HedgeConnect claims to be the world’s first lending platform for decentralized hedge funds. Find out how it works today in our review.
What is HedgeConnect?
HedgeConnect, found online at HedgeConnect.co, is a lending platform for decentralized hedge funds. What exactly does that mean? The project – which was launched in partnership with Bitcoin Diamond – will allow investors to “earn handsomely” on their investments by intelligently pooling money together in a hedge fund.
An ICO for HedgeConnect begins on January 20, 2018. You can purchase tokens for $0.90 to $2.20 per token.
Obviously, when you see words like “lending platform” and a name like “HedgeConnect”, it’s a red flag that you’re dealing with a scam. Similar companies like Bitconnect are widely believed to be a Ponzi scheme. It also doesn’t help that Hedge Connect directly compares itself to Bitconnect in its marketing videos.
Is Hedge Connect yet another crypto-based lending scheme? Or is this a legitimate opportunity? Let’s find out how Hedge Connect works.
How Does HedgeConnect Work?
Hedge Connect, like other online scams, provides no transparency about its business model or operation. Check out this 50 second video to see what I’m talking about. The company literally just says buzzwords like “stable diversified return”, “top bonuses”, “affiliate bonuses”, and “seasoned traders”.
Eventually, you get to the point of Hedge Connect: the company will pay you 40% returns per month, every month, just for locking money with the company. The company doesn’t appear to offer any products or services. They vaguely mention some type of lending system and trading scheme. However, there’s no proof that either of these businesses are active, operational, or even in development.
Based on everything we can find on HedgeConnect.co, the system is a blatant scam or Ponzi scheme. Investors deposit money into the platform, then lock their money for a period of time. The returns of older investors are paid by the deposits of new members until the scheme inevitably collapses.
In any case, HedgeConnect’s lending scheme isn’t even scheduled to launch until mid-February. When someone launches an ICO without any type of product or service currently available, it’s a sign you’re being scammed.
Features of HedgeConnect HC
You can stake your Hedge Connect coins in your wallet, then earn a return on your investment. It’s unclear how much ROI you can expect through Hedge Connect staking.
HedgeConnect will pay you 40% ROI per month in exchange for participating in their lending scheme. The company doesn’t explain who they’re lending money to, nor does it describe the business model for their lending system or how they expect to generate returns of 40% per month.
Like all good pyramid schemes, Hedge Connect has a referral system in place where you get rewarded for referring friends to the platform.
HedgeConnect Investment Packages
Hedge Connect advertises all of the following investment packages. All you need to do is give the company a bunch of money, and they’ll magically turn it into more money:
- $100 to $1000: 40% ROI per month
- $1010 to $5000: 40% ROI per month plus 0.10% ROI per day
- $5010 to $10,000: 40% ROI per month plus 0.25% ROI per day
- $10,010 and Up: 40% ROI per month plus 0.30% ROI per day
In defense of Hedge Connect, they claim the ROIs are “up to” 40% per month. However, they never explain how much investors can really expect to make, and they mention the 40% ROI figure every chance they get.
The Hedge Connect ICO
The Hedge Connect ICO is scheduled to take place on January 20, 2018. There’s a total supply of 25 million tokens, although it appears just 5 million tokens will be sold during the ICO. Tokens are sold at a price of $0.90 at the beginning of the sale, rising to $2.20 by the end of the sale.
Hedge Connect is asking you to pay $1 for a coin that has no value, is not available on any exchange, and is not connected to any existing products or services. Why would you pay that much money for a value-less coin?
Well, Hedge Connect claims that its coin will be worth $120 by July 2018. That’s right: Hedge Connect is selling a coin to you today for $0.90, but claims that coin will multiply in value 120x within a few short months.
Who’s Behind HedgeConnect?
One of the fastest ways to identify a crypto scam is when a company refuses to disclose the names or locations of anyone involved with the project. As you might expect, Hedge Connect has no team information posted online. The company doesn’t explain why it’s qualified to manage your investments, nor does it provide any type of transparency.
HedgeConnect HC ICO Conclusion
When someone starts using words like “financial freedom”, “lending system” and “40% returns per month”, it’s a sign you’re definitely being scammed. There’s no evidence that Hedge Connect has any business model in place. The company advertises itself as a similar scheme to Bitconnect – widely believed to be a Ponzi scheme by most members of the crypto community.
There are just too many red flags about Hedge Connect – from the absurd price targets to the ridiculous earning promises.
Ultimately, based on everything we can find online about HedgeConnect.co, it’s an ICO scam and a Ponzi scheme at worst and a bad business model at best. Unless you feel like donating your money to a team of scammers who refuse to disclose their identity, you should probably avoid Hedge Connect.