Also on top of that, they have reduced the pyramid from 7 tiers to 3 tiers and there is talk of reducing further to just a 1 tier system. They originally did the huge tier to get people interested and into the Bitconnect lending system. Now that they have proven that they can make good on their promises, they don't need to schmooze people to their system, people are coming on their on free wills to join up. I have been apart of the system since April of this year and have received my initial capital back, which I promptly reinvested. You can see a lot of videos on YouTube of others receiving their capital back after their maturity date. I have used this system and I have not one single person under me as a referral, nor did I signup under anyone's referral link. You can make money purely off of the daily interest. I can break it down into terms of how and why the system works, once you realize how the system is actually working your perception of what the system is completely changes. The genius behind this system and algorithm is crazy good and others are trying to copy Bitconnect, but fail trying.
Let's say each potential investor only has 1BTC = $1K to invest, and everyone target a 36 months exit. At 40% interested compounded monthly, in 3 years, that's roughly 200,000,000 Bitconnect $. The "capital" in your possession is potentially meaningless. The genius behind Bitconnect already got your 1BTC at ICO to give you the BCC, but they are not going to pay you BTC or USD to purchase back your BCC. It's up to you to find 200,000 new $1K investor to unload your supposed wealth on.
They certainly have made good on their promise to provide people a platform to pay "real" money, BTC, to earn make-belief money. To get out, you only need to get enough new investors in to fund your make-belief money.
Even the new "investors" are probably wise to this, but probably are taking the gambles that there will be enough suckers coming in behind them to fund their own exit.
Actually you don't give them any BTC at all. You trade BTC peer to peer with sellers of BCC coins. I'm a week in and I have 10% ROI already on a large amount. I have no doubt the interest rates will get lower and lower over time as they burn through more of their reserve coins.
My example was referring to people that had already given them BTC at the ICO. In your case, you're paying BTC to a "peer". But if those smart investors like yourself have already locked their BCC to either staking or lending for astronomical returns, and reinvesting, then who are those dumb "peers" that are dumping BCC on the exchange? Bitconnect creates the wallets, they mint the coins, they totally control the exchange ... they can manipulate whatever they need to, totally unseen.
I am sure every investor is getting a handsome ROI. But can you buy anything with that "$" amount shown in your lending account? Or do you need to exchange to BCC first? Can you convert that BCC to real world values like house, car, smartphone, ect? Or do you need to find enough "peers" to buy your BCC coins first? Bitconnect is not paying you anything and will not pay you anything. It is your true peers that will pay to take the BCC off your hands.
The reason people are flocking to BCC is because of astronomical "investment" return. If the return is steady, then Bitconnect can't afford to "exchange" out the fake dollars holding. I will take the example of the $1K investor again, but this time he's smart. He paid $1 for each BCC at ICO, but he waited until 1BCC = $100 before lending, so the total "loan amount" is fake $100,000. With steady return, after 3 years, he now has fake $ 20 billion. There are ~8 million coins now, let's say there will be 20 million total coins in 3 years. To exchange out his holding, if each coin is worth $1000, then it will take all 20 millions BCC ... just for this one guy with the initial $1K investment. And even then, with all of those ultra valuable BCC coins, he would still need to find 20millions $1K investors to buy his coins, in order to realize his wealth.
If the return dwindles, then people will stop buying BCC, and you will be stuck holding those worthless BCC. Given Bitconnect lucrative maths, their operation will probably be done within 3 years.
. If anything using the lending platform will have made people a lot less than if they had just invested in the coin. Does it seem to good to be true ? Yes it does and so does Bitcoin and every other coin out there. Wild west for sure. 
