The Truth About Bitconnect

The Truth About Bitconnect

Bitconnect is, or should we say was, a Ponzi Scheme. Although this simple fact appeared obvious to most of us, there were just as many it seems who couldn’t quite accept this reality. But then again when your life savings are invested in something which you were told will make you rich beyond your wildest dreams the human mind has the tendency to protect this ‘false’ reality by dismissing the truths being laid out before it.

So in a nutshell Bitconnect lured people into it’s scheme using the promise of a 1% daily return on investments, this alone is enough to raise warning bells in anyways head, isn’t it?

This 1% return on investment is achieved through a magical, fantastical trading bot which nobody has ever seen in action or been able to prove its existence. This bot profits from Bitcoin volatility, which is of course total nonsense.

The following is taken from their website prior to the lending services being withdrawn:

“You can invest BitConnect coin in Bitconnect lending platform exclusively from the BitConnect Dashboard. This investment option involves profiting from Bitconnect trading bot and volatility software. You will receive daily profit based on your investment option. Upon investment term completion, you will receive your CAPITAL BACK to take out from the Bitconnect lending platform or optionally reinvest back in lending platform to continue receiving daily profit.”

Although this alone is all you need to know to keep well away, there is more and this is the real giveaway to the scam.

Pyramid Scheme

Bitconnect used an intensive affiliate marketing scheme, it was your typical MLM (Multi Level Marketing) setup. Bob refers his friend Tony, Bob receives a percentage of what Tony invests. Tony then signs up his wife Sarah, Tony receives a percentage of his wifes investment and Bob also receives a slightly smaller percentage of Sarah’s investment.  This pyramid scheme always allows only a small handful of people at the top to become exceptionally wealthy, while those below the second tier of the pyramid will generally be out of pocket.

In a pyramid scheme, an organization compels individuals who wish to join to make a payment. In exchange, the organization promises its new members a share of the money taken from every additional member that they recruit. The directors of the organization (those at the top of the pyramid) also receive a share of these payments. For the directors, the scheme is potentially lucrative—whether or not they do any work, the organization’s membership has a strong incentive to continue recruiting and funneling money to the top of the pyramid. – Wikipedia

Scum Rises To The Top

In just about any Pyramid scheme such as Bitconnect you will always have some pretty shady characters at the top. These individuals generally lack any moral bone in their body and would steal their own grandmother.

Glenn Arcaro

Glenn claims, or is that claimed to be the US National promoter of Bitconnect, whatever that means. Up until recently you would of seen many video’s on Glenn’s Youtube channel pushing the Bitconnect Scam – not any more. All videos relating to Bitconnect were deleted prior to the recent news that Bitconnect were closing down their lending platform. You can find Glenn also on his Facebook, Glenn is suspected to be the founder of Bitconnect by many, however I think it’s more likely he was just an early adopter of the scam. Glenn propped up Bitconnect and tried to legitimise it to the public by registering Bitconnect at Companies House in the UK, many other have also attempted this in an attempt to make the lies they feed appear more like truth.

Glenn has been contacted about his involvement by many people within the crypto community, however he generally hasn’t responded – until now it seems (now that he’s wanted for his part in the Ponzi Scheme that is):

It’ll be interesting to see how well Glenn lives AWOL now, this video is one of the few left up on his Youtube channel, where he talks about living how you want to live. Which I guess is a whole lot easier when you have millions of dollars of other people’s money:

Craig Grant

By the far the worst actor in the Bitconnect Ponzi was Craig Grant, if your a regular crypto youtube watcher you will undoubtedly of seen Craig Grants Bitconnect Videos. “Hi i’m Craig Grant and this is my Bitconnect Wallet……..” – The shot would then zoom in on his Bitconnect Wallet which generally had at least 100 Bitcoins in.

Craig Grant knew absolutely nothing about Cryptocurrency, he was and still is a fraud with only one goal in mind, ripping others off for his own gain. Now, is Bitconnect is first scam?

