BitconnectX is a scam or not? Many have labelled it as one, but is that being too harsh or is it simply the truth. Is BitconnectX a real investment opportunity or just another crypto Ponzi scheme?
Let’s take a closer look and find out…
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Company Name: BitconnectX
Owner: Bitconnect
Price To Join: Varies
My Rating: 1/10
~ BitconnectX Review ~
What Is BitconnectX?
BitconnectX has been copping a lot of flack of late with accusations flying around about it being a Ponzi scheme and not a legit cryptocurrency investment like the scheme owners make out. The reason being is that the original version – Bitconnect – was a scam and a Ponzi scheme, so is the new version just the exact same thing?
BitconnectX isn’t just a scheme, its also its own cryptocurrency, just like Bitcoin, although not nearly as valuable. On the new improved platform you’ll be able to both mine coins as well as horde coins in the bid to make a profit.
Apparently there is a 49 million supply of BitconnectX coins globally. However, apart from a few numbers, there is not a hell of a lot of information out there about the BitconnectX coin.
While BitconnectX is claimed to be a legitimate ICO offering, because the previous version was nothing but a Ponzi scheme, people are also suspicious that this new version has simply been launched to continue where the original Bitconnect left off, and that BitconnectX is also a Ponzi scheme.
What is a Ponzi Scheme?
Generally a Ponzi scheme works on a MLM pyramid structure. However, what’s different about a Ponzi scheme compared to a traditional MLM operation such as Amway, is a Ponzi scheme won’t have any actual products and relies entirely on the injection of new investor money to keep the scheme afloat. It’s this new money that is used to pay the profits of previous investors, and as soon as recruitment slows or dries up, the entire scheme collapses.
The original Bitconnect was a classic Ponzi scheme that used the popularity of cryptocurrencies to get lots of interest. There are loads of these schemes doing the rounds. Social media is riddled with people promoting them. Some use regular money while others focus on cryptocurrencies, real or imagined.
Ponzi schemes will often pay out money to investors at the very beginning, as this makes the scheme look both real and profitable. As time goes by, however, those payments become mighty slim and hard to get.
The owners of a Ponzi scheme will set thing sup in such a way that they definitely get paid no matter what happens in the end. It’s a different story for the investors though. For them it’s a bit of a lucky dip as to whether they’ll make a profit or see any real money at the end of it.
The New BitconnectX
This newer version still operates on the same format as its predecessor did. There is the familiar pyramid structure, along with the urgency to recruit new people into the scheme so they can inject money into it.
There really is nothing about BitconnectX to assume it’s anything different to the original scheme. It’s operating exactly the same way. They’ve just dressed up the offering a little to make it sound like the company is actually offering a service for investor money as well.
Since its launch, BitconnectX has already received several cease and desist orders in a number of US states, adding further speculation that it is indeed yet another Ponzi scheme. There is also speculation that those investing in BitconnectX are simply having their funds syphoned off into the old Bitconnect Ponzi scheme to keep it going.
Target Audience
These schemes obviously target those looking to invest in, and make a profit from cryptocurrencies. Ponzi schemes (if this new version is indeed on), always promise very high returns on investment, but often are incapable of paying those returns the longer the scheme goes on. Things like BitconnectX also tend to attract those hoping to cash up big in quick time.
What I Like
- I can’t really come up with anything, because this sounds as dodgy as hell to me
What I Don’t Like
- It smells like a Ponzi scheme
- Likely it only exists to feed money into the original Bitconnect scheme
- Investing in Ponzi schemes is extremely risky
- The owners will always walk away with a bag of cash
- Investors will most likely walk away empty handed and lighter in the pocket
- If the previous version was a scam, why would the new version be anything different?
- Again the scheme is all about loaning digital coins, which is the core process of operating a crypto Ponzi scheme
How Much Does BitconnectX Cost?
The amount of investment varies. In the original scheme the starting figure to get involved was $100, with amounts going right up to a massive $100,000. It was all based on lending, which is simply the cover for the Ponzi scheme.
Is BitconnectX a Scam?
I wouldn’t outright say this new version (or even the old version) is a scam, because some people do make money, some do actually get paid. However, if BitconnectX is a Ponzi scheme, or just seeking new investors to keep the old scheme going, then it’s super risky sinking money into it, as the bubble could burst at any time, leaving everyone but the owners out of pocket.
Keep an eye on it maybe, but perhaps hold off putting your money into it just yet. Let the truth of the scheme reveal itself first.
Schemes like this one are a lot like gambling, so you might have better luck with this lotto system.
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Darren Burton
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