Trevon James, one of the most famous promoters of the BitConnect pyramid scheme, was also a large-scale account holder on the blockchain-powered social network Steemit. As of February 18, his account was worth upward of $1 million, due to the high level of the STEEM Power asset, which is not traded on an exchange, but is measured in terms of STEEM prices.
"Trevon James Brown did not earn this money on Steemit, the balance you see is the money that he claims was stolen from his Exodus wallet awhile back by a hacker, which is the money he swindled via the BitConnect affiliate program," wrote one Reddit user.
The Steemit platform is just one of the apps on the Steem blockchain, with other projects coming along:
At the moment, STEEM has retreated to a price of around $4.03, still keeping the higher levels after the corrections. The platform is becoming more popular, but right now, early adopters are making most of the gains, as well as those who invest funds to grow their reputation. It is possible that at least in part, the growth of the platform and the reputation system are not organic, but the product of organized groups organizing votes, and groups of “whales” with high account values voting for higher rewards.
The value of Steem Dollars, previously stewarded toward parity with the USD, is now $5.03.
According to Steemit participants, Trevon James attempted to continue gaming the Steemit system as well, but due to his reputation with BitConnect received too many downvotes. Still, the value of his account is significant.
Some believe the move to Steemit was an attempt to keep some of the wealth generated by BitConnect. But strangely, James has chosen a platform where one's identity is also linked to the contents of the crypto wallet, unlike pseudonymous or anonymous coins.
In some ways, the Steemit platform also allows for the inadvertent creation of a pyramid scheme. While in the early days voting was enough, now buying voting power and story promotions allow users to rise to the top, to start receiving significant rewards. But this is in no way guaranteed.
Meanwhile, Trevon James has still not faced any direct repercussions, except for having a part of his funds locked for 13 weeks as STEEM Power. He even continues to buy up the BitConnect coins: