Up until now, advanced algorithmic trading has been a matter of sufficient technical skills.

A trader without such experience cannot fully monetize the potential of his knowledge of the market. As a result of that cryptos remained a privilege of a restricted group of people. We have long been waiting for a product that would put down this barrier and make crypto-trading more accessible to mainstream users.

Developer team has created a platform with several helpful features

Strategy Builder

In Strategy builder, users can drag & drop indicators to create a strategy or make their own bots easily.

Chosen models can be backtested on historical data to prove their effectiveness. Afterward, they can be connected to the exchanges to start trading automatically.

Once the strategy and indicators are selected, and the data set is provided (could be bought on the platform directly) bots can be connected to the exchange directly.

Data Marketplace

Datasets that are provided by other users and vendors can be bought here.

They may include historical and current market data, crypto-related social media content, etc.

Indicators Marketplace

Signals support several types of indicators.

  • Technical analysis –  helps users to comprehend the vast amount of data and help them make an informed decision.
  • Blockchain monitoring – as the blockchain is public it is possible to track major players on the market (so-called “whales’’)
  • Sentiment analysis – could be especially useful. Cryptos as a young phenomenon lacks consistent underlying fundamentals backing the movements of the market. The markets are currently driven mostly by investor psychology so sentiment is by all means important. Custom sets of indicators will be also a subject of the exchange between traders.
  • Machine learning – deep learning and procedures utilizing neural networks will be implemented as well.
  • Crowd wisdom – Signals will try to utilize the power of collective intelligence by letting the users buy or sell shares of one of several possible outcomes as a way of mapping the public tendencies.

To ensure sufficient capacity to process large quantities of data Signals cooperate with iExec – blockchain based cloud computing platform and Foxconn’s data center SafeDX.

Strategies marketplace

Strategies built by users, and also by developers, can be obtained (for remuneration by SGN tokens). All individual strategies have robust reporting. Users can check the performance and degree of risk before actively using it. Trading bots from other sources can be integrated into the marketplace as well.


To gain the access to additional features (and to pay on the marketplace) payment must be done through Signal Token (SGN) exclusively.

When a payment occurs, a small quantity of the tokens decompose, therefore the volume in circulation decreases. By doing so the creators intend to strengthen the price for users with long-term hold strategy.

Main SGN token sale starts on March 12, 2018, to raise funds for further improvements.


Signals platform is a technically viable and much-needed product. The question is whether the developers can achieve sufficient critical mass of users and consequently sufficient number of datasets, signals, and strategies to make it work. If successful Signals can act as a catalyst for further democratization of the market. To learn more about Signals visit their profile at ICOindex.


Due-diligence report of WePower (WPR)

Due diligence report of WePower (WPR)


This is not an investment recommendation! ICOindex has done a verification that covers several key aspects that we personally consider to be very important to determine whether the ICO project is legit or a possible fraud. These aspects do not reflect the investment potential or risk. Investing into any initial coin offering (ICO), crowdsale, token sale or any other cryptocurrency presented on this website can result in partial or complete loss of your money. Do not invest in projects you do not understand. Do not invest more than you are willing to lose. cannot be hold responsible for any issues relating to projects listed on website. 

Executive summary

WePower (WPR) is a blockchain-based green energy trading platform aiming to democratize access to a multi-billion market both for green energy producers and investors. Usage of the Ethereum smart-contracts, own ERC20 based token together with smart grid infrastructure revolutionize the possibility for energy tokenization and global scaling of the green energy market.

Due-diligence report

The first thing we typically look at during our due-diligence process is the team behind the project. Our conclusion is that based on public profiles information and background checks, the team has a balanced skill set both in business and project-specific energy domains (renewable energy, smart grids, etc).  Another positive sign is that project was able to attract several advisors who would help to bring proper expertise in a variety of key areas like blockchain and crypto-economy.

