EthConnect – Is This Another Ponzi Scheme?

There are many new cryptocurrencies which cropping up and EthConnect is one such cryptocurrency which is making waves and generating quite a bit of excitement. EthConnect runs on the ethereum blockchain rather than Bitcoin.

Hence, it would be interesting to know more about it.

It certainly will help customers and investors to find out more about the pros and cons of EthConnect and help them to take a decision based on facts and actual happening on the ground.

It is evincing quite a bit of interest because of the simple reasons that it promises 8% signup bonus. Apart from the above there are other reasons too which go a long way in making it is a highly interesting cryptocurrency ICO offer. Hence, it would not be a bad idea to learn more about it over the next few lines and go through a comprehensive Ethconnect Opportunity Review.

What Is This ICO All About

There are reasons to believe that there are a few things special as far as EthConnect is concerned. It has quite a few similarities to a previous bitcoin offer which came into the market. The name of that offer was Bitconnect. I already reviewed Bitconnect in this blog post.

ethconnect review

While there are quite a few things similar when compared to EthConnect there are some additional features which perhaps make it bigger when compared to Bitconnect. The strategy being adopted by both is the same. You have to deposit money and the money goes into their lending system. They will make use of the funds and put them in trading bots to make a profit of around 1 to 1.5% per day and a part of the profits so generated will be used to pay back dividends to the customers and investors.

What Makes It So Attractive

There are a few things which go a long way in making EthConnect quite attractive. The prospect of being able to generate compound interest on the initial investment is something which makes it special and different. When we look at the history of Bitconnect there are reasons to believe that it is a strategy which has worked. Today Bitconnect has a market capitalization of around 1.5 billion dollars which is impressive to say the least. As far as EthConnect is concerned, even a small market share of around 50 to 100 million dollars will be quite impressive. If this happens, it will push the EthConnect token to a price range of $12.50. This will lead to a 25 times growth on the initial investment.

Will It Actually Happen

It is too premature to tell whether EthConnect will turn out to be a success or whether it will become a big scam. However, if one looks at the track record of previous such ICOs there are reasons to believe that investors can expect good returns. The payments of other such previous cryptocurrency offers have been quite good and regular with no defaults. Many of them have posted impressive growth stories and some have grown from 85 cents to more than $50. This certainly is a big gain for investors and those who are ready to take some calculated risks might stand a chance to make some big money. However, at the end of the day there is no denying the fact that anything related to cryptocurrencies involves risks and the same is the case with EthConnect

What Are People Saying About EthConnect

After doing some research online there are mixed reviews and opinions when it comes to EthConnect. There are a few reviews over at https://steemit.com with some literally calling out the new iCO as a scam. The top review on Google is from http://nobsimreviews.com which also calls it out as a ponzi scheme.

EthConnect – Some Areas Of Concern

It would be pertinent to mention here that though the investment returns are quite attractive, there are some grey areas which one needs to take into account.

The entire thing works on referral and the team is built on referrals.

Though the initial payout is 8% on the invested amount, it is not certain as to how long the pyramid like structure will last.

This is because there is no product or service and it is only about enrolling more members who are supposed to invest money in ICOs and buy tokens.

The tokens will fetch returns for the investors and the returns which are being promised are astronomical.

However, there is a distinct possibility that the pyramid will not grow beyond a point.

When this happens, it is quite possible that those who are at the bottom of the pyramid/ponzi will not get paid and they could end up suffering huge losses.

Those who are into top would have made their money and it is likely that they might shut shop and leave others high and dry.

Hence, at the end of the day, while returns are good and exciting, there is risk involved in the absence of concrete products and services and also given the fact that it is built on a ponzi / MLM scheme which has a dubious track record to say the least. At least this is how it looks to an outsider and someone with experience in the space.

BitConnect – Is It A Ponzi Scheme?

There are mixed views about BitConnect. When some believe that it is a Ponzi scheme, others find it a profitable trade. You cannot reach a conclusion without knowing what exactly it is and why it has received many negative reviews.

bitconnect logo

What is BitConnect?

BitConnect is a trading company. It has received much hype. Some investors believe that it can offer you the desired profits with the right investment. But the reality might be different. The company has a self-regulated financial system. It allows the users to invest and to get a percentage of the profit of their invested money. The company claims that the investors can get forty percent returns on the investments each month when they will invest in the BitConnect coin.

The guarantee returns claimed by company inspire many to invest in this company. They find it rewarding and the profitable. But when you will get into the detail, you might feel that it is the right example of the Ponzi scheme.

Is BitConnect A Ponzi Scheme?

Yes, it is a Ponzi scheme. You can trade with this company with an investment. Moreover, if you want to trade on this platform, then you need to pay with dollars or Bitcoin. The BitConnect coin does not have any value outside the trading industry. That means your investment will be worthless outside the industry.

When a company claims to offer around forty percent returns on the investments, it needs to have enough fund to meet the promises. But the problem with the BitConnect is that it is totally depended on the investment of the traders. When the traders stop investing in this company, the company will not have the capital to offers returns to the existing members. If it continues for a long, the company will not survive. If you have invested a huge amount in the company, you will be at risk. You will not get your money back. Besides, there is no one who will be responsible for your investments.

The BitConnect is a company that existence depends on the investment of the new traders. The company can survive until the traders find it a lucrative option for the investment. The company will use the money of the new members to pay the old members. But when there will not be any new member, the chances of the survival will be less. As the result, the whole system will collapse and the investors might lose the millions.

There is no doubt that BitConnect is an alternative cryptocurrency that allows the members to trade on this platform alone. When you invest in this software, you will directly enter into the Ponzi scheme where your money will be used to pay the old members. More importantly, the company does not offer any trading option. It does not sell any service or product. It will offer the affiliate membership.

For this membership, you will have to invest. You can earn by bringing new affiliates to the platform. Your earning will mostly depend on recruiting the affiliates. If you will be able to recruit more members, you can earn a huge.

In addition, the company lacks some important information. There is no one who will be accountable for your investment. If you visit the official website of this company, you will come to know that there is no information about the owner and developers. Without knowing the founders, you might not trust to invest a huge amount. If the company collapses for the above-mentioned reasons, you will not find anyone to claim your investment.

Conclusion – Ponzi?

From the above detail, it is clear that BitConnect is a Ponzi scheme. It is not a perfect trading software. A trading software comes with clear objective. It also offers the relevant information about the founders to win the trust of the people.

In BitConnect, the registration will be free and you will have to invest if you want to earn. Moreover, your profits will depend on the investment of your recruited members.

Besides, the company does not have a regulated body to monitor the activities. It lacks all the relevant information as well. All these factors create doubts among the new investors. Therefore, you should think twice before investing in this platform.

Another cryptocurrency scam has launched known as EthConnect – I will share my review soon