BitConnect, a Pyramid Scheme That Has Collapsed

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Beware of the NEOConnect Pyramid Scheme

We have seen a fair few new currencies and tokens launch throughout 2020. Not all of these ventures are worth investing in or even legitimate to begin with. A few companies have cloned the BitConnect scheme, by the look of things. After ETHConnect, we now have NEOConnect as well. This situation is slowly getting out of hand, as many people will eventually lose a lot of money. Always do your own research when it comes to new projects like these.

Should we Trust NEOConnect?

The most obvious answer would be “no, absolutely not”, even though that is a biased response. A lot of people claim BitConnect and ETHConnect are Ponzi schemes as well, yet others continue to make money with them. OneCoin is also known to be a major pyramid scheme, yet there are people out there who make their living off it. Whether or not NEOConnect falls into this category remains to be seen, even though it is highly likely that is the case.

When something comes along that sounds too good to be true, it often is. In the case of NEOConnect, everything screams this is a pyramid scheme waiting to collapse. Its team claims to have created a lending platform connected with the NEO ecosystem. If that were the case, they could have just used the existing NEO currency rather than create another token to mimic the real thing. Then again, without a native token, the creators of NEOConnect would be unable to earn a lot of money in the process.

Surprisingly, the creators of this project have stated that holders of their token will not earn a lot of money quickly. Instead, investors will earn money over the long run. It may even be an honest pyramid scheme, as the early investors will certainly benefit from more people falling victim to this scheme over time. Those who buy in later on – knowing all too well they really shouldn’t – will be the ones failing to earn much in the way of money. So far, it appears it would be best to avoid this scheme altogether, yet everyone will have to make up their own mind in this regard.

The NEOConnect website itself doesn’t instill a lot of confidence either. It looks as if a thirteen-year-old put together this website and typed out a few sentences in broken English. Any program that claims one can earn substantial interest on one’s investment should be scrutinized first and foremost. No one will give out money for free, yet that seems to be exactly what is going on with NEOConnect right now. It’s a very worrisome business model, as a lot of people will be lured in by these empty promises.

Similar to BitConnect and ETHConnect, NEOConnect will serve as a proof of stake token which cannot be mined by anyone. All users need to do is store NEC in their wallets to earn interest after eight days. There is also a brief roadmap on the website, indicating that a security audit will not occur until next February. That is the same point by which the tokens will supposedly be tradeable on a lot of smaller exchanges. The team also hopes to partner with Visa or MasterCard, which will never happen.

It is abundantly clear that currencies such as NEOConnect need to be avoided at all costs. There is nothing legitimate about this token or its promise that investors will make money. There is no real business model other than the lending aspect, yet there are established methods of lending cryptocurrency which don’t require a new token to be created out of thin air. It will be interesting to see how long it takes for NEOConnect to blow up.

Singapore govt refers to OneCoin & BitConnect as Ponzi pyramids

In a May 25th press-release addressing digital tokens, the Singapore government has singled out OneCoin and BitConnect as Ponzi pyramid schemes.

After fleshing out what digital tokens are, the government moves on to “What else could jeopardize my digital token investment?”

Your digital tokens are stored in a digital wallet. Similar to digital token intermediaries, the digital wallet could be hacked.

You could lose all your digital tokens as a result.

On top of that, fraud has already occurred with companies that claim to offer digital token-related products and services.

Initial coin offerings disguised as Ponzi schemes are not uncommon.

Platforms like OneCoin and BitConnect have been shut down for their pyramid schemes, with BitConnect’s price crashing from $452 to $9.

Other fraud cases see pump-and-dump maneuvers, where the price of a digital token is artificially inflated by insiders through false and misleading exaggerations.

When the price reaches a feverish peak, these insiders then cash out en masse, all at once, leading to a price collapse.

Finally, there is also the risk that you may not be able to exit your digital token investment easily.

There may not be enough active buyers and sellers in the secondary market for digital tokens. You might never get the chance to cash out and liquidate your investment.

OneCoin launched in late 2020.

The Ponzi scheme allowed investors to withdraw subsequently invested funds up until January 2020, wherein ROI withdrawals were permanently suspended.

Internally that signaled a drawn-out collapse over the past fourteen months.

Most of OneCoin’s management and top investors have already cashed out and moved on.

BitConnect surfaced in late 2020 and was the first MLM ICO lending Ponzi scheme.

By late 2020 the scam was on its last legs, prompting BitConnect’s owners to cash out and go into hiding.

BitConnect collapsed a month later in January 2020. Over ten days $2.4 billion was wiped off of BCC’s publicly traded value.

