BitCrowdy alleges to be Europe’s fastest-growing bitcoin wallet, where investors can earn up to 6% weekly for depositing their crypto on the platform.
Scam here and there. In this article, we review the supposed investment platform with the question, “is Bitcrowdy legit?“
Before we jump in, it is worth noting that the rise of cryptocurrencies has led to a conception of companies and websites ‘claiming‘ legitimate ways for investors to earn money on their holdings.
Bitcrowdy is one such platform, and our conclusions advise that there are many ‘Ponzi-like red-flags‘ that prospective users need to identify before putting money into this scheme.
Is BitCrowdy Legit? Here’s What We Found Out
First of all, BitCrowdy labels itself as “Europe’s fastest-growing bitcoin wallet,” and then as Africa’s No 1 Finance App. There are no numbers to back up the platform’s assumed reputation, and the domain is less than six months old.
As reported from the data below from ICAAN, the domain is hosted with NameCheap and was only created in late September 2020.
Scam Red-Flags on BitCrowdy
Falsified Publications
One of the most apparent reasons for possibly calling Bitcrowdy a ‘scam’ is because the platform falsely claims to be published on popular financial publications such as Yahoo Finance, CNN Money, Forbes, Business Insider, and Wall Street Journal. BitCrowdy Isn’t Published in Any of These Magazines.
Our BitCrowdy review shows that no article about the platform exists on these publications, and claims that the company has raised $1 billion is merely a ploy to make unsuspecting investors trust it.
Outrageous Returns
Bitcrowdy attracts investors by promising a 6% weekly returns on bitcoins deposited on the platform. These would equate to a 24% monthly return and a 288% annual return. These figures are staggering compared with legitimate platforms where people can earn interest in cryptocurrencies.
For instance, BlockFi, Nexo, and Celsius Network payout between 6-9% annual percentage yield on BTC deposits. These platforms also specify their profit source, which generally comes from over-collateralized lending to retail and institutional clients.
For Bitcrowdy, nevertheless, the company does not disclose the “mysterious” business from which it pays out the supposed yield. The scheme also claims that American Bank, Merill Lynch manage the funds. Well, we couldn’t find any trace of BitCrowdy on the official Lynch Website. Merrill Lynch Has No Information on BitCrowdy
Participants of the scheme who spoke to Cryptonetwork.news on the condition of anonymity disclosed that the platform is closely linked to another ‘bogus’ investment scheme, Agrisunfarms.
Users must deposit bitcoin funds for the supposed “poultry farm” they hold on BitCrowdy because options like credit cards and PayPal are inaccessible. This relationship seems to be a deliberate attempt to force people to hold bitcoins on BitCrowdy; thus playing into the masterminds’ hands.
No Official Customer Support
Legitimate bitcoin investment sites offer a large-scale customer support desk to cater to their userbase. Unexpectedly, there is no way to reach the team behind this scheme. A “Contact Us” button on the website points to a non-existent Facebook Messenger account.
Final Words on BitCrowdy
Going by the red-flags identified so far, our best guess is that BitCrowdy is not legit. It is another ploy to separate innocent investors from their hard-earned bitcoins.
The platform will likely go offline once the masterminds believe they have enough BTC deposits to cover the cost of setting up and marketing the platform to date. Anyone contemplating investing any funds into the platform is doing so at their own risk, as we’d never recommend doing so.
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