NEOConnect – NEC ICO Cryptocurrency Or Pyramid Scheme Scam?
NeoConnect is a cryptocurrency that has no relation to NEO or BitConnect. Find out how it works today in our review.
What is NeoConnect?
NeoConnect is a lending, staking, holding, and trading platform that promises to give you multiple moneymaking opportunities. The platform appears to be piggy-backing off the names NEO and Bitconnect – although it doesn’t seem affiliated with either platform in any way.
Obviously, NEO is a legitimate cryptocurrency that’s been labeled as the “Ethereum of China”, while Bitconnect is a notorious cryptocurrency lending scheme that many suspect to be a Ponzi scheme. So is there anything legitimate about NeoConnect? Let’s take a closer look at how it works – and how it promises to make you wealthy.
How Does NeoConnect Work?
NeoConnect vaguely mentions the fact that it’s a peer-to-peer cryptocurrency built on blockchain technology. The main goal of the currency is, according to the website, “to create a lending platform with NEO ecosystem”. The website also mentions that the currency is “here to stay in the long run” and that “you will not earn much money but you will earn money for long time [sic].”
NeoConnect also claims to be open source, although we can’t find any information about the platform on Github or similar open source websites.
In any case, NeoConnect tokens (NEC) are proof of stake tokens where you earn money by holding the coins in your wallet – similar to how NEO works.
To earn interest with NEC, you just have to hold NEC in your wallet. You’ll be paid interest after 8 days. The website isn’t clear if you earn interest every 8 days, or if you start earning continuous interest after an initial 8 day period has passed.
You can make a little bit of money by staking your NeoConnect coins. However, you can make more money by lending coins to other people. It’s unclear who NeoConnect wants to lend to, or how they guarantee repayment of the loan.
The NeoConnect Token Sale
The NeoConnect coin (NEC) token sale is taking place in December 2017. The token sale is open to residents of around the world, aside from those in the United States, mainland China, South Korea, and Singapore (although you just have to check a box to “prove” you’re not from these countries).
The pre-ICO took place throughout November 2017, while the main ICO starts on December 8. You can exclusively participate in the token sale using NEO. Of the total supply of tokens, 88% is going to the pre-sale, with 12% going to the team. There’s a total supply of just 10 million NEC.
You receive commissions in exchange for referring other people to the platform. There’s a multilevel commission system where you earn 8% for the first level, down to 0.5% on the fifth level.
Who’s Behind NeoConnect?
NeoConnect lists an address in Macau, China as its headquarters. Macau, like Hong Kong, is a special autonomous region (SAR) of China, which makes it separate from the Chinese ICO / crypto exchange ban.
No information about the team is available online. The company appears to have a Twitter account and an email address, but aside from that, there isn’t much information about who’s running the company, or why they’re qualified to handle your investment.
The company has posted a roadmap on their website where they plan to release wallets and their lending platform between December and April 2018, along with further partnerships throughout the remainder of 2018.
Is NeoConnect a Scam?
NeoConnect has a number of strange things surrounding the platform. It uses the NEO logo in all its official marketing, despite the fact that we can’t find any official connection between NEO and NeoConnect. The company also doesn’t post team information online, and the whitepaper is extremely basic in its scope and technical explanation of the project.
The way the project is marketed also seems worrying. The company promises easy, long-term profits through staking and lending – although it doesn’t explain who they’re going to lend to, or why someone would borrow money through the NeoConnect platform instead of other sources.
NeoConnect also has a multilevel marketing-style referral system for its ICO, where people receive huge commissions (down 5 levels) for referring people to the token sale. We haven’t seen many token sales implement a commission model for a legitimate token sale project.
Another red flag is the similarity to “Bitconnect” – in terms of both the staking and lending system as well as the name. Plus, NeoConnect doesn’t have any products or services listed online at this time – yet they’re still launching a token sale. The wallet and lending platform isn’t expected to launch until April 2018 at the latest.
Ultimately, none of these things make NeoConnect a definite scam. There are certainly some unusual things about the project. However, many of these problems could be linked to poor translation from Chinese to English.
The NeoConnect ICO begins on December 8. You can purchase NeoConnect coins (NEC) in exchange for NEO. To learn more about the project and its moneymaking opportunities, visit the platform online today at NeoConnect.org.