LendConnect ICO Review: Lending Ponzi Scheme

LendConnect claims to sell strategies to manipulate the coin of its choice. It further mentions that the company owns the trading bots. However, this ICO has failed to provide any evidence to prove such claims.
LendConnect ICO Review: Lending Ponzi Scheme
2 (40%) 4 votes

LendConnect has not mentioned the names of the founders of the company and the domain (lendconnect.io) registration that was made on 14th November 2017, has been kept private. Hence, I was not able to extract much information about the name and address of the domain’s owner.

The website claims that LendConnect trades strategies to generate ROI for its affiliates, however, I was only able to find one verifiable option to connect with the company, Affiliate recruitment program.

If you wish to join the affiliate program of LendConnect, you can do that for free. However, this will allow you to enjoy the referral bonus only. To get the full participation, you need to invest at least $100.

It is no strange for such company to claim offering these great rewards. But, in reality, there are a lot of things that we need to consider before falling for their trap. I would suggest being cautious when investing in a company that is not transparent about its owner and the business model of the company.

LendConnect – Compensation Plan

LendConnect sells the pre-generaed LCT points to its affiliates for a rate between 0.60 dollars to 1.10 dollars. After acquiring these points, the affiliate lent back these points to the anonymous owner for the monthly ROI promised on the website.

  • Plan 1: You need to invest $100 – $1000 for receiving up to155% of monthly ROI for 120 days
  • Plan 2: You need to invest $1001 – $5000 for receiving up to 158.1% of monthly ROI for 100 days
  • Plan 3: You need to invest $5001 – $15,000 for receiving up to 161.2% of monthly ROI for 80 days
  • Plan 4: You need to invest $15,001 – $100,000 for receiving up to 164.3% of monthly ROI for 60 days

LendConnect – Referral Commission

LendConnect uses unilevel structure to pay the affiliates the referral commission for recruiting new affiliates. In a unilevel structure, an affiliate is placed on the top order and the new affiliates recruited by the to affiliates are placed directly under him, on level 1.

The affiliates recruited by any affiliate on level 1 are placed directly under him on level 2 and so on. This goes on for an infinite number of rows.

LendConnect has put a cap on level 4. The affiliates are paid the percentage of funds invested by the new recruited affiliates.

  • Level 1: 8%
  • Level 2: 4%
  • Level 3: 2%
  • Level 4: 1%

LendConnect Review

TJ Fox: 1 star

I bought 250 dollars worth of LCT and sent it to my Lendconnect wallet and there is no pending transaction showing and it’s been 4 hours. They took all my LTC from coinexchange but have no records and I lost everything!!! I’ve had no one respond or answer me about it either.

Anthony William: 1 star

Made a lot of statements about how much better than other ico’s & lending sites but this has been the worst start to an ico that I have tried & I have got coin in plenty. Not just difficult to get like HXT Ethconnect Homeblock but site down then changed site, then up but most couldn’t get anyway. Now they have ‘sprukers’ bullshitting about how wonderful they are. Dont believe them.

Conclusion from the above review

I won’t deny from the fact that there are many reviews on Facebook that are remarkable. But, I would also not ignore the ones that have blamed LendConnect for bad service and not returning replies to their problems. It is not a big deal to plan these great reviews. However, the ones that are talking about the negative side of a company, are the ones that have gone through really bad experiences.

LendConnect’s dashboard has bugs and the company has failed to solve queries of those affiliates who paid the money and did not receive the LCT points in their account. This shows the inefficiency of the company to resolve problems or they are too busy to fill their pockets that these issues seem nothing to them.

The Verdict

LendConnect has mentioned on their website that they have their own trading bot and claims that they are capable of manipulating prices of the coins of their choice. In short, they are selling strategies to pay affiliates the promised ROI.

But, they have failed to provide any evidence to back these huge claims. And, if any of these claims are true and they are capable of making these kinds of profits, why do they want to share it with random affiliates on internet.

The admins have done pretty slick job to justify their anonymity. Owners wants to keep taxes at bay and that is the reason, they have chosen to remain anonymous.

Wouldn’t it have been better to give no excuse instead of making such remarks? It is laughable, isn’t it?

As always, I could only verify the affiliate recruitment program and the other claims are too flimsy to be considered true.

As per the Lending Ponzi Scheme, the admins would unburden the LCT points that they claim to have pre-generated, for real money. The promise of huge ROI will also not work for long. Once, the new recruitment would freeze as it happens with all the pyramid scheme, the ROI will stop.

The anonymous admins will pay until the minimum threshold will reach and would run away with all what is left. The affiliates are given the bait of huge ROI to encourage them for keeping as much coins parked as possible. When the platform collapses, the admins make a run with all what is left, making them immensely rich.

In these scheme, those joining early are able to make some money, but the majority of the affiliates are left starving. They even lose their hard earned money that they spend on these platforms. So, I would suggest making better decisions and invest in something that is worth which LendConnect does not seem at all.

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1 comment on LendConnect ICO Review: Lending Ponzi Scheme

  1. SamLendconnect

    Now Lendconnect want to “hardfork” and change the name of the coin ! Ahah… They claim that they must do it because of Coinexchange. But how an exchange can have such an influence on a Ethereum ERC20 token ? The price has dropped so low… On their telegram channels there are a lot of people working for Lendconnect and that appears as normal users but these are fake users that claim that they bought thousands of tokens but these are fake claims intended for attracting new “investors”.