EtherConnect Review: Bitconnect reboot with DeFi buzzwords
EtherConnect provides no information on its website about who owns or runs the company.
EtherConnect’s website domain (“etherconnect.co”) was privately registered on January 12th, 2021.
From its company logo to its marketing material, EtherConnect represents itself as a reboot of the notorious BitConnect Ponzi scheme.
The following is from EtherConnect’s official marketing presentation;
As everyone knows that Bitconnect limited closed it operation around the world due to Government Regulation in 2018, But now Bitconnect is back with complete legal registration in Estonia & United Kingdom with its strong community.
Bitconnect is launching its new updated platform Etherconnect.
Although it’s likely that whoever is behind EtherConnect was involved in BitConnect, I’m doubtful its the same owners.
BitConnect was an MLM crypto Ponzi scheme launched in 2016.
Arcaro, who is believed to have stolen millions through BitConnect, remains in hiding.
A week after Arcaro fled, BitConnect collapsed.
Over the coming months Trevon James, one of Arcaro’s accomplices, confirmed an FBI investigation into BitConnect.
Craig Grant, another of Arcaro’s accomplices, later confirmed the SEC were also investigating.
In late 2018 a report out of India suggested US authorities were looking to recover $5.6 billion from Indian nationals Satish Kumbhani and Divyesh Darji.
Kumbhani and Darji are believed to be the architects of BitConnect.
Darji was arrested by Indian authorities in August 2018. Satish Kumbhani was arrested in June 2019.
Reports out of India revealed the FBI had sent agents to interrogate Kumbhani following his arrest.
In February 2019 the FBI directly reached out to BitConnect victims.
Since 2019 there have been no significant public developments from US authorities with respect to BitConnect.
The current status of any ongoing US investigations into BitConnect is unknown.
Given this, I’m highly doubtful any of the BitConnect OG crew are behind EtherConnect.
They already stole billions. It makes no sense to return with a clone scam.
At the time of publication Alexa ranks the US as the primary source of traffic to EtherConnect’s website (85%).
Read on for a full review of EtherConnect’s MLM opportunity.
EtherConnect has no retailable products or services, with affiliates only able to market EtherConnect affiliate membership itself.
EtherConnect’s Compensation Plan
EtherConnect affiliates acquire ECC coins from EtherConnect.
EtherConnect don’t publish the current internal ECC value on their website. Marketing presentations from mid February however peg the internal ECC value at 10 cents.
Once acquired, ECC coins are parked with EtherConnect on the promise of a monthly return.
- invest $50 to $1000 in ECC and receive 10% a month
- invest $1001 to $5000 in ECC and receive 13% a month
- invest $5001 to $10,000 in ECC and receive 16% a month
- invest $10,001 to $100,000 in ECC and receive 17.5% a month
Once invested (staked) with EtherConnect, ECC is locked for 365 days.
EtherConnect Affiliate Ranks
There are seven affiliate ranks within EtherConnect’s compensation plan.
Along with their respective qualification criteria, they are as follows:
- Affiliate – sign up as an EtherConnect affiliate and invest in ECC
- Racer – convince others to invest $50,000 in ECC, max 30% from any one unilevel leg
- Gladiator – have two Racers in two separate unilevel team legs and convince others to invest $175,000 in ECC
- Tornado – have two Gladiators in two separate unilevel team legs and convince others to invest $400,000 in ECC
- Typhoon – have two Tornadoes in two separate unilevel team legs and convince others to invest $1,000,000
- Cyclone – have two Typhoons in two separate unilevel team legs and convince others to invest $3,000,000
- Black Panther – have two Cyclones in two separate unilevel team legs and convince others to invest $10,000,000
EtherConnect pays referral commissions via a 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.
EtherConnect caps payable unilevel team levels at ten.
