As cryptocurrency gains traction in the mainstream media, many are flocking to new projects in search of great investment opportunities. The new trends of projects are lending platforms that offer investors daily returns. These lending platforms claim to have a trading bot that invests your money without the emotion a human would have. Platforms like BitConnect, Davor Coin and many more have left numerous investors broke with useless tokens.
BeConnect is a lending platform that claims to pay investors 56% returns per month for lending their coins. From the name to how it functions shares similarities to the infamous BitConnect lending platform. They claim users will earn income from their “BeConnect trading bot” to earn profits daily on their platform. BeConnect also claim users can earn money by staking, trading, mining and recruiting for their affiliate program.
“The BeConnect Coin is an open source digital cryptocurrency offering a trusted and reputable lending platform leveraging on the Ethereum ecosystem.”
Token Distribution Problems ❗❗
One of the things I look for when considering an investment opportunity is first reading the whitepaper. In BeConnect’s whitepaper it shows the distribution of tokens during the ICO.
As stated in the whitepaper the investors are only able to buy 10% of all the tokens in circulation. That means the BeConnect platform will be in control of 90% OF ALL THE TOKENS IN CIRCULATION!! This is absolutely ridiculous. I have never seen an ICO keep that much for themselves. This is a BIG red flag 🚩 for me. How can a company ask investors for all the startup money and keep 90% of all the tokens. So while using our funds to finance their platform; we are only able to get 10% of the tokens collectively.
No Website??? 😱😱
Now this is just lazy. How can you call yourself a company and have the nerve to ask investors for their hard earned money and you can’t have a functioning website. As of writing this the website has been down for hours and is just unacceptable for a “reputable” company. This is a first for me where a company’s website is actually down. This is another red flag 🚩 for me again. Websites are very cheap and I have seen their website before and it was a simple website. So far this isn’t looking like a good investment.
Road Map Issues ❗❗
There are 2 major problems with this road map that I want to point out. For one, the company is projecting the price of their coin at different times of the year. This is another 🚩 for me. No one can accurately predict the future price increase or decrease of a token. I have never seen an ICO (legitimate) predict the value of their token. I assume they don’t do this for not only legal reasons; but they don’t want to misinform the investor. By putting price projections on the road map, you are essentially telling the customer the price will hit that value at that time. This is impossible to do, and I feel BeConnect is wrong for this. I feel they are doing this to trick amateur investors to think they are getting a good deal at $.50 USD.
Secondly, on the road map it states that BeConnect will be trading on Binance September 2018. How do they know they will be listed on Binance? This is another odd thing I found on this road map. Each exchange has different requirements for being listed on their exchange, so how can they know they will be on Binance? I looked up how a coin is listed on Binance and I found a LinkedIn article (<https://www.linkedin.com/pulse/binance-listing-tips-changpeng-zhao/)
by Changpeng Zhao, the founder of Binance. In the article he stated what they look for in a potential token being listed on their exchange. While reading this article I found some things that made me more skeptical about BeConnect. Here are some things Binance forbids from potential companies wanting to be listed on their exchange:
“We do not accept teams who publicly speculate on price or make predictions or forecasts on their token’s price.”
“We do not accept teams using the Binance name for their gains without our consent. These include guys who say they “will list on, targets to be on, is a partner of” Binance without our explicit consent, in the hope to boost their credibility and coin price.”
“We do not allow teams disclosing they will get listed on Binance until their coin starts trading. If this info leaks out, we will put the listing on hold, possibly indefinitely.”
“Going forward, we won't tell core teams when we will list their coin. So if someone makes a claim they will get listed on Binance, you can be sure it is fake.”
No Development Team Info ❗❗
In my FREE E-Book, V. Bey’s 7 Tips on Crypto Investing, I explain the importance of researching the team of any project you want to invest in. Unfortunately, BeConnect does not give you that opportunity. They do not list on their website (when it was up) who is a part of their development team. They also don’t list CEO, Marketing Director, nothing. Let me ask you this, would you invest in a startup without knowing who is actually running the business? Wouldn’t you like to know their credentials and experience and how they will use that give you a return on your investment? To all those who swear BeConnect is legitimate; why won’t they put their name on it? Usually ICOs will have a list of team members and a brief summary of their experience right on the website. The website would also have links to each team members social media so you can verify the information given to you. BeConnect has none of this so if you weren’t convinced this was a scam before I hope you are getting the picture.
The cryptocurrency space can be a lucrative one, but human history has shown us that where there is money there are scams. Not every project is going to be a good one, and we as investors must protect ourselves and the space. If we educate ourselves and do a little research we can stop these scammers from ruining such a great space. Cryptocurrency will never be a mainstream thing if we allow companies like this to steal money from new investors entering the market.
Thank you for taking the time to read this, I hope it was informative and slightly entertaining. What do you look for when you are about to invest?