RE: The ShitConnect Ponzi Train Can't Be Stopped (The Ugly Truth Inside)
I wrote a piece about Bitconnect (shitconnect) as well. It really is a problem. It started out as a little malignant cell in the crypto space that is rapidly growing into a giant tumor and eventually a gargantuan cancer that will impact every crypto .
It's already showing signs of faltering. Just look at the average pay out in interest over the last month (0.82) and last 6 months (0.95). It's decreasing for a reason even though Bitcoin has risen and even BCC has risen. I leave out the weekly as it's not consistent enough, but if you look at one 7 day it will be (0.62) and the next (1.10) albeit on a downward trend overall. That is the real indicator. When bitcoin's price dwindles or something happens within the space it will make it near impossible for the company to continue paying out such huge interest rates. It's frustrating because it's just a novel pyramid scheme that is largely making money for those who are doing its bidding (affiliate marketing) but the truth is that whenever this train finally does come to a halt the headlines won't be (Ponzi scheme Bitconnect, unrelated to other cryptocurrencies, is exposed as a Pyramid) the headlines will, however, be:
"Multi-Billion Dollar Pyramid Scheme tied to Bitcoin"
"Cryptocurrency Pyramid scheme exposed"
"Bitcoin price plummets amid multibillion dollar pyramid scheme, SEC investigating"
That may be years from now or next week. If you're paying out huge sums of money to the whales (I.e. giant affiliate marketers and those who invest $10,000+ and get that back in 120 days), then you know it's going to crumble on the little man who invested $800 and has to wait more than 2/3 of a year to get back their amount. By the time they can, assuming the site is still working properly, bitconnect will be worth next to nothing and interest will be 0.00001%.
It's frustrating for the time being though.
The trouble is that the little guy, who invested $800 has seen it pay out, so will now invest a couple of grand. Everyone is wary of it but if you see it consistently pay out you may start to believe and put more in.
Look at the marketers. They all invested $100 initially then reinvested referrals to look good on video.
I agree that when it crashes the whole world of crypto is going to suffer. I’m sure it will recover though so may be a buying opportunity!! Just got to get the timing right.