The Ponzi Crypto Coins account is dedicated to uncovering schemes that rely on gathering newcomers. And while BitConnect has been known to involve a multi-level, pyramid-like structure, the gains "on paper" are still continuing.
A few days ago, Ponzi Crypto Coins tweeted to Buterin and Charlie Lee(@satoshilite) and received a reply from the founder of Ethereum.
But how can BitConnect survive? Easily, with the current high Bitcoin prices. BitConnect promises to give rewards for lending cryptocurrencies. But the payout is in BitConnect coins, which have appreciated a lot. Yet not the amount of coins seen "on paper", only to the amount of the initial cash investment- so actually, at current prices, a user would receive a payout of much less BitConnect coins.
Suppose someone invested 1 BTC back when it was $3,000. On paper, he might have rewards, but if he decides to withdraw- he will receive only his initial investment, in BitConnect coins. Meanwhile, the company would have kept that Bitcoin, which has appreciated to $7,000 and above.
BitConnect is only traded on the internal platform of the project, and is in fact not a free market. Despite this, the dealings of the platform have sent the coin to a price of $271.16, nearly rivaling DASH in terms of market capitalization. BitConnect has appreciated more than 24.9% in the past week.
Then, there is the confusion issue that sometimes, the BCC ticker of BitConnect is confused for Bitcoin Cash, which goes both as BCH and BCC, depending on exchange, but some users bought in confusion, after BitConnect was listed on hitBTC with a ticker of "BCC".