I've seen some people say recently that Regalcoin is the next BitConnect, but I've seen something today that I am pretty sure IS the next BitConnect.
What is BitConnect?
BitConnect is a bit of intriguing coin. It seems to be a ponzi/pyramid scheme but clearly a lot of people (especially on YouTube) swear by it and have apparently earned a lot of money from it. It had an ICO back in November 2016. It then went on a incredible rise from a few cents per coin to what is now a value of around $200 per coin in roughly the space on a year.
https://coinmarketcap.com/currencies/bitconnect/
The project is attractive to many people because it is mineable, can be staked, lending with the so-called "volatility software" which is supposed to be a trading bot, and then there's straight forward trading the coins yourself. And then there's the affiliate scheme too where you can build legs in your organisation (a pyramid structure I suppose) and you get a percentage of down stream investments.
Trading of the coins (BCC) pretty much have to be done through their own exchange, there's hardly any market for the coin outside of their own exchange. Despite a promise from the ICO to be on Bittrex, they eventually went ahead without Bittrex and never seemed to have been added to their exchange.
What is EthConnect and why is it similar to BitConnect?
Well I'm glad you asked, EthConnect really IS the next BitConnect! It has pretty much all the same features and traits which we will go into shortly. I had a look into this and everything about it says to me, this is a reskin of BitConnect. Almost look like a cookie cutter job they are so similar.
I know you are dying to know the similarities so let's get into it.
Name
Obviously the name is very similar, BitConnect (BCC) versus EthConnect (ECH). Not a very original copy IMHO.
Similar features
EthConnect has pretty much the same features as BitConnect.
- Coin mining - Snap!
- Coin staking - Snap!
- Lending program with big returns via volatility software - Snap!
Lending on Lending Platform (Dec 1, 2017 Up to 52% monthly). This investment option involves profiting from EthConnect trading bot and volatility software.
- Profit from holding/trading coins on their own exchange - Snap!
- Affiliate/referral scheme for earning commission - Snap!
- ICO starts in November - Snap!
- Third party exchanges - limited choice but expect to use Livecoin, Coinexchange and Novaexchange - Snap!
- Coin supply - BCC 28 million, ECH 31 million - Close!
They even look similar!
Ok, now that we've looked at the features, the visuals even look similar. A case of code reuse perhaps? That's fine in the open sourced world, but let's have a look at the similar visuals. Of course the screen grabs are not exactly the same, but if you look at the features and the links, they are more or less the same.
EthConnect coin balance bar
BitConnect coin balance bar
BitConnect Exchange Side Bar
EthConnect Exchange Side Bar
Check the similar road map
The project roadmaps for both projects have a very similar feel to them too. What's really interesting is that the BitConnect Roadmap ends in November 2017, just as the Roadmap for EthConnect starts. Is that a coincidence?
BitConnect Roadmap
See the full roadmap here: https://bitconnectcoin.co/roadmap
EthConnect Roadmap
See the full roadmap here: https://ethconnect.net/#
Both roadmaps talk of using the same third party exchanges, namely Livecoin, Coinexchange and Novaexchange.
A bunch of red flags
After having looked at this project, I can't help but feel a bit skeptical about the claims of this project and how they could go about achieving the promised returns of 52% monthly lending returns. But we know that BitConnect has achieved amazing returns so it's not impossible. The question that always springs to mind is - can it last?
So here are some red flags that I would raise about this project:
Nonsensical website
EthConnect actually has a pretty slick website but it's somewhat let down by some of the poor copywriting on it. As you can see in the screenshot below, even the tagline is nonsensical.
EthConnect is a project aimed to create a lending platform trust and reputation with Ethereum ecosystem
What they say and how they try to explain how they will make money and operate just does not make real sense.
Overly ambitious roadmap
EthConnect has some incredible goals. Starting from $0.50 at ICO, it wants to reach a coin value of $30 before the end of 2017. It aims to reach the lofty heights of $100 by April 2018, and then a humungous $150 before it gets to trading on Bittrex by July 2018. Finally, they expect it to reach $200 by August 2018 by which time they will be issuing ECH debit cards and that brings us to the end of the ECH roadmap. Incidentally, the BCH roadmap ends in November 2017 and we are almost there and the value of BCC stands at roughly $200 right now. Isn't that an incredible coincidence? The $200 mark seems to indicate the high water mark of these projects, that seems like an ominous sign for BitConnect.
They also aim to reach a top 20 position in the Coinmarketcap.com list. Guess where BitConnect is on the list now? Yep, in the top 20, in fact, it's at number 9 as I write now.
Too good to be true returns
Monthly returns of ~50% on capital sounds too good to be true and is likely to be. I know, I know BitConnect and other projects have given similar returns, but will they last? There's good reasons to suspect that the incredible returns will at least be partially if not substantially supported by entry of new money from referrals. That is just the way these schemes work.... for a time.
The million dollar question...
Despite BitConnect running successfully for almost a year, the project is continually dogged by allegations of it being a scam and that it will disappear soon with investor funds in what is known in the industry as an exit scam. It remains to be seen how much longer it will last. The strange thing is, such is the strength of the "business" model, BitConnect may stick around for some time yet but perhaps go into a long decline rather than straight popping of the balloon.
Based on the many similarities between these projects, and the timing of various elements of them such as the way that BitConnect roadmap ends just as the EthConnect one starts, I would conclude that EthConnect is almost 100% a rerun of BitConnect possibly by the same people and with the same goals and game plan.
So the million dollar question is, should you invest?
Well, clearly lots of people have invested into BitConnect and made a fortune out of it. Could you do the same with EthConnect? Quite possible, especially if you get in early. But something just doesn't smell right about it so I'll leave it up to you to make the final decision.
At the end of the day, there's no reward without taking risks. Go into the project with your eyes wide open and be prepared to lose everything you invest. If the project turns out to be a winner, then great. If not, then at least you knew going in that you might end with zero.
Thanks for reading
I hope you have enjoyed this article and maybe it has helped you to size up the EthConnect ICO. Please upvote and resteem if you like this.