WePower (based in Gibraltar) declared partnership with several green energy suppliers and Estonian national transmission service operator Elering. It also claims that the project is supported by the Ministry of Energy of the Republic of Lithuania. We contacted the Ministry to clarify which kind of support is provided and here is what they kindly replied with:

“Thank you for your request. I would like to note, that Ministry of Energy observes a whole array of green energy projects and, among others, has taken interest in the results of WePower Network project.

However, Ministry of Energy is not in any way taking part in the WePower Network project and cannot be liable for activities of WePower Network project or investments made into WePower Network project.”

Whitepaper has a detailed explanation of challenges that it’s going to solve supported by models and calculations. We definitely recommend to read it in details to understand if it fits your investment risk profile.  It’s important to highlight that the project decided to structure their token sale model as a reward-based crowdfunding where contributors are rewarded free energy which they may use or sell on the platform. You can learn more about European crowdfunding regulation here.

In contrast with many other ICOs, project already has a working platform prototype which you can assess through web (requires Metamask extension to be installed in your browser) of check an official platform demo video

During pre-sale event completed on 22 October 2017, the project has raised 3 million USD. For the main crowdfunding round, the minimum investment is an equivalent of 200 USD.

  • ICO has a $5M soft-cap and $35M hard cap.  The hard cap is quite moderate compared to other recent ICOs. Tokens that are unsold during the sale will be burned. Publicly announced hard cap and disposal of unsold tokens allows potential investors to get a hint on potential future fundamentals.
  • Tokens allocated to the team (20%) will be locked for 3 years with a vesting schedule and tokens for the future (10%) use will be locked for 4 years. While it's a shorter period than used for non-blockchain start-ups (typically 4 years), it's longer then lots of blockchain start-ups have (6 months-2 years). Longer vesting period means that team is more incentivized to stay with the project and actively evolve it.
  • ICO smart contracts are created in collaboration with Blockchain Labs NZ and are publicly available for an audit on a GitHub. The address of the ICO contract is not published yet and will be disclosed only on the project official web - DO NOT send money to any address that is mentioned elsewhere but official page or you most probably will lose it.

  • The way current "single-round" token sale is organized, it's not optimized for a  more "fair" tokens distribution for whitelisted addresses. Large investors having capital and technological advantage (pushing their transactions faster) may buy the majority of tokens withing hard cap leaving other whitelisted investors without the ability to participate.  We recommend the team to consider implementing mechanisms that would improve the situation, e.g. by spitting ICO in several waves and introducing a hard-cap per investor in each wave.

Based on our thorough due-diligence investigation, including project whitepaper, team and advisers backgrounds, skill set and ICO model analysis we grant WePower (WPR) project a due-diligence certificate for passing ICO Index verification with a result ‘Verified’. For more information about WePower, please visit their profile.

Images from

Due-diligence report of Ink Protocol (XNK)

Due diligence report of Ink Protocol


This is not an investment recommendation! ICOindex has done a verification that covers several key aspects that we personally consider to be very important to determine whether the ICO project is legit or a possible fraud. These aspects do not reflect the investment potential or risk. Investing into any initial coin offering (ICO), crowdsale, token sale or any other cryptocurrency presented on this website can result in partial or complete loss of your money. Do not invest in projects you do not understand. Do not invest more than you are willing to lose. cannot be hold responsible for any issues relating to projects listed on website. 

Executive summary

Ink protocol (XNK) is an interesting blockchain project that aims to disrupt an existing space of peer-to-peer (p2p) marketplaces. The project promises to “enhance the buying/selling process with decentralized reputation and feedback ratings, decentralized escrow for secure payments, third-party dispute resolution, and very low transaction costs.”

Due-diligence report

There are couple reasons makes us positive about the project and its chances to succeed. First of all, the team behind it has a track record of building sustainable businesses. They currently run California-based company Listia, which is an auction marketplace that uses a virtual credit system for bidding and trading goods. The company has received 4 rounds of investments from VCs like Andreessen Horowitz, General Catalyst, and SV Angel and claim to have over 10 mln users using its platform. Secondly, the plans are exactly to leverage this existing platform as a first consumer of the new blockchain based system. This means investors can expect to see a real adoption of the project sometime soon. On a roadmap from the official project website,  Team promises to deliver working version already in Q1 2018.

