Signs of an Investment Scam!
1. Lack of need and application:
There are so many projects that are lacking in this area; Because they assume that when you create something new, people will buy it. This assumption, of course, is completely incorrect.
In the crypto market, only projects that have a real application or address an unmet need (industry or market) are seriously considered, as only these types of projects can perform well in the long term.
2. Astronomical and irrational benefits:
If something is so great that its realization seems far-fetched, it is because it is not real.This famous phrase should remind investors to lower their unreasonable expectations from such projects and analyze them with a rational view.
BitConnect’s 40% monthly profit may be tempting, but ask yourself whether it would make sense for a company to have to pay such interest to its investors on a regular basis.
3. Minimizing Bad News:
A company that has nothing to hide is always honest with its investors and admits its mistakes.
When the project is not so good, investors should be informed of the dangers ahead, not when the company is going bankrupt or a worse fate awaits it.BitConnect investors also suffered a similar fate.
The story began with a warning from the British Companies Registry, which is responsible for corporate law violations. The official threatened to stop all activities of the company and liquidate it.
Instead of taking the threat seriously and addressing concerns, BitConnect’s marketers and influential individuals tried to downplay the threat in order to keep investors confident.