So...Texas issued a Cease and Desist to Bitconnect today to stop them from conducting business with Texas residents. Admit it: your first thought was, "ah hah! I knew it was a ponzi scheme!" Here it is, if you haven't seen it yourself:
https://www.ssb.texas.gov/sites/default/files/BitConnect_ENF-18-CDO-1754.pdf
This Order very clearly, and pretty accurately, describes the whole Bitconnect program. The complaint is simply this: Texas is calling Bitconnect a "security," but Bitconnect isn't registered with their State Securities Board or the Securities Commissioner. Additionally, Bitconnect affiliates who promote it ("sell" it and get commissions when other people invest) are not registered/licensed to trade securities.
So, no, the complaint isn't that it is a ponzi scheme.
But here is the best part, and nobody seems to be connecting these dots yet: on the one hand we have Texas claiming Bitconnect and other cryptos meet the definition of financial "securities", but on the other hand we have the IRS saying it isn't (so it will be taxed as ordinary income instead of capital gains). Hysterical. Seems to me that you can't have it both ways.
Here's the final word: if you can't afford to lose 100% of your investment in Bitconnect, or Davorcoin, or any other cryptos, you have no business messing around with it. If you haven't discovered Bitconnect or Davorcoin, click on my Texas-unapproved affiliate links below, and sign up for an account. Throw $100 in there, or more if you ain't skerred, and watch the magic. Unless you live in Texas.
Bitconnect -- https://bitconnect.co/?ref=cryptoblu
Davor -- https://davor.io/Account/Registration?r=B89EA2