BitСonnect: a new financial pyramid of the cryptoindustry
You might think that pyramid schemes are a thing of the past. However, practice suggests otherwise. As recent events have shown, such scams are more alive than all living things and, moreover, are actively used in the modern cryptoindustry. One of the most striking examples of such modern pyramids is the newfangled BitСonnect platform. Criminal cases have already been initiated against the creators of this site, they have been charged with fraud. That is why below we will tell you everything that is known about the criminal operations of BitСonnect. So let’s get started.
What does the organization do
To defeat the enemy, you need to study it. In our case, we are talking about a well-prepared criminal scheme. Fraudsters work according to the Ponzi scheme. Recall that projects built according to this algorithm do not bring stable profits. The enrichment of old investors comes at the expense of new investors. Unfortunately, this kind of work creates a financial bubble. Which is what BitСonnect has become. And when the scam was revealed, serious charges were immediately brought up against the developers. At the moment, representatives and leaders of the project are accused of major financial fraud. Also, digital security experts suspect illegal sales of securities. As a punishment, a ban is requested for some of the platform developers to engage in such business activities. Also, most likely, the creators of the project will pay serious compensation to the victims.
But why are such obviously dishonest projects like BitСonnect gaining an audience at all? After all, if you remember, in 2018 the value of BitСonnect’s internal asset reached $ 500. Yes, then the project made a splash. How is this possible? Have we all forgotten about the classic examples of pyramid schemes? Why was it that dishonest work wasn’t caught on right away? More on this in the next section.
How BitСonnect tricked everyone
The reason for the success of such dishonest projects is the desire of ordinary users to make money quickly. And BitСonnect really worked. Indeed, for a financial pyramid, a growing industry is an excellent environment for active development. In which you can find many initiative users. Investments flow like a river, the first investors pay off at the expense of the second, the second – at the expense of the third, and so on. But someone is definitely left without income. And when users start leaving the project en masse, the financial bubble bursts. And the platform remains bankrupt. In the case of BitСonnect, the community was able to recognize the signs of a scam in time and stop working with the project. Users of the cryptoindustry began to avoid the project, exposed its dishonest functioning. And then representatives of state bodies took over.
The BitСonnect situation is a clear example of how a community can worry and affect its own safety. It is possible that at the moment there are many dishonest projects in the industry. Who knows when the next platform will show its criminal nature? The main thing that every user should remember is the need to remain attentive and not indifferent. Be vigilant, do not hesitate to share your experiences, talk about concerns and bring dishonest projects to the surface. Tell us if you have encountered a scam in the crypto industry. Thus, you will find more victims and together you will be able to achieve the closure of the dishonest project. After all, the cryptoindustry is our common home. You can learn about the news with us. We publish only high-quality, interesting material. Thanks for attention. Good luck!