Sadly despite MLM Ponzi schemes like OneCoin and BitConnect causing consumer damages running well into the millions, the Singapore government isn’t interested in regulating them.

Digital tokens are not regulated because they are not issued by the Singapore government and are not legal tender.

There is no legislative protection for those who lose money from investing in digital tokens.

Instead they’ve adopted a “fingers in our ears, not our problem” approach.

Because y’know, that’ll protect Singaporean consumers from MLM crypto scammers.

Related Posts:
  1. OneCoin promoters arrested in Singapore, regulatory warning – Apr 10th, 2020
9 Comments on “Singapore govt refers to OneCoin & BitConnect as Ponzi pyramids”

More work for the Chief Excuse Officer Igor Krnic.

Probably something in the lines of “OneCoin is not a pyramid scheme, I have already shown this, and we have not been shut down! Haters lie again!” ��

And what does Ruja’s Chief Excuse Officer Igor Krnic write about the fake portal onecoinico.io?

onecoinico.io site is no longer viable because investigation usurped all. But they will test the new platform and maybe release this offering after all.

But all will be known in time. For now, do not watch that website at all. After all, it was never advertised officially, we know it only because network buzzed it.

At this point, anyone pumping OneCoin is probably just putting gullible victims money in their own pocket and leaving town, right?

I feel sure there are no more wire transfers or banks to handle transactions. Is there still any viable “con-pany” infrastructure?

The OneLife NEWSLETTER told to go to onecoinico.io for more info?

So if you spit gum on a side walk over there it’s serious punishment but stealing millions is fine lol.

The OneLife NEWSLETTER told to go to onecoinico.io for more info?

I confirm with 100% certainty that this is the case indeed.

A special “Important Network Updates” newsletter was distributed by the scam company end of October 2020:
NOLINK://mailchi.mp/53a4cbd06ad6/jxkey6m9c9-701109?e=[UNIQID]

The last week of October has brought many new updates for the network. The OneLife system has reorganized its educational content, the free promo tokens for request will be decreasing gradually over the course of the next year and there will be OFC PACKAGES offered on onecoinico.com

What does this mean for the Network and useful information please find HERE

*Read more about GGI Coin Offering HERE

This news item contains two hyperlinks to PDFs:

OneLife Network Updates:
NOLINK://gallery.mailchimp.com/cf9659fd672fe664d487e7e1b/files/eb03ca51-ab0c-4f06-95f4-bc8b472435ae/OLN_Info.pdf

About the GGI Coin Offering:
NOLINK://gallery.mailchimp.com/cf9659fd672fe664d487e7e1b/files/84c22919-847d-464d-875d-44ec0685cea1/GGI_CoinOffering_Info.01.pdf

Due to the increasing popularity the company receives many questions related to the onecoin cryptocurrency. Now that Golden Gate Investment is offering OFC packages to users globally are members of the OneLife Network eligible for any bonuses, related to referrals?

According to the Company policy, OneLife members will continue earning the respective BVs for referring and sale of the packages.

The Disclaimer is quite hilarious as well:

Please be aware at all times that the OneLife Network is not engaged in offering OFC packages and does not act as a representative of Golden Gate Investments, therefore the OLN Members are not to be considered as endorsed distributors of the GGI Offering.

The presented data does not constitute legal advice and prospective participants are encouraged to consult with an attorney prior to participation. Data provided here is for informational purposes only.

The OFCs mentioned are not in any circumstance designed as investment instrument, security or other similar financial instrument and are not liquid.

OneLife is not in any way acting as broker, dealer, exchange intermediary. OneLife has no obligation whatsoever to repurchase, refund or re-acquire the OFCs sold.

OneLife network IMAs are not endorsed distributors of the GGI offering to sell or promote any Golden Gate related packages on behalf of Golden Gate Investment

So “CEO” Igor Krnic again proves that he is a lying con-artist.

@Otto and @ConExpert

You should not doubt what the Chief Excuse Officer writes in his lies and fairytale forum! I believe everything after reading this on his no-onecoin-debate:

All accusations against Onecoin deeply answered with objective arguments

We will deeply analyze, dissect and answer everything with objective arguments.

Since the Serbian dream dancer has blocked all critics in his “forum”, only objective lies and fairy tales are being spread there.

Actually, I only know this procedure from dictatorships without any freedom of expression…

Igors first attempt at internet truth (from wiki talk, ile let you guess which article he wants to fix :))

Semi-protected edit request on 29 June 2020

I am part of onecoine multilevel network (now onelife.eu) for 3 months now, and I am very educated in this matter, what we do, what we want to achieve and I find this article very poorly written by educated person and all sources are only blogs ran by anonymous people that are attracted to write bad about onecoin just so they can sell ads and they really like onecoin because it is so popular for so short time.