The following post on Steemit covers this story in more depth, details are vague however it’s clear that Craig Grant somehow was mixed up in this scam

Craig Grant was known as a porn site administrator by the name of “Sercee” and apparently her girlfriend @Yuliana , has a past of doing a Russian-marriage scam, where she lures a married man to fall in love with her, just to blackmail her victims and threatening to tell their wife’s , destroying their marriage in the process, just google Russian marriage scams.

 photo 325695_zpsovnphudd.jpg

Quote from Craig Facebook account.

”$5000= Nigerian Scammers so all the work to get this ball of magic money rolling, using the pictures I took of Yuliana over the past 10 years. They are in Africa, so of course by the time the energy reaches Florida it is falling from the sky, and we do no work…just get PAID…about $50,000 gets sent to Africa before we see $5000 and that’s great.”

Trevon James

Although from what we can find, Trevon has no major previous involvement in scams, but he certainly does now. Trevon begun as a Youtuber just trying to gain an audience and profit from the mass rise of interest in Cryptocurrency. Then he latched onto Bitconnect and from then on every single video was pushing Bitconnect down it’s viewers throats.

Trevon claims and acts like he knows something about what he talks about, he doesn’t – his knowledge on Cryptocurrency and Blockchain is minimal as you will of realised if you’ve ever watched his trash.

Crypto Nick

Now Crypto Nick, is a self proclaimed millionaire at 18, he has a successful Youtube channel where he looks at the daily Crypto markets and then shills for Bitconnect. Nick is one of two things, Naive and wrapped up in the wealth that Bitconnect has brought his way at the expense of his viewers or alternatively as deceptive as the previous two scammers. I’d like to think Nick was just young and possibly got sucked into something which he didn’t know how to get out of, but i’m probably wrong – I just like to try and assume the best in people.

Regardless, CryptoNick offers nothing to the Cryptocurrency space, his content has always been trash and his lack of any understanding on Cryptocurrency and Blockchain is baffling, surely if you don’t even know what a ‘Public Key’ is you shouldn’t call yourself ‘CryptoNick’?

Don’t Worry If Your Holding Bitconnect Tokens – Invest in the BitconnectX ICO

Yes, I kid you not. Those pioneers in economic development and wealth equality may of screwed up thousands of peoples lives with Bitconnect, but they are offering an olive branch for all those that are suffering. That’s right, the team (who ever that may be) behind Bitconnect are back with a brand new project, BitconnectX!.

Those holding Bitconnect BCC tokens can participate in this ICO, those lovely folk over at Bitconnect will also accept the tokens at a higher rate then the current market value (which shouldn’t be too hard).

I’m finding it hard to believe anyone will invest in this nonsense, but then again desperate people do desperate things. This could possibly be just one last attempt at draining what little is left out of an already destroyed user base.

In our opinion the closure of Bitconnect was not planned to be as soon as this. It would seem likely that the BitconnectX ICO was intended to be finished before the closure of Bitconnect services. The sudden closure was likely due to the downturn in the Cryptocurrency markets as a whole. It would seem the markets forced them into exiting the scam while good profits could still be made, sacrificing their next scam in the process – BitconnectX.

Craig Grant, Trevon James and CryptoNick are attempting to convince us that the Bitconnect news was good news and that anyone holding BCC tokens should hold them, but this is just the words of scammers and delusional teenagers. If I held a BCC token, which I never have – i’d dump it.

Moving On

For many out there they will be struggling to move on from this, judging by the reddit threads many of you out there invested your life savings and remortgaged your house for this scam. These people need to tell their loved ones if they haven’t already what the mistake they made, it is truly devastating for you, however if you can put it in perspective for a moment, it may not be as bad as you first thought.

Investors aside though, as a community we need to learn from this. When we look at something and we think it is a Ponzi Scheme, when we see the likes of Criminal dimwit Craig Grant pushing this trash down the vulnerables throats and suspect the worst, we need to be more sure of  our initial convictions and be more  outspoken on our feelings on the matter.

People like Glenn Arcaro, Trevon James, Craig Grant and CryptoNick need to be ousted from the Community, people like this exist in every walk of life and where found they should not be welcomed. Unsubscribe from their channels and forget about them.

We’ll leave you with the following video from Doug Polk Crypto who has been calling out Bitconnect and it’s pushers for sometime:

Ledger Nano S - The secure hardware wallet

2018-01-21T09:30:24+00:00

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