Being new in a blockchain space, the team aims to close this gap by partnering with experts from Quantstamp and Consensys.

We definitely recommend checking a project whitepaper which is rather a business document outlining use-cases and economy of the token. If you’d like to get more technical details and are familiar with smart-contract technology and Solidity language, take a look at a Github project code and a proof-of-concept code currently running on an Ethereum Rinkeby Testnet.

Pre-sale and ICO (white-listing has started already) is powered by Ethereum network producing own ERC20 compatible token XNK. Here are highlights from our analysis of ICO structure

Update from Jan 20th, 2018

Ink Protocol just announced final details of the pre-sale cap, token price, and the smart contract address on their blog.

  • In order to enable token distribution for a broader group of investors (make it fairer), pre-sale will be performed in two phases. During first 24 hours investment is limited from min 0.1 ETH to max 1 ETH per whitelisted address. Post 24h it's up to an individual cap. You can get more details on the latest team's blog post.
  • $15MM maximum sale cap. The hard cap is quite moderate compared to other recent ICOs. Publicly announced hard cap and token allocation allows potential investors to get a hint on potential future fundamentals.
  • The token vesting period for the project team is 3 years. While it's a shorter period than used for non-blockchain start-ups (typically 4 years), it's longer then lots of blockchain start-ups have (6 months-2 years). Longer vesting period means that team is more incentivized to stay with the project and actively evolve it.

  • The code of the smart contract that will be used for ICO has not been published yet. While Ink Protocol team claims they are working with Quantstamp on security audit, we were not able to find any public docs that would explain audit methodology and results. It is a good practice to have the code of the contact being published (e.g. on a GitHub) far prior to the ICO itself so a public audit can happen. We contacted the team members via Telegram asking for more information and explanations.

Overall, after the detailed due-diligence investigation, we are glad to grant Ink Protocol (XNK) project a due-diligence certificate for passing ICO Index verification with a result ‘Verified’. For more information about Ink Protocol please visit their profile.

Images from

Short report on current SCAMs and suspicious ICOs

When we wrote this article about the reasons we have marked BitConnect as an outright fraught there were people who clapped and people who called us names. This combination of love and hate was a clear signal, that we are doing something right. Finally, The Texas Securities Commissioner has entered an Emergency Cease and Desist Order against BitConnect. Good move Texas.

Our SCAM and Suspicious category are getting more and more attention.

There are some new projects in those categories that we would like to warn you about.

Quick tip: Sign up for ICOindex Weekly ICO digest here. You will get a weekly digest of verified ICOs together with SCAM warnings.

Othor project

Vitalik Buterin as your coder? The other identities are probably stolen. Recently created a Twitter account with more than 66% fake followers. Don´t deserve more time.

Case closed.

Bitedu (BTEU)

We considered this ICO as a scam due to:

So stay away from this!

Bitrent (RNT)

Why is this project suspicious?

  • One-third of their Twitter followers seem to be fake (source: ).
  • Some of the team members don´t have (public) connection with Bitrent, or they do not have working links in their profiles on the web.
  • False statements about their primacy in property blockchain platforms. There are many others which were earlier.
  • False statements about "developed wide range technologies", iOS app is missing in Apple Store.  We also couldn't find any parts of the platform (on their websites or GitHub).
  • Misleading information about used technology and platform. In the whitepaper, they claimed, "token will be the ERC-20 standard", but on their blog, they claimed to choose of Hyperledger, which is not compatible with ERC-20 tokens.

We asked team twice for clarification of our findings. Neither first answer nor second we didn´t consider their answers as a sufficient.

Totum (TMC)

Why is this project suspicious?

