered vendor you need minimum 1000 transaction feedback from previous modules to submit product listings through seller portal. This is necessary for trust verification set by the Bitconnect system.
Bit Store (Local bitcoin store)
Bitconnect final module is called a BitStore. This is an official Bitconnect store equipped with bitcoin ATM to serve the local community. As this level has special functionality, all accounts must be verified and peer-determined and limited in issue. – Source talkgold.com
Their story has changed recently. They now offer their own cryptocurrency and they are now a company.
The Bitconnect cryptocurrency looks to be legitimate. In my opinion, it is just the cover for their Ponzi scheme lending program.
Time has run out for the BitConnect scam. BitConnect is closing down their primary scam after two cease and desist letters, one from the Texas State Securities Board, and one from the North Carolina Secretary of State.
For the BitConnect Lending Program, investors purchase BitConnect Coins, which are provided to a “BitConnect Trading Bot” to generate returns as high as 40% a month.
The announcement from BitConnect
Changes coming for the BitConnect system – Halt of lending and exchange platform
This is to inform all community members that we are closing the BitConnect lending and exchange platform. We are closing the lending operation immediately with the release of all outstanding loans. With release of your entire active loan in the lending wallet we are transferring all your lending wallet balance to your BitConnect wallet balance at 363.62 USD. This rate has been calculated based on last 15 days averages of the closing price registered on coinmarketcap.com. You are free to withdraw your BitConnect coin currently in QT wallets that was used for staking as well. We are also closing BCC exchange platform in 5 days. In short, we are closing lending service and exchange service while BitConnect.co website will operate for wallet service, news and educational purposes.
The reason for halt of lending and exchange platform has many reasons as follow:
- The continuous bad press has made community members uneasy and created a lack of confidence in the platform.
- We have received two Cease and Desist letters, one from the Texas State Securities Board, and one from the North Carolina Secretary of State Securities Division. These actions have become a hindrance for the legal continuation of the platform.
- Outside forces have performed DDos attacks on platform several times and have made it clear that these will continue. These interruptions in service have made the platform unstable and have created more panic inside the community.
Closing the lending and exchange platform doesn’t mean that we will stop supporting BitConnect coin. Closing the lending platform will allow BitConnect to be listed on outside exchanges giving more options for trading.
We will keep working to make BitConnect coin available to merchant websites providing them API access to accept BitConnect Coins on their platforms.
BitConnect X ICO is still functional and we are building an exchange platform on the BitConnect X website. With BitConnect X operating as an exchange platform, BitConnect Coin (BCC) will be listed there.
This is not the end of this community, but we are closing some of the services on the website platform and we will continue offering other cyptocurrency services in the future.
The Team BitConnect
– Source bitconnect.co
Is BitConnect scam or not?
In my opinion, BitConnect uses a cryptocurrency as a cover for running a Ponzi scheme. They provide daily interest on an investment that has no income other than new investor money. They artificially increase the value of their cryptocurrency by having new investors in the Ponzi scheme purchase their coin first before investing. They hide the identity of the owners of this scam by using an offshore company that was created through Companies Made Simple. They expand the amount of people in this Ponzi scheme by offering a recruiting program that pays a commission 7 levels deep for recruits.