Bitconcent Review: BTCC points ICO lending Ponzi scheme
Bitconcent provide no information on their website about who owns or runs the business.
The Bitconcent website domain (“bitconcent.co”) was privately registered on September 24th, 2017.
As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.
Bitconcent has no retailable products or services, with affiliates only able to market Bitconcent affiliate membership itself.
The Bitconcent Compensation Plan
Bitconcent affiliates acquire BTCC points from the company’s anonymous owners.
BTCC is sold to Bitconcent affiliates for $1.50 each.
Once acquired, BTCC points are “lent” back to Bitconcent on the promise of a monthly ROI of up to 45% for 90 days.
- invest 50 to 1000 BTCC and receive a variable daily ROI
- invest 1001 to 5000 BTCC and receive a variable daily ROI plus 0.1% bonus daily ROI
- invest 5001 to 10,000 BTCC and receive a variable daily ROI plus 0.15% bonus daily ROI
- invest 10,001 to 50,000 BTCC and receive a variable daily ROI plus 0.2% bonus daily ROI
- invest 50,001 to 100,000 BTCC and receive a variable daily ROI plus 0.25% bonus daily ROI
- invest 100,001 or more BTCC and receive a variable daily ROI plus 0.3% bonus daily ROI
Bitconcent affiliates can also invest in Bitconcent Gold points (BTCCG), at a rate of $10 per BTCCG.
BTCCG points are able to be lent for a monthly ROI of up to 35%, as per the following BTCCG lending tiers:
- invest 5 to 100 BTCCG and receive a variable daily ROI
- invest 101 to 500 BTCCG and receive a variable daily ROI plus 0.1% bonus daily ROI
- invest 501 to 1000 BTCCG and receive a variable daily ROI plus 0.15% bonus daily ROI
- invest 1001 to 5000 BTCCG and receive a variable daily ROI plus 0.2% bonus daily ROI
- invest 5001 to 10,000 BTCCG and receive a variable daily ROI plus 0.25% bonus daily ROI
- invest 10,0001 or more BTCCG and receive a variable daily ROI plus 0.3% bonus daily ROI
Bitconcent pay referral commissions via a unilevel compensation structure.
A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):
If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.
If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.
Bitconcent cap payable unilevel levels at ten, with commissions paid out as a percentage of funds invested across these ten levels as follows:
- level 1 (personally recruited affiliates) – 5%
- level 2 – 2%
- level 3 – 1%
- levels 4 and 5 – 0.5%
- levels 6 to 10 – 0.2%
Bitconcent pay residual commissions via a binary compensation structure.
A binary compensation structure places an affiliate at the top of a binary team, split into two sides (left and right):
The first level of the binary team houses two positions. The second level of the binary team is generated by splitting these first two positions into another two positions each (4 positions).
Subsequent levels of the binary team are generated as required, with each new level housing twice as many positions as the previous level.
Positions in the binary team are filled via direct and indirect recruitment of affiliates. Note there is no limit to how deep a binary team can grow.
At the end of each day Bitconcent tally up new investment volume on both sides of the binary team.
Based on matched investment volume, a Bitconcent affiliate is paid a percentage of the matched funds as follows:
- $1000 matched on both sides of the binary team = 2% residual commission rate
- $10,000 matched on both sides of the binary team = 3% residual commission rate
- $100,000 or more matched on both sides of the binary team = 5% residual commission rate
Bitconcent affiliate membership is free, however free affiliates can only earn referral commissions.
Full participation in the Bitconcent MLM opportunity requires a minimum investment of 50 BTCC.
Leave it to the MLM underbelly to decide the Ponzi nature of lending coins isn’t the problem, rather it’s the branding.
Bitconcent has simply rebranded lending as “holding on”, otherwise it’s the same Ponzi scam.
Real money is exchanged for worthless BTCC and BTCCG points (two ICO point schemes by the same company, really?), with advertised ROIs paid on both points with subsequently invested funds.
Referral and residual commissions are tied to affiliate recruitment and new investment, adding an additional pyramid layer to the scheme.
Lending ICO Ponzis like Bitconcent play out as follows:
The company’s admins (who are typically anonymous) offload worthless pre-generated points in exchange for real money. In this case it’s BTCC and BTCCG points.
The admins then use some of this money to pay promised ROIs for as long as new affiliates sign up.
Once affiliate recruitment dries up so does the ROI reserve.
When a predetermined threshold is reached, the Bitconcent’s admins pull a runner with what’s left.
Early Bitconcent investors make a bit of money (mostly via recruitment of new investors). But same as any other Ponzi scheme, the reality of such scams is that the majority of participants eventually lose money.
A good case-study in the collapse of an ICO lending Ponzi scheme is BitConnect.
Launched in early 2017, a year later BitConnect’s admins did a runner and the public value of otherwise worthless BCC points crashed. This resulted in widespread investor losses.
The more astute of you will have by now realized that, while it might initially sound broken English, “Bitconcent” is in fact just a lazy anagram of “Bitconnect”.