Did you do your own research?

The vast, unregulated, wild west world of cryptocurrency has its share of heroes and villains. Perhaps the most recognised villains of the past couple weeks are those involved in promoting and sustaining the now-confirmed ponzi scheme called BitConnect.

Anyone who follows cryptocurrency on social media has likely seen videos or articles of BitConnect victims bemoaning their losses following the collapse of the scheme (followed by a Bitcoin address gratefully accepting donations). Briefly summarising, BitConnect halted all lending of the BitConnect coin and thereby destroyed the value of lenders' holdings, leaving their investors with virtually worthless BitConnect coins whilst making off with their valuable Bitcoin loans. Some of these lenders had put thousands of their hard-earned dollars into this program in the hopes of striking it rich when their loans suddenly vanished.

It is sad that people fell victim to this plot - don't get me wrong - it would be a terrible experience indeed to lose a large investment in this manner. However, the warnings of the dangers of lending to BitConnect were widespread and could be easily found with mere minutes of research. The red flags were abundant and readily visible to anyone who cared to look.

The perpetrators of this ponzi scheme will likely face legal repercussions, although this may be challenging to accomplish, being that they are veiled in secrecy and enjoy a certain degree of anonymity. It's possible that a number of known promoters of BitConnect may face monetary or legal penalties of some sort.

Participants in the BitConnect program are also seeking legal compensation for their losses with a class-action lawsuit against BitConnect. The likeliness of any forthcoming compensation, I would say, is slim to none. It would be extremely difficult to prove ignorance regarding knowingly participating in a ponzi scheme, being that the warnings were prevalent and easy to find. One can not legally be compensated for losses incurred through participation in a ponzi scheme, so this lawsuit is probably going nowhere.

The reality is, most BitConnect participants likely knew what they were doing and hoped they could make off with profits before a collapse, leaving those behind them to hold the bag. This means most knew they would be victimising those who followed them down the pyramid. It's hard to feel sympathy for those who would willingly victimise others in the hopes of making off with their own profits, essentially fleeing from the burning building while casting other victims into the inferno. Do not forget this when you view these sad stories.

New coins such as Davor Coin hope to tap into this same greed, beginning another cycle of pyramid-building. Do not fall for this - it can only end badly. You will either make money at the great expense of others, or you will lose money to those who take advantage of you. There are only victimisers and victims in these schemes.

image source:

https://moviepilot.com/posts/2412558