NEO Connect Another Pyramid scheme- Beware
NEO Connect Another Pyramid scheme- Beware
Most project that have lauched so far on the blockchain industry have attracted a lot of investment. Not all of these ventures are worth investing in or even legitimate to begin with. A few companies have cloned the BitConnect scheme, by the look of things. After ETHConnect, we now have NEOConnect as well. This situation is slowly getting out of hand, as many people will eventually lose a lot of money.
You are advised to stay clear out of pyramid schemes like this and equally do your own research before considerable if any venture is worth investing your hard earned cash in.
No Pyramid Scheme Should Be Trusted.
History has a way of repeating itself if no caution is taken to avoid it.And the best way to avoid history from repeating itself is by learning not to fall into the traps that lead you to that mess previously. A lot of people claim BitConnect and ETHConnect are Ponzi schemes, yet others continue to make money with them. OneCoin is also known to be a major pyramid scheme, yet there are people out there who make their living off it. Whether or not NEOConnect falls into this category remains to be seen, even though it is highly likely that is the case.
According to the website, their ”About Us” and “Lending”;
NeoConnect NEOC is a new decentralized cryptocurrency to change
the financial world in peer-to-peer network.
Transfer fees is very low and the Number of Coins are limited.
It is easy to use and allows you to benefit from the blockchain
It means that money can be sent from A to B within seconds.
Every NeoConnect user can see every transaction in the blockchain.
No other institutions like the government are needed for sending
money from A to B.
Lending is to invest your own NeoConnect to get a daily return from the
management of NeoConnect bought during ICO and also after the Internal
Exchange Launch. It is an impressive concept for investors for those who
want to enjoy a daily passive income.
No fixed daily interest rate can be guaranteed. The maximum interest rate
is upto 45% per month + 0.50% daily(For Tier 4 as per the Lending chart).
Hence, a maximum interest that can be earned is upto 60% per month.
When the contract expires then the investment fund will be returned in
accordance with terms & conditions. This investment option allows you to
profit from the NeoConnect trading bot and the volatility software. You
will receive daily profit based on your investment. You will receive your
capital back with the profits on the following chart. You can take out your
capital from NeoConnect lending platform or reinvest at any time.
When something comes along that sounds too good to be true, it often is. In the case of NEOConnect, everything screams this is a pyramid scheme waiting to collapse. Its team claims to have created a lending platform connected with the NEO ecosystem. If that were the case, they could have just used the existing NEO currency rather than create another token to mimic the real thing. Then again, without a native token, the creators of NEOConnect would be unable to earn a lot of money in the process.
Surprisingly, the creators of this project have stated that holders of their token will not earn a lot of money quickly. Instead, investors will earn money over the long run. It may even be an honest pyramid scheme, as the early investors will certainly benefit from more people falling victim to this scheme over time. Those who buy in later on – knowing all too well they really shouldn’t – will be the ones failing to earn much in the way of money. So far, it appears it would be best to avoid this scheme altogether, yet everyone will have to make up their own mind in this regard.
No one will give out money for free, yet that seems to be exactly what is going on with NEOConnect right now. It’s a very worrisome business model, as a lot of people will be lured in by these empty promises.
Similar to BitConnect and ETHConnect, NEOConnect will serve as a proof of stake token which cannot be mined by anyone. All users need to do is store NEC in their wallets to earn interest after eight days. There is also a brief roadmap on the website, indicating that a security audit will not occur until next February. That is the same point by which the tokens will supposedly be tradeable on a lot of smaller exchanges. The team also hopes to partner with Visa or MasterCard, which will never happen.
It is abundantly clear that currencies such as NEOConnect need to be avoided at all costs. There is nothing legitimate about this token or its promise that investors will make money. There is no real business model other than the lending aspect, yet there are established methods of lending cryptocurrency which don’t require a new token to be created out of thin air. It will be interesting to see how long it takes for NEOConnect to blow up.
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