Ethereum Creator Vitalik Buterin Says Over 90% 'Tokens 1.0' ICOs Will Fail

Most of the cryptocurrency community already recognizes that Bitconnect is a scam. Now, we have additional confirmation thanks to Ethereum’s Vitalik Buterin.

In a brief Twitter interaction this past week, Vitalik Buterin wrote “that’s a Ponzi” when asked about Bitconnect.

Buterin was responding to someone asking why cryptocurrency thought leaders were not speaking against Bitconnect, despite the fact that it’s an obvious scam destined to collapse in the near future.

Bitconnect, meanwhile, continues to achieve record highs, fueled by gullible investors who believe the company has developed some secret “gold mine” algorithm capable of producing returns of several thousand percent per year, guaranteed.

The founders of Bitconnect refuse to disclose their identity or offer any transparency about the project. Any negative statements about the company online are greeted by dozens of users spamming their referral links.

Bitconnect is a Ponzi Scheme Doomed to Collapse in the Near Future

We could write an entire blog post explaining why Bitconnect is a scam – from the 1% ROI per day “investment packages” to the pyramid scheme-style referral system.

Basically, Bitconnect works like any Ponzi scheme: gullible investors deposit money expected to earn 1% to 2% returns per day (which adds up to 1,000% returns annually, compounded daily).

Obviously, no investment in the world pays a guaranteed return of 1,000% per year, every year. To support these ridiculous claims, pyramid schemes like Bitconnect pay the returns of older investors with the membership fees of newer investors. Nobody can ever withdraw their initial deposit, and the fund eventually collapses when an insufficient number of new members join.

Anyone with half a brain can see Bitconnect is a scam. However, the company continues to grow at an alarming rate. Bitconnect’s currency, BCC, currently occupies a top 10 position by market cap – despite the fact that the price seems to be artificially controlled by actors on Bitconnect’s own coin exchange, which accounts for 95% of BCC trading activity.

Amidst the criticism, cryptocurrency listing website CoinCodex recently decided to remove Bitconnect from its list of the top cryptocurrencies by market cap.

Based on all of this information, the collapse of Bitconnect is coming eventually. It’s not a matter of if – it’s a matter of when. We’re glad to see Vitalik Buterin agrees with the cryptocurrency community.

Unfortunately, anyone dumb enough to invest in Bitconnect isn’t likely going to know who Vitalik Buterin is or why his opinion matters.

In contrast with Bitconnect, other companies like USI Tech seems to have a real program and could be a more legit opportunity for entrepreneurs looking to multiply their coin. Just like many other bitcoin multipliers their future is still unknown, until proven successful.

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