BitConnect described itself as an open source community cryptocurrency whose main aim was to allow people to store and invest their wealth in a non-government controlled currency, and even earn a substantial interest on investment. The community emerged on the scene back in January 2017 with the BitConnect Coin (BCC) worth $0.16 but one year later, the coin was trading at around $400.
How did BitConnect work? Investors would deposit Bitcoins on the platform and buy BitConnect Coins (BCC). Investors would then either store the BCC on their wallets and earn interest from it, like how banks work, or the investors could trade the coin and try to profit by selling them at a higher price and buying them back at a lower price, like how the stock markets work.
On the 16th of January 2018, BitConnect announced that it was shutting its lending and exchange platform which was a big deal since investors of BCC were to make money from lending out the currency (BCC) on the platform. After 24 hours, the price of BCC had fallen by 90% to roughly $17.25 but the price of the coin later rose and at the time of publishing it was trading at $82.43, an improvement but still a far cry from where it was 48 hours ago.
BitConnect claims that bad press and legal issues were among the reasons for the shutdown but people believe that it was all a Ponzi Scheme that has left thousands of people in debt even as investors cry foul on the Cryptocurrency’s subreddit (pardon the crude language used, we just embedded the reactions as they appear on Reddit):
I’m literally shaking. This can’t be happening. from Bitconnect
This cant be it. I lost everything. EVERYTHING from Bitconnect
Amidst the cry for help, there are people who have decided to help by asking any of the investors who might feel suicidal to get professional help:
800-273-8255 is the Suicide Hotline. Money Isn’t everything. Your life still matters after all of this. from Bitconnect
But there are those who couldn’t help it but go the “I told you so” way of handling things:
You guys were dumb enough to buy a scheme everyone claimed was fraud. Now live with it from Bitconnect
Read More: How Crypto-Mining Website NiceHash Lost $58 Million in Bitcoins
An article by The Verge posted yesterday states that
“In November, a Business Insider investigation discovered that “pump and dump” scams — where investor groups artificially inflate cryptocurrency values by orchestrating mass purchases of coins — were “rife” on the US exchange Bittrex. Similarly, Bitfinex, the biggest exchange by daily volume, acknowledged market manipulation on its platform in August, when it revealed that it had detected several accounts engaging in “large-scale manipulation tactics” relating to the Bitcoin Cash currency.”
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