  • People participating in Bounty campaign didn´t get paid (also Bounty manager of this campaign).
  • Empty Github.
  • Misleading claims about partnerships. Some are not closed, some should be with games, which are not alive anymore.
  • Lack of technical details of the platform.
  • Lack of transparency in communication (changing ICO dates was not announced clearly).

Do you want to get a weekly digest of verified ICOs together with SCAM warnings? Sign up for ICOindex Weekly ICO digest here.


How to secure your cryptocurrencies - Beginners Guide Series

Over the course of last years, cryptocurrencies are rapidly becoming a part of our daily lives. Whether you are just considering entering the space by buying some crypto or already have one, it’s critically important to ensure you store your assets in a robust and secure way. Bitcoin history is full of incredible stories when people lost millions of dollars when accidentally throwing their hard drive away or simply forgetting their recovery password.

In a world of classic money (or so-called “fiat”), most of us have developed a good set of practices to keep our money safe. This post will help you to to get a basic understanding of how to apply these principles to a brave new cryptocurrencies world.

When we think about protecting our money from being stolen, we typically consider several measures of protection.  

Physical access protection as most of us don’t keep bags full of cash in a closet (unless you are the Barry Seal), we prefer to keep it in a well-secured place like safe or bank deposit box. We know that the more secure the safe is, the more our money is protected from theft.  Electronic access protection is even more critical nowadays as most of the times we keep money in our bank account and access them whenever we need them. Using electronic cards we know that we should never enter the card number and security code to untrusted online systems, never write our PIN on a backside of the card. When working with online banking systems we prove our identity with client number, password, and two-factor authentication code. We also ensure that we connect to the right banking site by checking SSL certificate in a browser and keeping our laptop/tablet/phone secured by anti-malware software.

Cryptocurrencies (like Bitcoin, Litecoin, Monero, etc) are based on a blockchain technology, which is secured by design and cryptographically guarantees that no one can get access to your data (read money) unless they have keys. Think about a blockchain as a most reliable safe that was ever invented by humanity or as an ultimately secured bank account that no other person can steal money from, including people from the bank themselves.

So if blockchain is so secured, is there a weak spot that we should care about and protect? Absolutely and it’s your private key (further referenced as PK [1]) The only way to open your crypto-vault is to use the unique PK that opens this most-protected safe in a world. Think about it as a  key from your safe, PIN from your card, password from your online banking system and think about similar concepts to protect it as you would do for fiat money. Remember, your crypto money is as safe as your Private Key is secured.

Here are basic principles you should follow to keep your crypto secured:

  • Protect your private key from unauthorized access
    • DO NOT share your private key (PK) with anyone
    • DO NOT store the PK on laptop/tablet/phone in a plain text
    • DO carefully choose a crypto wallet that will manage your PKs. Untrusted or compromised software can steal your PKs and your money. For storing a large amount of crypto, consider using hardware wallets like Trezor or Ledger.
  • Make backup copies of your PK
    • If you lose your PK, there is no one and nothing that would help you to get access to your crypto again. Nothing and no one.
    • DO encrypt your electronic backups and ensure your take backup on a system that is not compromised by malware. Regular check your system with antivirus and protect with a firewall.
    • DO make an offline paper copy of your PK recovery seed and keep the copy in a secured place. Bank vault or notary might be a good choice. If you want to ensure your offline backup is virtually indestructible, you might want to get something like Cryptosteel.

Follow these simple guidelines to protect your crypto-assets and enjoy the convenience and freedom this technology gives us.



CryptoKitties Showed why Scarce Digital Assets are the Future

Ethereum, the second biggest crypto project, is mainly used for two things right now: raising money through an ICO and breeding CryptoKitties. If you haven’t noticed (which would be very surprising), here is what it is all about:

CryptoKitties is a game centered around breedable, collectible, and oh-so-adorable creatures we call CryptoKitties! Each cat is one-of-a-kind and 100% owned by you; it cannot be replicated, taken away, or destroyed.

This project took off so well that it clogged Ethereum network and forced many ICOs to postpone their Token Generation Events. One example for all is a postponed ICO of a promising project SophiaTX.

