There is no denying that the cryptocurrency world has seen a fair share of lending platforms offering unbelievable returns to investors. Most of the platforms boasting of high levels of complexity and sophistication lure investors to deposit cryptocurrencies. The fact that the cryptocurrency industry is still taking its baby steps with near zero regulations, has led to a frenzy of speculative activities that have led to the establishment of a thriving environment for cash grabs that masquerade as high yield investment programs. With that being said, it is very important for investors in the crypto space to take precaution before investing in any lending platform or HYIP programs. To give you a better perspective we will take a closer look at LendConnect (LCT) to unearth how it works.
What is LendConnect?
According to the company’s site, LendConnect is a first of its kind passive income generating platform based on Ethereum’s ERC20 Standards. With promised returns ranging from as low as 1.5 percent daily returns. Development of the platform kicked off last year in October with LendConnect maintaining that the platform is “built from scratch “.
LendConnect also claims to have a secure platform with future plans to enable LCT trade with other Lending tokens not to mention an internal exchange that was launched last month. The lending platform also offers an affiliate program with a total of 3.5 million LCT tokens in distribution and a claim of half a million tokens being held by the team behind the platform.
Auto Reinvest feature on LendConnect
According to LendConnect’s website, an auto re-invest feature will allow users to log in to the platform and make daily reinvestments on their profit. The platform will also allow investors to reach higher daily bonus interest rates with “shorter capital release dates.”
Risks of investing with LendConect?
To begin with, the name itself is a spinoff of BitConnect (also a lending platform ) that went down just about a month ago leaving many investors with loses after its BTC coin lost a huge percentage of its initial value. To most crypto enthusiasts, that would be a red flag.
LendConnect Support Team
With a claim to a high-quality support team, LendConnect offers an experienced team of customer support who are always available to answer questions. Howers there are a variety of issues on BitcoinTalk that involve users who have difficulty accessing their account yet there is no outreach by the LCT team to solve issues.
Furthermore, LendConnect’s website, as well as white paper, is riddled with a variety of grammatical errors which usually is a sign of a poorly organized project that was hurriedly patched up with complexities to woo investors. Besides, LendConnect has no details indication a clear strategy for investing the deposited funds from investors. This further raises eyebrows on its legitimacy.
LendConnect (LCT) launched its ICO on the 29th of November with the first rounds selling out in a matter of days. According to some individuals online, the fact that the ICO sold out quickly is also a reason to raise an eyebrow about the project. However, with the verdict yet to be determined on whether LCT is a scam or not, it is recommended that you do your own due diligence before investing in anything.