I care about onecoin and onelife, it changed our life and lives to many people, so I would like yo edit this article so it will reflect true about onecoin and onelife network.

If you decline this, I will just open new true onecoin article. Thanks ahead.

Igorkrnic (talk) 21:48, 29 June 2020 (UTC)

Not done @Igorkrnic: As the note says: “State UNAMBIGUOUSLY your suggested changes. Other editors need to know what to add or remove.”

Any attempt to create a new article will be seen as a violation of Wikipedia’s policies (see WP:POVFORK). Instead, you must attempt to build consensus here.

The way to do that is by making specific suggestions, not vague insinuations, and do not make threats to ignore policy and disrupt Wikipedia.

Grayfell (talk) 21:57, 29 June 2020 (UTC)

Igor Krnic, the missionary and philanthropist, wants to bring happiness and wealth to all people in this evil world:

Where will this disinterested patron hide after 8 October? At the North Pole? At the South Pole? Or in a hole like Saddam Hussein? ��

Bitconnect Abruptly Shuts Down, Crypto Currency Collapses; BCC Holders On Suicide Watch

Content originally published at iBankCoin.com

Crypto currency Bitconnect (BCC) plunged from $321 to a tad over $35 today, a drop of more than 86% after regulators from state authorities issued cease and desist letters for unauthorized sale of securities. That’s right. Just because your shit is on the blockchain, that doesn’t mean you get to solicit your fucking Ponzi scheme to people in America. State regulators will have something to say about that.

Via the company’s website, as per the reasons for shutting down.

The reason for halt of lending and exchange platform has many reasons as follow: The continuous bad press has made community members uneasy and created a lack of confidence in the platform.

We have received two Cease and Desist letters, one from the Texas State Securities Board, and one from the North Carolina Secretary of State Securities Division.

These actions have become a hindrance for the legal continuation of the platform. Outside forces have performed DDos attacks on platform several times and have made it clear that these will continue. These interruptions in service have made the platform unstable and have created more panic inside the community.

Price action. What did Bitconnect do? They quite literally ran a Ponzi scheme. Look at one of their brochures, promising investors 40% returns, PER MONTH.

Via Tech Crunch:

Many in the cryptocurrency community have openly accused Bitconnnect of running a Ponzi scheme, including Ethereum founder Vitalik Buterin.

The platform was powered by a token called BCC (not to be confused with BCH, or Bitcoin Cash), which is essentially useless now that the trading platform has shut down. In the last The token has plummeted more than 80% to about $37, down from over $200 just a few hours ago.

If you aren’t familiar with the platform, Bitconnect was an anonymously-run site where users could loan their cryptocurrency to the company in exchange for outsized returns depending on how long the loan was for. For example, a $10,000 loan for 180 days would purportedly give you

40% returns each month, with a .20% daily bonus.

Bitconnect also had a thriving multi-level referral feature, which also made it somewhat akin to a pyramid scheme with thousands of social media users trying to drive signups using their referral code.

The platform said it generated returns for users using Bitconnnect’s trading bot and “volatility trading software”, which usually averaged around 1% per day. Of course profiting from market fluctuations and volatility is a legitimate trading strategy, and one used by many hedge funds and institutional traders.

But Bitconnect’s promise (and payment) of outsized and guaranteed returns led many to believe it was a ponzi scheme that was paying out existing loan interest with newly pledged loans. The requirement of having BCC to participate in the lending program led to a natural spike in demand (and price) of BCC.

In less than a year the currency went from being worth less than a dollar (with a market cap in the millions) to a all-time high of

$430.00 with a market cap above $2.6B.

Lenders into the Bitconnect Exchange have revealed the company is closing out accounts, issuing BCC in exchange for their dollars — which is causing the price to plummet.

Bitconnect is officially closing up. They sent me 33 BCC for my $11k+ in loans. Worth $6600 and dropping by the second. Their exchange is down so the only option is to send the BCC to an external exchange.

Was too late getting BCC to an external exchange. Price has already plummeted. $11k now worth less than $100. They pulled a good one by letting us believe they were doing the right thing. Paying us back BCC that is now worthless. Should have known better I guess.

Over on Reddit, there is a subreddit dedicated to this Ponzi scheme, which has just gone private — likely due to an influx of schadenfreude. Suicide watch is in effect. This just about sums it up.

And then there’s this guy — popular Youtuber, Trevor James, who rose to fame because of Bitconnect, telling people he’s buying Bitconnect now at these prices. He has since taken down that video and is in hiding.

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