There are ways to make money while the market is down. The success of Bitconnect to raise millions of dollars into its Ponzi scheme encourages more criminal activity against vulnerable investors. A stagnate market combined with frustrated investors eager for a second chance for riches incite the perfect environment for scams to thrive.
POWH3D, POWL – Bitconnect 2.0
Proof of Weak Hands 3D (POWH3D) is a new decentralized exchange designed for high risk, short term gains. Proof of Weak Legs (POWL) is a fork of POWH3D with the exact same purpose and functionality but half the fees. These two “coins” are the predecessors of the defunct Ponzi schemes Bitconnect and Davor (DAV).
Both exchanges use a trading bot that secures transactions via a smart contract. The contract guarantees trading will continue so long as investors hold coins in their accounts. Money is made through the sale of the P3D and POWL coins which sell exclusively and directly on their websites (POWH3D.io and POWL.io) to the public. The premise of the businesses is to make dividends on each buy and sell transaction by charging 10% fees (5% for POWL). The fees are distributed among all token holders. The average profits proclaimed are between .5 and 2% daily. The names of the exchanges encourage investors to hold their investments long term to make more profits. This is a terrible idea as experience with Bitconnect shows that the ones holding long term suffered the highest losses.
Both websites uses colorful language to distract from the monstrously impending threat that a collapse may occur at any time. And the addition of a smart contract into the functionality is supposed to reassure investors. However, despite the open claim of them being pyramid schemes, the opportunity exists to make short term profits. But the investor must buy early and sell at the first sign of trouble as enterprises like these can collapse in a matter of hours. The Davor coin dropped from $177 to $.01 in less than a day. So, as tempting as this opportunity may seem, one must invest with extreme care.