CryptoKitties maybe sound like a joke to you and I am sure the founders are having a blast with it, but it showed why scarce digital assets are the future. Why?

Before blockchain, it was impossible to create a scarcity of digital assets.

Blockchain changed it all. However, scarce coins are just a beginning.

CryptoKitties are basically a better version of a Tamagotchi. You can not break it, forgot it somewhere, you can not go out of batteries and it will not stop working because of poor hardware made in China. On the top of that, you can be sure that your kittie is unique, you can easily trade it and breed new ones. It is fun, it is addictive and it is a serious business.

CryptoKitties are digitalized and tradeable Tamagotchi. So what else makes sense to digitalize?

Enter the world of virtual reality

Once the humans start to spend their time in virtual reality there will be a hunger for everything that humans love to have, to wear, to collect, to use in the real world. There will be a huge space for cryptowatches, cryptowear, cryptojewelry, cryptohouses and cryptoeverything. Because human needs will not change in virtual reality we will still want the same things and experiences.

It is still a long way to get there, however, augmented reality is a bit closer. Look at how the Snapchat and Instagram filters exploded in the last years. Once we create contact lenses that enable us to add filters to the real world we will see a huge demand for scarce digital assets that people can collect, use and wear.

It is not that difficult to see where things are heading. The big question is how we can leverage that.

ICO Investing Series Part II: Elimination criteria for picking long-term token investments.

In the previous article we have looked at the ICO market in general and today we will look at criteria for choosing a project for long-term investment.

It needs to be said that no one in the industry has the best or a certain way how to judge an ICO investment opportunity because the crypto space is so new and so dynamic. Here are some criteria that we use and that we see other industry experts to use. Please always use your own judgment and do not take anything in this article as an investment recommendation. There are still too many unknowns so something that we think is the right way to judge an ICO project today might be proven wrong in the future.

Is it SCAM or not?

This is the first question, that one needs to address. There were a lot of investment opportunities during the last 12 months, but there were many SCAMs as well. A part of our mission is to alert our readers our such projects. There were so many of them lately, that we have decided to write this article about ICO SCAM characteristics. Anytime you are not sure if an ICO project is SCAM or not, read the article. Sometimes it is very easy to see it at the first glance, but sometimes the fraud is much more sophisticated.

Red flags:

  • Their community focuses mainly on the investment part promising guaranteed results
  • Lack of information about team members’ history
  • MLM scheme and referral program are involved
  • The whitepaper has very low quality or is missing
  • There is no new technology being created
  • The business model is not sustainable
  • There is no or weak roadmap


We have talked about this in the last article a little bit, but let’s expand on this topic in more depth. Today is quite easy to find a digital traces of almost anyone who is working in the blockchain space. You can check out their social profiles, youtube videos, blogs and companies they were part of. Many time you will find that those people are true technology experts with proven track of results, however, sometimes you will find that they were part of suspicious ICO projects or projects with no results. Sometimes you can not find them at all, which is a huge red flag as well. You can learn the same way about their advisors to double check whether they really advise the project or not.

Red flags:

  • Lack of information about team members’ history
  • Team members were part of suspicious ICO projects
  • There are more advisors than team members
  • The project’s nature does not match the team members’ experience and skills

Technology, whitepaper, and roadmap

Project’s whitepaper is one of the most important pieces of information that you need to read before you decide to invest. If you want to see a good example of a well-written whitepaper read Ethereum whitepaper. Its quality lays in bringing new and useful ideas that are clearly explained and sourced without being too wordy or hyped. When reading a whitepaper ask yourself following questions:

  • Do they actually create a new and useful technology?
  • How do they plan to acquire the critical mass of users and customers?
  • How do they want to solve scalability?
  • How do they solve security?
  • How well are they communicating their ideas?

The same way it is necessary to carefully read the whitepaper it is necessary to inspect their roadmap to map the claims from their whitepaper to tangible promises and timelines.

