I had a look at the ICO. You are saying these people are more legit than people in the Far East for what reasons?

I noticed some very non-legit marketing methods. Firstly, you must know that the value of the any token (unless somehow linked to the profitability of the business) has no relation to how well a company does. The main factor in the price is the starting price in the ICO (simply because investors prefer not to sell at a loss). Now you understand that, do you not think offering a FIFTY PERCENT (50%) discount for early investors is a bit of a red flag? They will be encouraged by this 50% potential gain in the price. There are no promises, but bitconnect didn't promise anything either for most loan amounts. The lending had the desired effect, though, and the coin increased enough that bitconnect could share the gains in this way without ever being a Ponzi scheme.


Now that you understand that your tokens are not linked to the profitability of the company in any real way, you should also understand if the coin appreciates in value not everyone can win. Try getting everyone to cash out at the value they want. It will never happen in the markets. It's a zero sum game as it is not backed by any company profits (remember, bitconnect's lending generated profits for the company and also its users - just at a lower rate of profit than if users simply held the coin instead). Are you sure this ICO is not a Ponzi? It can't be a security, remember, like normal stocks (or they lose the USA market). Their claims that they will bring cryptos to a billion people from a measly 5 million is a bit overblown too.



Look at how their legal team tries to wriggle out of saying it could be classed as a security and thus not authorised in the USA (granted there have been no court cases to date so that could mean no ICO token is a security, but the SEC doesn't stop warning people about it - TokenPay had to refund Americans half way through their ICO):
"However, the Platform is designed in a manner that would fail if SCR tokens are simply held with the intention of reselling at an appreciated value. To clarify, the Platform is an interactive mediadriven platform. SCR tokens are held and used to interact on the Platform. No other tokens or currency may be used therefore, and non-use of the Platform will drive down the market price of the Tokens. Thus, if the general public’s primary objective is to hold an SCR token for investment (I focus on SCR tokens, because SP may not be traded on the secondary market), then the entire Platform will lose value due to non-use. This will render the Tokens worthless. Thus, any primary intent in holding the Tokens solely for investment purposes makes no sense."

I hope you are not invested in it to make money (or hope that most other 'investors' aren't trying to make money), going by the above.

At least bitconnect's model had no problems with price appreciation!