Bitconnect might be in danger of being forced to close down due to increasing concerns of the project being a fraudulent company who is engaging in a Ponzi scheme.
The UK regsitrar of companies have threatened to take them off the registrar of companies and has given them two months to prove otherwise, if they do not prove “cause to the contrary” within two months, they will be taken off and their ruling will be enforced.
““Upon dissolution all property and rights vested in, or held in trust for, the company are deemed to be bona vacantia, and accordingly will belong to the crown,” the document reads. Many have speculated that BitConnect likely stashes its funds abroad, though there is no evidence to back this up.
What is Bitconnect?
Bitconnect dubs itself as a self regulated financial system. It states on it’s website “BitConnect is an open source all in one bitcoin and crypto community platform designed to provide multiple investment opportunities with cryptocurrency education where it is entirely possible to find the independence we all desire, in a community of like-minded, freedom loving individuals who, like you, are seeking the possibility of income stability in a very unstable world.”
Sounds good so far right?
Who doesn’t like financial freedom, a community of like minded freedom loving individuals and guaranteed stable income in an unstable world? Not anyone that I know.
Yet when stability and consistent returns are promised in an uncertain world, no matter how much we want to believe, we have to double check and see what’s really going on.
The troubles for Bitconnect may have started when some users felt something was wrong and then reported the site to authorities.
Others have stated things such as “I was just on [the] bitconnect website. Its a coin with absolutely no innovation or inherent value. The only reason this coin is worth anything is because their marketing plays to peoples greed. It will drop like a rock, just wait and see.”
These users, fearing, it was a pyramid scheme wanted it to be investigated and filed complaints and other users pointed out what the difference is between Multi level marketing and ponzi schemes and how bitconnect may fall into the latter category. Many have also commented on the site and said it should not be promoted on prominent sites
Despite concerns expressed early on, the company still has continued to grow, host events and convert new investors.
Bitconnect isn’t the only one that falls in the suspect category, another platform Bitpetite, which had promised exceptional returns has recently, went missing.
Whoosh. Gone. Nothing but air..
Well known figures such as Vitalik Buterin has made comments on the rise stating that it can, indeed be a scam.
In their detailed report, Nextweb also made some clarifications stating that
As pointed out by readers, BitConnect also listed on Companies House’s registrar as BITCONNECT INTERNATIONAL PLC.
It has been brought to our attention that, in addition to the other two instances in which BitConnect appears on the UK company registrar, BitConnect has also been listed on Companies House as BITCOIN AMR LIMITED.
One thing to keep in mind is that, prior to assuming the name BITCOIN AMR LIMITED, the company used to be registered as BITCONNECT PUBLIC LIMITED – not to be mistaken with BITCONNECT LTD.
According to the documents, BITCONNECT PUBLIC LIMITED (now BITCOIN AMR LIMITED) and BITCONNECT LTD were two separate entities, registered under two different company numbers: the former was logged under company number 10944876, and the latter – 10278342.”
In closing, always do your homework and beware of long term certainty.