Red flags:

  • Plagiarism
  • No new technology is being created
  • Missing whitepaper
  • Untested hypotheses
  • Assumption, that mainstream user/customer cares about the underlying technology

Tokenisation model

There are great articles written about this by William Mougayar. Here is an excerpt from one of his articles:

The assumption that everything with a potential network effect is going to work with a decentralization starting point is not entirely true. The blockchain is not for everything.

The solution or product being developed needs to have a solid business model linkage that has a particular value when decentralization and/or tokenization of actions take place. The promise of a new model needs to be very compelling.

In the name of decentralization, the promises are big. You can’t just slap a token to anything, and expect magic to happen.

The token is not the business model. The value proposition or utility that is enabled by the token is the business model, and that linkage needs to be there early on. If the direction is not right, the chosen path will not lead to a good place.

Here is another valuable article on the same topic.

Red flags:

  • Unclear role, purpose, and features of the token

Product / Market fit

Many projects solve a problem that is not painful enough for people to care. This might be an example of Bancor, which happened to be one of the most successful ICO in the terms of amount of money raised. Bancor should allow investors to buy and sell any crypto assets. However lately this need has been questioned several times, because if a crypto asset is valuable, then some exchange will list it.

“Founders of ICOs most of the time have just a hypothesis about the problem that needs to be solved, but if it is a real problem will be decided by the market.”

Red flags:

  • Untested hypothesis about the problem they want to solve
  • Not existing MVP, prototype, testnet or any other proof that their idea solves a real problem

Is blockchain really necessary for the project?

Even though the team brought really well defined and painful problem that needs to be solved, there is still a question if a blockchain is necessary for that. Blockchain technology is still slow and expensive. It is necessary to ask how blockchain will help this project to be faster, more useful, more resilient and valuable? It is also necessary to ask if customers desire those characteristics in this case. Do they desire a trustless and decentralized solution for this problem? Do they want to pay extra for it? The truth is that companies want to use blockchain because it is trendy. This company increased its valuation by 394% just by adding blockchain to its name.

Red flags:

  • The role and necessity of blockchain is not clearly demonstrated


Timing is one of the most important factors. Similarly to the dot-com bubble, there will be companies who try to realize a vision that the market or the technology is not ready for. It is important that someone pursues such vision. The question is that if you want to pay for it.

Red flags:

  • Not existing MVP, prototype, testnet or any other proof that their idea can be adopted by the market


The voice of a project’s community tells a lot about the nature of the ICO. Do people follow the project, because they care about the technology, their innovation or is it just about making a quick buck? Which authorities support and talk about this project? How many followers they have in total?

Red flags:

  • The project’s community promotes the project only for investing purpose without any interest in the technology.
  • The project has many fake followers or bought likes on social media.
  • The ICO project communicates fake or misleading information.


At the end it is necessary to ask some more questions to find out if this makes sense for you:

  • What is the valuation of the project?
  • What is the market size?
  • How much of the market can they take?
  • What are my goals for this investment? What is the target price I want to sell this at?
  • Are the funds in a multi-signature wallet?
  • Is the team going to destroy or redistribute a significant part of unsold tokens?
  • Is the token distribution coming directly from a smart contract?
  • Is there a cap on funds raised?

This should be enough for this time. What are your thoughts on this topic?

Next time we will look at a strategy for short-term speculation.

ICO Investing Series Part I: Lessons Learned From the dot-com Bubble

Contrary to Bitcoin, which has found its users by organic growth, ICO projects (Initial Coin Offerings) are supported by initial investments. These investments are made by a large number of investors who receive project’s tokens in return. The underlying thought of ICO projects is not only to create a new currency but to bring decentralization to an existing market or to create a new market. ICOs were booming like crazy this year receiving more than 3bln USD so far. No wonder many compare the current state of the ICO market to the dot-com bubble.  

Just another "dot-com" bubble?

