I bought my first lending contract for 100$ in 2017-06-30 and then bought another one for 230$ in just 2 more days.
I must admit I was blinded by those interest rates and their daily payouts. I was planning to invest 10k, but due to Hive account@thegrinder and his post The BitConnect scam exposed I've done some digging.

Hive account@thegrinder's article is a bit old and some things might have changed since then, but I will try and tackle every point of his.

1. Bad English and why it matters

Personally, I don't buy this because:

• first of all ... they fixed that
• second ... I am a software developer and can tell you from experience: this things happen and get unnoticed for ages even though you have at least 3 people checking that page before release (designer, developer, code reviewer, tester and the list might go on).

2. Too good to be true

I thought that myself before seeing this article: What you must know about your bitconnect investment by Hive account@henry-gant

Indeed that guaranteed, risk-free interest per year is fishy, but everyone must understand that this is a win-win situation.
The user pays with his BCC (at bitconnect exchange rates) to lend a certain amount of dollars. Based on the amount the user lends, after 120 - 299 days he gets his DOLLARS back (not BCC). Both the capital release and the daily interests are payed in dollars. And those dollars are "trapped" there as bitconnect platform does not offer you the possibility of withdrawing dollars. You can only withdraw BCC or BTC. So, to take your dollars off the platform you need to exchange them once again into BCC (this is mandatory). This is the reason to why they have their own exchange embedded in the platform, to force you to buy BCC before you leave, obviously at a much higher price.

The interest rates are very impressive, but keeping in mind the 25x growth of BCC from March until now (less then 5 months) we can see that the biggest winner is in fact bitconnect when it buys your BCC coins at the beginning of a lending contract and then you're forced to buy 25 times less BCC with the same amount of dollars.

3. Suspicious business practices and how the scam works

1. They now accept BCC deposits
   I think I already answered points 3.2 and 3.3
2. Except for the lack of decentralization ... this is what worries me the most
3. I don't believe this is true as you can buy BCC from other exchanges and then deposit them on bitconnect. I think the price is driven by demand.

To recap: They attract users by promising amazing returns on their investment - TRUE
They artificially increase the price of their crypto by tricking users into buying it with Bitcoin and giving it back to them, along with the Bitcoin - FALSE
They pay back the interest to their users from new investments - NOT ONLY
When their profit is maximized, they sell all of their artificially inflated currency(7000%+ since release) and Bitcoins and disappear - POSSIBLE, BUT I DON'T THINK SO

Hive account@thegrinder did raise a big red flag and we all appreciate that. If you read this, man ... I hope you're not offended. I'm curious if you changed your mind even for a little bit, now ... after 3 months from writing your post?

I don't have any other connection with bitconnect except the one described in this post. In fact these leads me to another reason for doubting this platform: I didn't see, hear or read of any official representative taking stand for Bitconnect.

This is not financial advice, I'm not encouraging anyone to invest in lending contracts on bitconnect (or not more than YOU afford to lose).

My referral code is: not to be disclosed ... as there is still a pretty big chance this is a scam.

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