If you are wondering is LendConnect a scam then you are in the right place. I know there are a lot of people suspicious of this place, as am I. And when I say “real” review I’m saying it because I have nothing to do with this company. I’m not promoting it or hyping it up. I’m just reviewing it for what it is.
The reason this place seems so suspicious is because it has characteristics of a ponzi scheme, which have become very popular in the cryptocurrency world. In this review I’ll be going over how LendConnect works, why it could possibly be a ponzi scheme, some other problems that I have with it and more.
LendConnect, as you can imagine from its name, is a lending platform that allows you to earn in several ways with their LCT tokens. There are several different investment packages that I will go over below which is how you would get started with this all.
To sum up how this all works and how you can make money with LendConnect here you go: Basically what you do is buy LCT tokens and you can make money with them in 2 ways: You can either just hold onto them and hope that the price will go up as more people join and invest in LendConnect, or you can “lend” your LCT tokens back to LendConnect and they will use them to trade cryptocurrency with their trading bot which they claim has “made even higher percentages than we could ever imagine”.
If you are familiar with the infamous BitConnect then it is very understandable why you would be concerned that this is nothing more than a scam. For those of you who do not know, Bitconnect is a very similar lending platform that has been under scrutiny since it started a couple years ago. Since then Bitconnect has left its operations in the United States due to not being able to comply with government regulations. Pretty much Bitconnect is a more than likely a ponzi scheme and LendConnect could very much be one too.
“Lending” is one of the ways to spot a cryptocurrency scam because usually these programs are scams.
They have 4 different investment packages. The minimum that you will need to invest is $100…
- Package 1
- $100 – $1,000 investment
- Standard daily interest
- 120 day duration
- Up to 155% per month
- Package 2
- $1,001 – $5,000 investment
- 0.10% daily interest
- 100 day duration
- Up to 158.1% per month
- Package 3
- $5,001 – $15,000 investment
- 0.20% daily interest
- 80 day duration
- Up to 161.2% per month
- Package 4
- $15,001 – $100,000 investment
- 0.30% daily interest
- 60 day duration
- Up to 164.3% per month
And of course, just like Bitconnect, they have a mlm style affiliate program that allows you to earn on multiple levels. Now this in of itself does not mean its a ponzi scheme just because it has a pyramid structure where the money flows up to those at the top… however, it does make this even more suspicious to me.
As a member of LendConnect you will be able to earn money from the investment of others. You can earn down to 4 levels below you. The people that you personally recruit to invest in LendConnect you will earn 8% from (level 1), the people that they recruit in you will earn 4% from (level 2), and so on.
This affiliate program is the reason you will see so many people out there promoting this. They are making money from getting people to sign up. Now there is nothing wrong with this…. if its legit. But I’m hesitant to believe it is.
Major Problem I Have With LendConnect
The issue of transparency is always a problem when it comes to online scams. This is expected because of course they are going to hide the fact that they are scams. It would be one crappy scam if they told you the truth right? No one would buy into it.
With LendConnect they are definitely hiding something. Why do I say this? Well because they give no information on the people behind it. You have absolutely no idea if this whole thing was created by an x-scammer or a saint. They don’t tell you anything. This is pretty much always the case when it comes to scams and pretty much never the case when it comes to legitimate opportunities.
Why would they give information on the people running this? If it is as great as they claim these people need to be praised.
Anyways… I have looked into far too many scams to let this just slip by. This is a MAJOR red flag and very concerning.
The Possibility of This Being a Ponzi Scheme
Basically a ponzi scheme is nothing more than a big transfer of money where older investors make money from the investements of newer investors. They provide no real value.
The reason LendConnect looks so much like a ponzi is because they are getting people to buy in and then these people are lending their LCT supply back to LendConnect so that they can trade crypto with their bot… which there is no proof of by the way. On top of that they have the typical pyramid structured affiliate program where you make money multiple levels deep off of recruitment.
In the world of crypto you can never be to careful when it comes to this. There are plenty of crypto ponzi’s that I have reviewed including CryptoGain & BTC Global, which you should watch out for.
Can You Make Money?
Whether its a ponzi scheme or not you will still have the potential to make money. Just look at Bitconnect. There are people that bought into that whole scheme early on and multiplied their money by 100x + depending on how early you got in.
When it comes to ponzi’s, getting in early is the name of the game. The entire system is reliant on new investors coming in. So the later on you get in the less chance you have at making a return.
Will You Make Money?
This is an entirely different question. If this is a ponzi scheme, which I am led to believe it is, then it is bound to collapse. Ponzi’s are guaranteed to collapse once the rate of new investors slows down and they cannot keep up with payments. When this happens the majority of people lose out. Some early investors will make a lot the the overall majority will lose.
Conclusion on LendConnect & Should You Invest?
I’m not going to tell you whether or not you should invest. LendConnect is very shady and I do not trust them at all, however, there is potential to make money here just as there was with Bitconnect in the beginning. So the choice is ultimately up to you. If you are low on money and not willing to take risk then this is not for you. But if you have some money to blow and want to see how this plays out then you could invest if you want.
If you have any questions, comments, or anything to add to this post please leave it below in the comment section 🙂