Bitconnect dudes are having a nice time now spending that millions they have taken away from all that IDIOTS who was believing in FREE MONEY and fairy tales. Me and many other people on this forum were predicting that this huge ponzi scheme will collapse soon, but nobody was listening and here is the RESULT !
Am I the only one who worked out that Bitconnect are profiting hugely from the lending rates (they are paying people less money than the growth of their coin)? As long as they can predict the growth, they can afford to give these interest rates and profit from them. Even the minimum rates for higher deposits (0.25% daily bonus for highest deposits) are not excessive, since they do actually get interest from the BCC itself that members deposit of MORE than this rate (8% per month staking interest currently is built into the coin and members give this growth up too when lending into USD and locking it away for a period) but this should be paying the affiliates and that is where their massive reserves of BCC come in and they are gaining lots of interest there! This platform is not a ponzi, they are making profit. I keep trying to explain to people on here, but they don't understand. While they can stabilise the coin price and not make it reduce in value (which their platform is well set up to do), they can make money for both themselves and the investors without even having any bot trading for them which is the ironic thing about their marketing.
I actually feel a bit bad for selling my 30 tokens I bought for 0.008 for 0.021 (made $1600 profit) as they are now worth a lot more (could have made an extra $1300). Anyway, I'm now going to deposit the profit into bitconnect AS IT IS NOW OPERATIONAL AGAIN. I'm guessing there will be some angry people who are currently suspended who accidentally withdrew too much due to the bugs but they are probably doing the right thing allowing access to people who didn't have any problem with that.
As I said before, you are making up facts that don't make sense and you don't know are true. It isn't that hard for Bitconnect to prove they are solvent and have a trading bot. Since they can't do that, it's perfectly logical to assume they are
not solvent and their bot does
not exist. Go ahead and dump more coins into it if you want, but don't go claiming you've "worked out" how they are profitable when you do not have proof.
The only way they are not in profit is if someone is stealing the cash (which is why I am interested in how much the bug cost them in funds). They should be using their profits as a reserve in USD preferably (in case of BTC problems) to buy BCC for when they are struggling to keep the coin price up (since obviously the coin has inflation built in for a while, they always need to increase its perceived value). It's not hard to work out they are profiting, just from looking at the graph on coinmarketcap of their coin value. When members exchange BCC into USD they give that growth up (also reducing sell pressure by locking it away) even though their capital is guaranteed plus variable interest which so far is greater than 30% per month I think but this is less than the coin has been increasing in value so bitconnect are making a killing in profits (by the time people exchange dollars in the lending wallet into BCC, the people are GETTING LESS BCC even though they are getting more dollars). They probably own nearly half of the BCC too (not including their liabilities for investors) and are making huge amounts in staking interest on that. The only worry is if the people managing it do not really know what they are doing and are being careless.
If you think the price increase of BCC is profitable to Bitconnect, you are right. The mistake you are making is you are, by your own definition, considering this a huge multimillion almost billion dollar
pump and dump, which will cause a huge loss to investors. This seems more like a ponzi scheme. They kind of have the same idea with the exception of how they operate. The money that Bitconnect is paying has to come from somewhere, and the bot is the only reason people are buying BCC to begin with and the reason the price is rising. You can't just become "profitable" by a price increase, they have liabilities that need to be paid, a stream of income that is greater than expenses. Their liabilities add up to 40% per month, which assuming the bot does not exists makes this a ponzi scheme. If they are simply selling their BCC reserves to new investors like you suggest, I suppose that would make it a pump and dump with a high degree of fraud.
If they had really found such a great way to make so much money, they wouldn't need the public to fund them. They would have gone straight to an angel investor, bank or hedge fund and got more money than they asked for. Why didn't they do this? Because that would require answering all the questions that I have already asked. This is why they are only targeting the public who are financially unsophisticated, and don't know what questions to ask and are therefore easy prey. Bitconnect is already breaking US securities law by refusing to reveal such information. All these BCC now fall under SEC regulation. Their servers are located in San Francisco and they will be shutdown unless they comply.
I honestly don't know how people can keep defending and promoting this coin. It's illegal. Who's the CEO? Who are the shareholders? You're defending a faceless company. Really? Because they have a working platform that can show your money going up? Show me a different successful anonymous company. How much lower are you willing to go? Look what happened when their exchange went down. The price tanked 75% immediately. Sure shows a lot of confidence when people are going to dump your coin like that.
