If it sounds to good to be true, it probably is. Gullible investors learned this simple lesson the hard way recently, as they poured their money into the next get rich quick scheme — BitConnect.
The skinny on the hustle
Lauded as a “self-regulating financial system,” BitConnects’ hucksters lured in thousands of people born just yesterday with catchy buzz words, hype and celebrity endorsements. They promised these same rubes an incredible 1% interest per day on their initial investment, a red flag that led more seasoned traders and investors to correctly label the platform a scam.
Do you want to make an extra $500-$1 Million a month?
Meh. Not really. I mean, sure, if you’re just going to hand it to me. Otherwise, it sounds like too much work…and I assume there will probably be mandatory socializing and Skype calls full of sales cheerleaders? Hard pass. I can already afford all the beer and cheeseburgers I need to survive.
Unfortunately, BitConnect’s victims are not so lazy and easily sated, so they fell for the oldest trick in the Multi-Level Marketing playbook.
The basic principle was that investors would lend other users micro-loans, funding for various projects made available after the investment was converted from BTC to BCC. Interest accrued on BCC varied, depending on how much stake the investor had in the platform, and how many people they referred to BitConnect — told you it was a Ponzi scheme.
BitConnect’s exchange closed in mid January, with all pending loans released, but all of them were converted to BCC instead of being exchanged to Bitcoin. The price of BCC at the time was $363.62. However, now that BitConnect’s shuttered it’s doors and the founders have predictably vanished, the coin is worth a whopping $0.67, rendering the currency effectively useless, and leaving investors high and dry. This is probably the biggest exit scheme ever pulled off in the crypto world.
A slightly less obvious scam: the legal system
You have the right to an attorney. If you cannot afford an attorney — and obviously you cannot — then you’re fucked.
That’s how the law “works” for real people. The system is built for, and run by, powerful synthetic people. Corporations, cartels, partnerships, shells, professional associations, unions, and government agencies are “the people”— the real people are the pawns.
Many of the victims duped by BitConnects’ smoothtalking hype hustlers are filing lawsuits against the platform. Of course, members of the legal monopoly don’t have to care about petty triflings like morality. BitConnect’s got the cash to put up a huge retainer, and to pay legal bills larger than the operating budgets of most companies, so the “best” lawyers and law firms are immediately available to them…for less than no questions asked.
Who are the real “Kingpins” of this underworld? Is it the high-level scammers on the weekend-to-weekend airport grind? Or is it the lawyers, the bankers, and the billionaire backers?
I’m only asking the questions because I already know the answers.
Don’t HODL shitcoins, and don’t fall for pyramid schemes simply because the pyramid has been arranged sideways. And FYI “funnel” is almost always code for pyramid.