Recently, I wrote a column for CrushTheStreet.com entitled, "BitConnect Ponzi Scheme Proves You Can’t Be Stupid in the Blockchain." It, of course, was inspired by the dramatic rise, and even more dramatic collapse of BitConnect, the ponzi scheme that gave cryptocurrency markets a bad name.
Those of us who are true adherents of the blockchain and the cryptocurrency (bitcoin and altcoin) story understand that BitConnect was not a true blockchain investment. Rather, it used the bitcoin name as a marketing device to sell a ponzi investing scheme.
BitConnect only proves that you cannot be stupid in the blockchain. No matter how great an investing opportunity may sound, you must research the fundamentals. For BitConnect, there were no fundamentals, other than a supposed trading algorithm that produced massive profits from which investors received, on average, a 1% daily payout.
In hindsight for the scammed, the red flag was obvious!
Guaranteed daily payouts, by their nature, sound scammy, and it was. Nobody, not even an "advanced trading algorithm," can predict the markets with enough accuracy and profitability to guarantee daily payouts.
But worse yet was the lockout period. If you invested in BitConnect, your money was on lockdown, depending on how much money you invested. But even investing the highest amount of money still led to a lockdown period of at least two months.
That was the sign right there!
Rather than a trading algorithm, new investor money was used to pay off old investors. This was the classic definition of an investing scam, a Ponzi scheme!
Honestly, you don't have to dive into the granularity. If any investing platform offers you guaranteed anything, you run. You don't question it, or play around with it...you run.
Otherwise, you truly risk losing it all!
Here's the full URL for my Crush The Street article -- https://crushthestreet.com/articles/breaking-news/bitconnect-ponzi-scheme-proves-cant-stupid-blockchain
Remember, if it's not Bullish Money, it's Bull Sh*t!