So how does a company generate a monthly ROI of up to 40% trading an altcoin only its affiliates are interested in?
The answer is they can’t.
BitConnect can throw generated BitConnect Coins around at will, but the company can’t produce a monthly ROI in USD to pay affiliates with. That money is solely derived from subsequent affiliate investment, making BitConnect a Ponzi scheme.
the referral commissions serve as a recruitment layer, adding an additional pyramid layer to the scheme.
BitConnect affiliate recruitment of course ties into the value of BitConnect Coin, as new affiliates invest in BitConnect Coin (through BitConnect) and inadvertently drive up the price.
On paper this looks like public demand for BitConnect Coin, but it’s really just affiliates investing in BitConnect’s Ponzi scheme. The only reason BitConnect Coin is used is because BitConnect can generate them at little to no cost.
As with all Ponzi schemes, once affiliate recruitment dies down so too will new investment. This will see BitConnect starved of revenue and unable to meet its ROI obligations.
Being a variable ROI scheme, BitConnect’s collapse will be painfully slow. This gives the anonymous admins plenty of time to cut and run, whilst desperate affiliates are left in the lurch.
Firstly, that is all they pay people in (highlighted in red). Many open source cryptos pay people in their coins for all sorts of work.
Secondly, you have blatantly ripped off that whole post from the infamous MLM conspiracy theorist website behindMLM.com and unsurprisingly it's not only sensationalist but also factually incorrect.
If Bitconnect advertised higher returns they would be blamed far more, when they have obviously made far more profit in the growth of their coin (which they can accurately predict), than they have paid out in this daily interest. They are simply sharing this growth and guaranteeing investor deposit value (in USD).
Their coin has actually been doubling every month on average which is 100% monthly growth or more than double the interest rate they are paying investors who lend (before someone says this isn't sustainable, well obviously it is not but that is why their interest rate is variable).
There are many coins that pay staking interest and bitconnect coins (BCC) also pay those who stake their coin 8% per month which is another option for investors.
Finally, and this is
VERY IMPORTANT, it's a myth that any coin should be worth anything related to the value or profitability of the company who issued the coin. This is a very important thing to realise in cryptocurrency and that unless there is some payout linked to its own profitability (which is the case for bitconnect sharing the profits with their lending system and publishing payout rates daily) then ALL CRYPTOS are valued just based on simple supply and demand if there is no connection to any real assets backing it. It is basically only through trust and value given by the holders of the coin. Are you saying something like BITCOIN is a Ponzi? As BITCOIN IS FAR MORE OF A PONZI THAN BITCONNECT. Don't you see how that is the case and you are totally deluded to think otherwise?