BitConnect provide no information on their website about who owns or runs the business.

The BitConnect website domain (“bitconnect.co”) was privately registered on February 9th, 2016.

As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.

BitConnect Products

BitConnect has no retailable products or services, with affiliates only able to market BitConnect affiliate membership itself.

The BitConnect Compensation Plan

BitConnect affiliates invest bitcoin on the promise of a “daily profit” ROI.

BitConnect convert invested bitcoin into pre-mined BitConnect Coins through an internal exchange.

An affiliate can then opt to transfer their BitConnect Coins to BitConnect, on the promise of advertised daily ROIs:

  • invest $100 to $1000 and receive up to 40% a month for 299 days
  • invest $1010 to $5000 and receive up to 40% a month for 239 days plus bonus 23.9% ROI
  • invest $5010 to $10,000 and receive up to 40% a month for 179 days plus bonus 35.9% ROI
  • invest $10,010 to $100,000 and receive up to 40% a month for 120 days plus bonus 30% ROI

Referral commissions are paid on invested funds through unilevel compensation structure.

A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):

If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.

If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.

Residual commissions paid out as a percentage of invested funds across the unilevel team as follows:

  • level 1 (personally recruited affiliates) – 7%
  • level 2 – 3%
  • levels 3 and 4 – 1%
  • level 5 – 0.5%
  • level 6 – 0.3%
  • level 7 – 0.2%
  • level 8 – 0.1%
  • level 9 – 0.05%
  • level 10 – 0.03%
  • level 11 onward – 0.01%

Joining BitConnect

BitConnect affiliate membership is free, however affiliates must invest between $100 to $100,000 to participate in the attached MLM opportunity.

Conclusion

BitConnect Coin is a publicly tradeable altcoin. Users can download their own wallet and mine the coin if they wish.

BitConnect’s MLM opportunity however has nothing to do with this, short of using BitConnect Coin as a vehicle to conduct Ponzi fraud through.

BitConnect affiliates invest real money (USD/bitcoin) into BitConnect, who exchange it for BitConnect Coins they’ve generated for little to no cost.

These coins are then parked with the company for a period of 120 to 299 days, on the promise of a daily ROI payout.

The ruse behind BitConnect’s advertised “up to 40%” a month ROI payouts is “bitconnect trading bot and volatility software.”

For obvious reasons, this doesn’t pass the Ponzi logic test.

BitConnect Coin has no real world application. Nobody is buying or trading it other than BitConnect and its affiliates. The current public value of $8.75 (CoinMarketCap) is the result of the pump stage of the coin.

So how does a company generate a monthly ROI of up to 40% trading an altcoin only its affiliates are interested in?

The answer is they can’t.

BitConnect can throw generated BitConnect Coins around at will, but the company can’t produce a monthly ROI in USD to pay affiliates with. That money is solely derived from subsequent affiliate investment, making BitConnect a Ponzi scheme.

If trading BitConnect was indeed providing a massive monthly ROI, affiliates would be able to purchase BitConnect Coin on a public exchange and invest it through BitConnect.

This is not the case, with only BitConnect Coin directly invested in through BitConnect (via bitcoin) able to be reinvested for a ROI.

The referral commissions serve as a recruitment layer, adding an additional pyramid layer to the scheme.

BitConnect affiliate recruitment of course ties into the value of BitConnect Coin, as new affiliates invest in BitConnect Coin (through BitConnect) and inadvertently drive up the price.

On paper this looks like public demand for BitConnect Coin, but it’s really just affiliates investing in BitConnect’s Ponzi scheme. The only reason BitConnect Coin is used is because BitConnect can generate them at little to no cost.

As with all Ponzi schemes, once affiliate recruitment dies down so too will new investment. This will see BitConnect starved of revenue and unable to meet its ROI obligations.

Being a variable ROI scheme, BitConnect’s collapse will be painfully slow. This gives the anonymous admins plenty of time to cut and run, whilst desperate affiliates are left in the lurch.

BitConnect Coin will have likely been removed from public exchanges by that time. With BitConnect affiliates ultimately left holding yet another worthless pump and dumped altcoin.