At the time the internet started to be adopted by the mainstream in the 90s, the majority of investors were blindly buying shares of internet companies hoping to make quick and easy money. Especially in 1999, it looked like it does not really matter which company you invest in. The stock prices of internet companies were skyrocketing and almost everybody had a feeling that the stock prices will continue growing forever. For example, a company called (e-commerce selling pet supplies) raised more than 300 mils. USD in their IPO. Unfortunately, the management of the company later found out that the market does not need their startup idea as much as they thought. A similar thing happened to the majority of internet companies from that era. It did not take long for a stock market correction to come resulting in 80% market drop. Only companies such as, which were solving real problems and real customer needs, survived. So does it make sense to invest in newly born ICOs or are they bound to have a similar destiny like most of the companies from the dot-com bubble?

Raising hundreds of millions of dollars is not the only necessary component for long-term success

Many cryptoinvestors did not know that a pile of money is all that a team needs to succeed. Unfortunately, they learned it the hard way. Maybe you have noticed this article from Reuters, which talks about Tezos project. The founders of Tezos are currently suing each other to gain a control of their hundreds of millions of dollars worth of funds. This is unfortunately just another example of a project that is turning the wrong direction due to its overfunding. This is not a very intuitive rule, but the reality shows over and over again that a company that raises too much too soon loses its “mind”. So next time you see an uncapped ICO with no limit per investor please remember of Tezos.

Another criteria, which many projects fail to pass, is a solid team. Vitalik Buterin, the founder of Ethereum, had experiences from being part of crypto projects before he cofounded Ethereum. This is not a case of the majority of today’s teams. Not only they do not have experiences from previous crypto projects, which would be reasonable to understand since it is a new field, but they sometimes do not have a reputable history at all! Sometimes you can see ICOs that exploit identities of known advisors. Apart from other things we check this during our due diligence. So the projects we verified do not suffer this problem. Luckily there are projects such as Basic Attention Token, which has an all-star team led by the founder of Javascript and co-founder of Mozilla and Firefox. However all-star team does not guarantee success as well. According to Bill Gross, a well-known investor, and entrepreneur, the most of the startups fail due to bad timing. Companies like from the bubble are an example of this.

Investing in ICO projects is not for everybody like many ICOs suggest, however, if you know what you are doing, you can make a good amount of money. Most of the investors are buying tokens that will never substantially grow in value or that are outright scams. So in an article that will follow, we will describe how to eliminate the wrong ones.

But before we continue with the next article let us ask you: Which projects do you currently considering to invest in? Let's share to have a fruitful discussion.

Why has ICOindex labeled Bitconnect as an outright fraud?

The ICO industry has been growing unbelievably fast throughout this year. Unfortunately, apart from revolutionary projects, there is a significant number of suspicious ICO projects and outright Cryptocurrency SCAMs. We feel very strongly about keeping ICO industry transparent so when we come across a dirty fraud such as Bitconnect we cannot stay silent and just observe. In this article, we will dive deep into reasons why we think Bitconnect is a Ponzi scheme.

The irony of the current state of ICO industry

Let’s start with a short story. True one. Last week we received this email from an ICO founder who was interested to know how to get listed on our platform. We sent him our terms and received the following answer:

“Please excuse me, i don` want to be rude. But how much of a idiot does somebody have to be in order to pay close to ***$(censored by editor) and then you can say ’We reserve the right to mark any ICO project as suspicious if the project communicates fake, incomplete or misleading information.’”

So we answered them along the following lines:

“We reserve the right to mark a project as suspicious to protect visitors of our page, who trust us to bring them an independent view on ICOs and who visit us to find projects to invest in. Without this right, we would not be independent. Look into the suspicious and scam category to understand which kind of projects end up there to judge whether your project fits in that category (I hope it does not ;)...”

