If you’ve came to this page then you’re probably wondering is Pagarex legit, or another website in a long, long list of scams before it?
Personally, I think Pagarex is legit, but that’s not the question you should be asking, and I’ll tell you why further on in the article.
At the beginning I think these websites that offer loans similar to Pagarex to the community at a high rate have good intentions. I think Bitconnect at the beginning had good intentions, and perhaps they still do. If you were involved with the Bitconnect fiasco then you’ll understand that it all began to go wrong when Bitcoin’s price more than quartered in less than a month. From $19,000 all the way to $5000. They just weren’t able to keep paying out loans at the rate they were. Bitconnect’s entire business model was built on the price of Bitcoin in a constant upward trend, and to be fair, that isn’t a great business model. Full disclosure, I invested 1 Bitcoin into that platform, but if I had just kept it in my wallet, then I would have received twenty times that which I had received from there. So ultimately I did lose, and this is the price that I paid for my hassle. I’m not bitter, it is what it is.
Bitconnect paved the way for several other lending platforms out there; we’ve seen the rise and fall of Davorcoin. Lendconnect has made it’s way into the forefront of the cryptosphere, and now something called hedgeconnect, which personally, I don’t hold much faith in. Now we see the rise of Pagarex, which is a big platform. It has sold out all of its coins already, so if you’re looking to get any you’ll have to wait until it hits some of the major exchanges. Always a good thing with these places that sell out before the ICO ends — you know the coin is going to be in high demand.
Yes. Of course. Look how much work and attention to detail has been put into their platform and the marketing material. It looks as if they have spent a good time creating all of this. You will be able to trade their coins soon and I’m sure of it. But that’s really not the question you should be asking here folks. Asking if Pagarex is legit will return the answer, “yes, of course it is, look, I can trade their coins on popular exchanges” — what you should be asking is “will it last?”
Will it last? Will Pagarex last?
No. I don’t think so. I really don’t. At some point — be that now, or in the next five years, something will happen to the bitcoin price that will make the Pagarex loans literally unusable; they won’t be able to hedge their coin against usd because there will be too many coin owners with a HUGE balance, and the price of their coin won’t be able to sustain the loans. Bitcoin will have either dropped or had a very long period of stagnation. Think of what happened to Bitconnect. Bitcoin dumped to one quarter of it’s price; suddenly all the people invested in these loans couldn’t be paid, because there was too much money and not enough coin to go around. I didn’t believe the whole negative feedback story they gave us. It was all about sustainability.
Is Pagarex sustainable? No. Not unless they implement safeguards to stop the community from furiously dumping once their coins are released. I don’t even buy the fact that it has been the community that has dumped previous coins into the wilderness and brought prices crashing. I believe it was more so people behind the scenes that knew what was happening and got in there before anyone else. That’s just my opinion though.
In my opinion, for a lending program to be successful, and to keep its prices high then they need to be 100% transparent on their intentions, and give full disclosure of their team, and admins, and anything else that’s relevant to the project. For example, “we want to hand out loans to the community until the situation allows us to do so, and after this has become unfeasible we will want to develop and build an internal exchange,” or something to that effect. I’m not a fan of secret stuff. Decentralization is all about honesty, and accountability as well as community ownership. The whole idea enforces that mindset.
But there are pro’s to this whole thing. I mean if you get in early then you’ll more than likely see the value of your coin rocket in worth over the next few months. Early investors in Bitconnect were able to buy their bcc for mere pennies, only to watch them soar in value in upwards of $400 in the height of the whole fiasco. If you invested $1000 at the pre-ico and sold at the height; chances are you’d be a bitcoin millionaire by now. Same with Davorcoin; before their plummet in worth, Davorcoin was up in the hundreds of dollars where as far as I could understand it, early investors capitalised on a near-bargain-basement sale.
What would I do?
I’d invest early and stay away from the lending programs. Even if Bitcoin continued in an upwards trend, there’s just not enough money in the world to sustain everyone making millions each day, and that’s what it would be like if $100 investors were still at it in 2025. So just have a think about it for a while before going crazy and pumping in your entire self-worth into an unsustainable program.
I could be wrong though, I mean I have been lots of times before; people continue to scream at Genesis Mining for being unsustainable, and yet there it is, still there, still going strong after at least five years. I’d welcome it if I were wrong. I’m a big socialist at heart! I believe everyone should have the opportunity to have more wealth than they need.
Just, all I am saying in this review is be careful. Don’t put all your eggs in one basket. I lost on bitconnect; my investment there vanished quicker than an government whistleblower, and now I’m left with a small amount from that investment, but I only put in very little of my capital. I’ve been burned badly before, and I’ve learned to diversify my investments.