Categories: CryptoNews

MasterCoin+ May Be the Next BitConnect

BitConnect was one of the biggest scams in the cryptocurrency world over the past few months. Unfortunately, it is not the only project that people need to be very wary of right now. MasterCoin+ shares a lot of similarities with how BitConnect operated, even though it seems the projects are not directly related.

The Worrisome Signs of MasterCoin+

It is important to note right off the bat that MasterCoin+ has nothing to do with MasterCoin, now known as OMNI. The former’s name choice is rather interesting, as it seems unlikely the team chose that name out of the blue. By tagging a plus sign onto an existing cryptocurrency, the MasterCoin+ team seemingly wanted to gain recognition quickly. It is doubtful the attempt will prove successful, though.

The worrisome signs of MasterCoin+ cannot be denied whatsoever. The entire business model raises a lot of questions, as users are asked to invest cryptocurrency for a period of 240 days. One’s daily returns will depend on how much money one wants to invest. However, these returns are seemingly fixed at all times, which automatically flags MasterCoin+ as a potential scam.

While this ERC20 token appears to be perfectly legitimate on the surface, there are some suspicious aspects to it as well. Using proof-of-stake is not uncommon as far as ERC20 tokens are concerned. The daily airdrops of free tokens based on the number of tokens one is staking in the “backoffice”, on the other hand, raises some questions. In particular, the term “backoffice” seems to indicate that users will buy currencies which remain in full control of the MasterCoin+ team at all times.

Moreover, the team advertises their ERC20 token as “simple, secure, and profitable”. There is never a guarantee that any token or currency will always be profitable, as these markets are subjected to insane volatility virtually every other day. With all of the currencies being controlled by the MasterCoin+ team, they purport to guarantee the value of this token at all times. That’s another big red flag to keep a close eye on.

Similar to BitConnect, MasterCoin+ wants users to refer as many people as possible to keep this potential Ponzi scheme going indefinitely. Although affiliate programs are quite common in the cryptocurrency world, these bonuses range anywhere from 5% to 9%. This means any person you refer who buys into the program will net you 5 to 9% of their investment amount accordingly. This money seemingly comes out of thin air, as the company does not explain how it makes money exactly or where these affiliate earnings are coming from.

Moreover, it seems users cannot become part of MasterCoin+ without a valid referral ID. That is another big problem, as there is no reason for any honest company to remain inaccessible behind a walled garden. It only further indicates that MasterCoin+ is most likely another cryptocurrency-related Ponzi scheme. So far, no one has complained about this venture, but it remains to be seen how things will play out for this particular project. All of the warning signs are certainly there, yet people will undoubtedly invest in potential scams like this one without thinking twice.

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

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