To our surprise, we received the following answer:

First of all let me just clarify one thing: i think that you are wrong to classify an ICO as a scam. And by this i make a direct reference to what you say (for example) about Bitconnect. The idea is that you made it a scam, but it seems everything is fine there. I, myself, am a user of Bitconnect and i think i can understand it pretty good.“


Let’s make this even more clear. There is an ICO founder who:

  1. accuses us of being incompetent to judge if an ICO project is a SCAM AND
  2. brings Bitconnect as the main argument of our incompetence AND
  3. says he is a user of Bitconnect AND
  4. says he understand Bitconnect pretty good.

So he is either A) not able to judge correctly if Bitconnect is a fraud or B) he knows that Bitconnect is a fraud but he does not care. Option A is more probable in this case. He just thinks that Bitconnect is an example how legit ICO projects should look like. Poor guy. Poor investors. By the way, we dug into his ICO and it does look a bit suspicious. Oops!

This story shows how SICK this industry is right now. There are people who are consciously running frauds and on the top of that, there are people who believe that this is how legit projects should look like so they copy some of their characteristics.

This is the very reason why we decided to write this lengthy article about a Ponzi scheme called Bitconnect.

Bitconnect is an outright fraud and a Ponzi scheme

First of all, let’s clarify common characteristics of a Cryptocurrency SCAM project.

Now let’s elaborate on each point.

Marketing communication focuses mainly on the investment part, promising high and guaranteed returns.

The conference has everything that an MLM Ponzi scheme needs: Expensive car giveaways, rewards for the top promoters (read: top scammers), money falling from the sky, you name it they have it.

"If it seems too good to be true, it probably is"

There is not enough information about team members’ history and achievements.

There is no information on the official website who is actually behind this project so we could not do a background check on the team members. No wonder they do not want to expose their true identity. Who would?

MLM scheme and referral program are involved.

No more needs to be added here...

The whitepaper has very low quality or is completely missing.

Bitconnect has no whitepaper at all.

There is no new technology created

As you can see there is only one person that made GitHub commits to Bitconnect source code, moreover the person is anonymous. There are very few lines of code because creating a Ponzi scheme is just so simple.


Bitconnect has very few lines of code in their GitHub repository because creating a Ponzi scheme is just so simple.

The business model is not sustainable.

More than 90% of all BCC tokens are traded on their internal exchange. This allows them to manipulate the price the way they want. There is no wonder respectable exchanges such as Bittrex, Bitfinex, Poloniex, and others will never list Bitconnect at their exchange because it would make them indirectly responsible for this massive Ponzi scheme.

Let’s do some math to see why Bitconnect is not sustainable at all.

This a simplified formula for calculating compound interest:


A = the future value of the investment/loan, including interest

P = the principal investment amount (the initial deposit or loan amount)

r = the daily interest rate (decimal)

t = the number of days the money is invested or borrowed for


According to this table, Bitconnect promises up to 40% Per Month + 0.25% daily interest for amounts higher than $10 010. For simplification, we count in this example with their maximum promise of “up to 40% Per Month” and with 0.25% daily interest that Bitconnect promises to pay their users.

$10,010 invested in Bitconnect, in 1 year, compounded 0.25% daily interest and compounded 40% monthly interest provides: $1,411,789

$10,010 invested in Bitconnect, in 2 years, compounded 0.25% daily interest and compounded 40% monthly interest provides: $199,115,595

$10,010 invested in Bitconnect, in 3 years, compounded 0.25% daily interest and compounded 40% monthly interest provides: $28,082,830,383

This is a clear unsustainable Ponzi scheme.

There is no or very weak roadmap.

The roadmap of Bitconnect includes only mainly PR, marketing, promotion, and conferences.

See for yourself:


Ponzi schemes are ruining the reputation of the whole crypto-economy. Before Bitconnect there was Onecoin, (now defunct), and there will be more Ponzi schemes like Dascoin, ETHconnect and many others.

If you are not sure whether something is a scam or not ask us on our slack channel and do not forget to subscribe to our newsletter.

If you know about another Ponzi scheme, please do let us know immediately and we will list them in the ICO SCAM category to prevent as many investors as we can from losing their money.

Additional sources: