BeConnect describes itself as a “trusted and reputable lending platform” built on Ethereum and based in Switzerland. Find out how it works today in our review.
What is BeConnect?
BeConnect is a cryptocurrency lending scheme that claims to pay you 56% ROI per month. The name is similar to Bitconnect, one of the crypto community’s most notorious scams. It also seems to advertise a similar product to Bitconnect – investors can earn huge ROIs by participating in some type of lending scheme.
Is BeConnect yet another crypto lending scam? Or is this a legitimate opportunity? The company claims to be built on the Ethereum ecosystem and based in Switzerland.
The company claims that its token offers faster transaction processing, reduced transaction risk, and better security. You can purchase BeConnect coins during an upcoming ICO. The token is listed under the symbol BCT. It’s an ERC20 token built on the Ethereum blockchain.
How Does BeConnect Work?
BeConnect appears to offer just one product or service: its lending scheme. That scheme is based around digital tokens called BeConnect coins, or BCT. These are digital tokens built on the Ethereum blockchain as ERC20 tokens.
The coins promise to give users “financial freedom and flexibility.” The BeConnect.net website emphasizes benefits like reduced transaction fees, easier international payments, and better security over your money.
“BeConnect is the investment tool you have been looking for and the time to boost your investment is finally here,” explains the official website.
If you buy BeConnect during the ICO, there isn’t anything you can really do with the coin. The company doesn’t plan to launch any products or services until March 2018. In March, the company will launch its trading robot, which will make automated trades on your behalf to earn a profit. The lending scheme will also launch in 2018.
The lending scheme seems to work in an identical way to Bitconnect and other scams: you deposit money into the company, and that money is locked up for a certain number of days. Once the term is completed, you receive your initial investment back, or can reinvest it to continue earning a profit. The returns of older investors are paid by the deposit fees of new members, making BeConnect more of a Ponzi scheme than a legitimate lending or investment opportunity.
The reason we believe BeConnect is a scam instead of a legitimate lending system is because of its absurdly high ROI claims: the company claims to pay you 56% ROI per month, with interest calculated daily. Those are higher returns than even Bitconnect, which we already know to be a scam. Few people are going to borrow money while paying a 56% interest rate per month – so it’s unclear how BeConnect plans to attract any customers to its lending scheme.
BeConnect also has a pyramid scheme-style referral system where you can earn money by referring other people to the platform. You earn 9% referral commissions on level 1, 3% on level 2, 2% on level 3, and 1% on level 4.
The BeConnect ICO
The BeConnect coin (BCT) ICO is taking place from February 1 to March 1, 2018. A total of 7 million BCT tokens will be released during the ICO at a price of $0.50 per token, rising to $1.10 per token by the end of the ICO.
Of the total supply of tokens, just 10% of tokens (!) are being sold during the ICO. The remaining 90% is reserved for the company under vague terms like “marketing” (40%), “maintenance (30%), and “developer” (20%).
The BeConnect whitepaper also mentions that 6 million coins will be available through PoW mining. They claim that there’s a total supply of 30 million BCT tokens. Obviously, the math doesn’t work out – so it’s unclear how many tokens there really are, and how many tokens are being reserved for the team.
Who’s Behind BeConnect?
One of the easiest ways to spot a crypto scam online is if the company is launching an “amazing investment opportunity” but refuses to disclose any information about its team, its location, or its experience.
Such is the case with BeConnect. The company repeatedly mentions that it’s based in Switzerland, but we don’t have any specific office information. The Facebook page mentions Zug, Switzerland as a location, but again, there’s no address info.
Neither the whitepaper nor the official website feature any additional information about the team or why the team is qualified to handle your investments.
When someone is asking you to send money online for an “investment opportunity”, but refuses to disclose their identity, it means you’re probably being scammed.
Based on everything we can see online and in the whitepaper, BeConnect is a blatant crypto scam. The company claims to pay users 56% returns per month through a lending scheme. You can also earn money through a pyramid scheme by referring other people to the platform.
The company also mentions an automated trading system, a high ROI staking system, and other earning opportunities. Despite all of these earning opportunities, BeConnect doesn’t seem to have any real business or product in place.
Ultimately, BeConnect appears to be trying to emulate the success of Bitconnect and other notorious crypto scams. We see no reason to believe it’s a legitimate investment opportunity, and the platform has countless red flags telling us it’s a scam.