Referral commissions are paid out as a percentage of ECC invested across these ten levels as follows:
- level 1 (personally recruited affiliates) – 8%
- level 2 – 3%
- level 3 – 2%
- level 4 – 1%
- levels 5 to 8 – 0.5%
- levels 9 and 10 – 0.25%
Note that the how many levels referral commissions are earned on is determined by personal recruitment:
- recruit one EtherConnect affiliate investor to qualify for referral commissions on four unilevel team levels
- recruit two EtherConnect affiliate investors to qualify for referral commissions on seven unilevel team levels
- recruit three EtherConnect affiliate investors to qualify for referral commissions on all ten unilevel team levels
Although not explicitly clarified, I believe EtherConnect pays referral commissions in ECC.
EtherConnect pays a ROI match using the same unilevel team used to referral commissions (details above).
The ROI match is paid daily and is capped to five unilevel team levels.
- level 1 (personally recruited affiliates) – 10% match
- level 2 – 5%
- levels 3 and 4 – 3%
- level 5 – 1%
As with referral commissions, EtherConnect affiliates must qualify for ROI match levels through personal recruitment:
- recruit one EtherConnect affiliate investor to earn a ROI match on level 1
- recruit two EtherConnect affiliate investors to earn a ROI match on level 2
- recruit three EtherConnect affiliate investors to earn a ROI match on levels 3 to 5
Like referral commissions, I believe the ROI match is paid in ECC.
EtherConnect rewards affiliates for rank qualifying as follows:
- qualify at Racer and receive 1% a month for 6 months
- qualify at Gladiator and receive 1.2% per month for 6 months
- qualify at Tornado and receive 1.3% a month for 6 months
- qualify at Typhoon and receive 1.4% a month for (undisclosed)
- qualify at Cyclone and receive 1.4% a month for 6 (undisclosed)
- qualify at Black Panther and receive 1% a month “for lifetime”
Although not clarified, I believe the above percentages are an added bonus on top of the ECC investment ROI rate.
EtherConnect affiliate membership is free.
To participate in the attached income opportunity however, a required minimum $50 investment in ECC is required.
Note that although USD amounts are quoted, EtherConnect solicits investment in ECC via equivalent ethereum amounts.
Although it riddles its marketing pitch with DeFi buzzwords, EtherConnect is no different to its 2017 BitConnect predecessor.
DeFi stands for “decentralized finance”. In the MLM crypto niche, it’s merely an excuse to ramp up already excessive use of crypto jargon.
Etherconnect community enhanced the crypto finance platform & merged the DeFi protocol with the governance protocol.
This will help us to find the independence of all desire, Etherconnect community of like-minded, freedom loving individuals.
Etherconnect connecting the possibility of income stability in a very unstable manner.
All you need to know is ECC is an ERC-20 shit token that took EtherConnect’s owners a couple of minutes to set up.
ECC Coin is a stable coin and this will be increase every month 10% to 40% From the date of launch.
ECC is no difference to BitConnect’s BCC, which also started out as an ERC-20 shit token.
In addition to only taking a couple of minutes to set up, creating an ERC-20 tokens costs next to nothing.
Returns are currently being paid from EtherConnect’s internal exchange. Returns are funded by subsequent ECC investment, making EtherConnect a Ponzi scheme.
Like BitConnect did, EtherConnect plans to eventually stop paying out invested ethereum and dump on a public exchange.
Based on EtherConnect’s marketing representations, this will occur through Binance.
Whether that happens or not, who knows. And it doesn’t really matter.
EtherConnect is a Ponzi scheme and, as BitConnect’s investors learnt, the majority of participants in Ponzi schemes are guaranteed to lose money.
Once they figure they’ve got enough stashed away, which may or may not coincide with regulatory heat, EtherConnect’s owners will do a runner.
Cue the same mess that followed BitConnect’s 2018 collapse.
Update 20th June 2021 – EtherConnect has begun its shitcoin factory, starting with the pending launch of Ether Yielf Farming (EYFI).