Just be aware that you are part of a cult. You believe because you want to, not because anyone has proven something to you. All cults are fake. I don't know how to put it in kinder words for you. You will lose.
I don't actually have any money on the line at the moment as I'm yet to buy more BCC and only just got interest in this a week ago. You are still not understanding things if you are saying they have liabilities of 40% per month. How many times do I have to explain they are profiting from that interest rate as BCC goes up higher than that? When people lend into USD they give up the coin's value until they exchange the dollar amount back. The coin has been increasing faster than this interest rate they give you so they only need to PAY LESS BACK. They are providing a kind of service where they guarantee your capital (since they can determine the price is going to go up) and give you a lower interest rate than the coin goes up in value. The only people at risk are the coin holders if bitconnect can't sustain its value from the profits they are making with their service (which is marketed in a different way to the effective result of what really is happening). They seem to do everything to try and maintain the value and prevent any panic sells etc. so the risk should technically be lower than investing in something like bitcoin on its own as you need to keep it on an exchange and put a stop loss on it to guarantee you don't lose all your investment.
Regarding legality, they registered as a UK company. I noticed that many companies dealing in cryptocurrency only (those that don't deal with actual FIAT deposits) register in UK as it's not regulated yet regarding bitcoins so there is no law against what they are doing but I don't know what the situation in USA is. I think their recent notice mentions registering again as a private limited company (I only glanced at the announcement but I saw something like that). It will probably be in UK as I think their initial registration was probably just for show and not compliant if they aren't actually operating in UK (the scam places only register to seem legit as it probably is very easy to get a certificate with a false name). It is possible for them to legally run the same business they are doing from the UK but they will probably be more strict with identification. What many of the legitimate companies do in UK is implement KYC policies despite not legally having to do so when dealing just with cryptocurrencies. It's like a way to show they are legitimate to authorities to do it voluntarily. They may have to stop taking US deposits due to these issues in the future. This is if they want to really do this properly.
The only people at risk in their system are the coin holders who do not want to use their service to guarantee their deposit amount but their system seems to prevent the coin being dumped by tempting people into guaranteeing their deposit with interest as this also prevents them dumping the BCC for a long time and must decrease the sell pressure on the exchange and also prevents a lot of panic selling.
They wouldn't want to DUMP the coin they have in reserve unnecessarily even to take profits at times, as then exchanging the USD back after someone requests the money would be MORE EXPENSIVE RATHER THAN LESS EXPENSIVE than the original investment in BCC tokens and they may not be able to cover their liabilities and they are extracting enough profit from that. If the coin price is sustained and doesn't go down, then they will be making money even with no bot if they pay low interest rates that they can afford (even 0.25% a day is affordable as I already explained). If the coin dumps, then remember that it's only the USD guaranteed amounts in the lending wallets that they have to cover (which is they why they should keep a USD reserve from their massive profits so far). There is nothing Ponzi about it if you understand the system as they are profiting from sharing the growth of the coin while providing the service to guarantee the value of any investment in the lending wallet.
Let's give an example of an investment from when BCC was $100: Investor deposits $1000 and gets 10 BCC which is lent and guarantees his deposit with interest (lets imagine capital release is 3 months even though it's about double this to show how easily they can afford it). Well historically, in three months, the interest in BCC is about another 10BCC (it's paid incrementally so is actually less if the coin goes up in value but it's not so easy to calculate). Now look how much the coin has increased in value by this time....say it has increased 4x (underestimate so far in 3 months as historically it's more than doubled each month on average so over 8x) then when the investor gets his $1000 back (which is ingeniously guaranteed by the system) he only gets 2.5 BCC back. Because it is incremental, the interest cost is not so easy to calculate but if the coin has increased by 4 times, then the interest may have cost them about 5BCC instead of 10BCC but this also depends on when the customer withdraws the interest in USD into BCC (later withdrawels cost less if the coin increases in value but maybe on average it halves the amount of BCC the interest costs if the coin has gone up 4x in this period). Bitconnect should then convert its 2.5BCC profit into USD as a reserve (remember this is around the same as their total liability for the investor which shows how much of a profit they are making and how much more the investor could have got for holding the coin instead of guaranteeing its value and this doesn't include staking interest that bitconnect takes too- but this staking interest should be for affiliate payments). If BCC price crashes, then they should have enough of a reserve for all the lending wallets if they make sure they are careful with their massive profits. This is only if they want to do this the correct way.
UPDATE: Had to edit it for errors whoops
