Hedge Connect Review: HC points ICO lending Ponzi scheme
Hedge Connect provide no information on their website about who owns or runs the business.
The Hedge Connect website domain (“hedgeconnect.co”) was privately registered on November 29th, 2017.
In the Hedge Connect whitepaper, the company claims its “development is in southeast Asia”.
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.
Hedge Connect Products
Hedge Connect has no retailable products or services, with affiliates only able to market Hedge Connect affiliate membership itself.
The Hedge Connect Compensation Plan
Hedge Connect affiliates acquire HC points from Hedge Connect’s anonymous owners in exchange for bitcoin.
HC points are sold to Hedge Connect affiliates for 90 cents to $2.20 each.
Once acquired, HC points are “lent” back to Hedge Connect on the promise of a daily ROI.
- invest $100 to $1000 and receive a daily ROI for 189 days
- invest $1010 to $5000 and receive a daily ROI plus 0.1% daily bonus ROI for 159 days
- invest $5010 to $10,000 and receive a daily ROI plus 0.25% daily bonus for 129 days
- invest $10,100 to $100,000 and receive a daily ROI plus 0.3% daily bonus for 89 days
Hedge Connect pay 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.
Hedge Connect cap payable unilevel levels at five, with commissions paid out as a percentage of funds invested across these five levels as follows:
- level 1 (personally recruited affiliates) – 7%
- level 2 – 3%
- levle 3 – 1.5%
- level 4 – 1%
- level 5 – 0.5%
Joining Hedge Connect
Hedge Connect affiliate membership is free, however free affiliates can only earn referral commissions.
Full participation in the Hedge Connect MLM opportunity requires a minimum $100 investment.
Conclusion
Hedge Connect claims to be the “world’s first lending platform for decentralized hedge funds”.
HedgeConnect is the world’s first lending platform and ICO hedge offering secured returns leveraging innovations in diversified funds.
Earn handsomely on your investments in hedge funds that are intelligently pooled for fund diversification for maximum gains to you.
There is of course no evidence of any hedge funds tied to Hedge Connect provided.
Dig a little deeper and you’ll find under the “hedge fund” Hedge Connect branding, your typical ICO lending Ponzi trading bot ruse.
Our groundbreaking robotrader is in full time development.
This trading bot uses proprietary algorithms to measure sentiment analysis, it can read the “feel” of the market based on social media posts, comments and
links. It can scan press releases and news articles.
Again, no evidence of any such trading bot is provided. Furthermore Hedge Connect’s claims fail the Ponzi logic test.
If the company’s anonymous owners did indeed have a trading bot capable of manipulating the cryptocurrency market such to the extent they represent, why would they be sharing it with randoms over the internet?
Surely the smart thing to do would be to set it up, let it run and become rich? Why unnecessarily share generated revenue?
The reason of course is that there is no bot. The only verifiable source of revenue entering Hedge Connect is newly invested funds.
Using newly invested funds to pay existing affiliates a daily ROI makes Hedge Connect a Ponzi scheme.
Lending ICO Ponzis like Hedge Connect play out as follows:
Admins (who are typically anonymous) offload worthless pre-generated points in exchange for real money. In this case it’s HC points.
The admins then use some of this money to pay promised ROIs for as long as new affiliates sign up.
Once affiliate recruitment dries up so does the ROI reserve.
When a predetermined threshold is reached, the anonymous Hedge Connect admins pull a runner with what’s left.
Early Hedge Connect investors make a bit of money (mostly via recruitment of new investors). But same as any other Ponzi scheme, the reality of such scams is that the majority of participants eventually lose money.
The original ICO lending Ponzi was BitConnect, which launched in late 2016.
One need only look at BitConnect’s recent collapse to observe the inevitable outcome of the ICO lending Ponzi model.
More than 10 percent of $3.7 billion raised in ICOs has been stolen: Ernst & Young
reuters.com/article/us-ico-ernst-young/more-than-10-percent-of-3-7-billion-raised-in-icos-has-been-stolen-ernst-young-idUSKBN1FB1MZ
The study also found several instances in which the underlying software code of a project contained hidden investment terms that had not been disclosed, or contradicted previous disclosures.
For example, a whitepaper might state that there will be no further issuance of a cryptocurrency, while the code might leave that option open.