Maybe you've seen this on youtube or some other social media platform. This coin promises payouts from their lending program to the tune of 40% a month for different amount that you "stake" on their site. People can make money in 2 major ways.
THE REASONS THIS COIN IS A SCAM
There is no trading bot that can make more 40% a month.
If there was a bot that could make those kind of returns trading volatility, they would be dominating the world of finance and would not need any loan to have capital to invest. The only person making a claim of inventing a trading bot that can bring in those kind of returns is someone who has no experience trading the markets.
If there was a bot that could generate 40% a month to pay out to lenders, they would have no problem raising capital at less than that rate.
In this 0% rate environment, anyone that could develop a trading bot that made 40% return a month, would just borrow the money for much less somewhere else. If they could borrow it from a bank, or a VC or any other financial institution, why would they borrow it from you and pay you 40% when they could get it for less elsewhere? This tells me that it's a scam that will fall apart after the last dummy stakes their coin.
WORD of ADVICE
The only reason the price and market cap of this coin is increasing is because of the affiliate market scheme and new investors staking their coins. There are much more people buying into this scam than selling it. When people have to stake their money, they are promising not to take it out for a minimum of 120 days. You will know that the last dummies have piled in when you see the market cap of this company decreasing for two months straight.
At this point, the amount of sellers will be greater than the buyers (stake-ers), and because the bitconnect site is one of the only exchanges that provide a market for this coin, you will not to find a buyer for every seller that wants to get out. The coin will crash and everyone will lose their money.
I will not promote this coin. If you are in, I suggest you get out. 1% returns daily are not sustainable. There is no trading bot. The only money being generated is from affiliate marketing sucking in new naive investors. Don't be one of them.
