From Wikipedia, the free encyclopedia

Bitconnect (BCC) is an open-source cryptocurrency which has been described as a high-yield investment program. Bitconnect experienced a major crash on 16 January 2018 in which the market capitalization (supply multiplied by the unit price) went from 2 Billion USD to 130 million USD, a 15-fold decrease.[4] The crash has been described[by whom?] as an indicator of a wider crash of other major cryptocurrencies.[5] The site has also been advertising an initial coin offering for Bitconnect X (BCCX) as an “open source, ponzi-ish blockchain based, decentralized cryptocurrency.”[6]

Criticism and collapse

Bitconnect has been suspected of being a Ponzi scheme[7] because of its multilevel marketing structure and because of other reasons.[8][9][10] The Bitconnect Coin was among the world’s top 20 most successful cryptocurrency tokens until its price plunged 65 percent starting January 3, 2018. Shortly after, on January 16, it announced it would shut down its cryptocurrency exchange and lending operation after regulators from Texasand North Carolina issued a cease and desist order against it.[11][12][13][14] After BCC hit an all-time high of US $463 in December 2017, it declined to US $5.92 as of January, 30, 2018.[15]

Bitconnect has said it will refund all outstanding loans at a rate of US $363.62 to the Bitconnect Wallet in form of BCC.[9][16][17]

A video of a keynote speech by Carlos Matos[18] at a Bitconnect event has since gone viral and become an Internet meme.[19][20]

References

  1. ^ finder (2 January 2018). “What is BitConnect (BCC) and how does it work? – finder UK”. Retrieved 30 January 2018.
  2. ^ https://coinmarketcap.com/currencies/bitconnect/
  3. ^ “BitConnect (BCC) price, charts, market cap, and other metrics – CoinMarketCap”. coinmarketcap.com. Retrieved 30 January 2018.
  4. ^ “BitConnect Cryptocurrency Market Capitalization”.
  5. ^ Cuthbertson, Anthony (2018-01-17). “Is this “Ponzi scheme scammer” to blame for bitcoin’s price crash?”. Newsweek. Retrieved 2018-01-18.
  6. ^ “Crypto Lending Site’s Shutdown Renews Ponzi Scheme Claims”. Bloomberg.com. 2018-01-17. Retrieved 2018-01-18.
  7. ^ Popper, Nathaniel; Bowles, Nellie (2018). “Bitcoin Falls Below $10,000 as Virtual Currency Bubble Deflates”. The New York Times. ISSN 0362-4331. Retrieved 2018-01-18.
  8. ^ Williams, Sean. “BitConnect, Alleged Crypto Ponzi Scheme, Shutters Its Lending and Exchange Services and Plunges 92%”. The Motley Fool. Retrieved 2018-01-18.
  9. ^ Jump up to:a b Tepper, Fitz. “Bitconnect, which has been accused of running a Ponzi scheme, shuts down”. TechCrunch. Retrieved 2018-01-18.
  10. ^ Cheng, Evelyn (2018-01-17). “Digital currency plunge may be healthy for cryptocurrency market”. CNBC. Retrieved 2018-01-18.
  11. ^ McKay, Tom. “BitConnect, Anonymously-Run Crypto Exchange, Crashes After States Issue Cease and Desists”. Gizmodo. Retrieved 2018-01-17.
  12. ^ “BitConnect Closes Exchange as States Warn of Unregulated Sales”. Bloomberg.com. 2018-01-16. Retrieved 2018-01-17.
  13. ^ Swearingen, Jake. “The Rise and Fall of BitConnect, the Sketchiest Crypto Exchange”. New York Magazine – Select All. Retrieved 2018-01-17.
  14. ^ “Crypto News Update”. NASDAQ.com. 2018-01-17. Retrieved 2018-01-18.
  15. ^ “Coin Market Cap BitConnect (BCC) Price (01-30-2018)”. coinmarketcap. January, 30, 2018. Retrieved 2018-01-30. Check date values in: |date= (help)
  16. ^ “Changes coming for the Bitconnect system – Halt of lending and exchange platform”. BitConnect. 2018-01-16.
  17. ^ “Bitconnect Shut Down it’s Lending Platform Officially for Good”. TechScoop.in. 2018-01-16.
  18. ^ “Carlos Matos (@CarlosMatos80) | Twitter”. twitter.com. Retrieved 2018-01-31.
  19. ^ Mix (2018-01-17). “How BitConnect pulled the biggest exit scheme in cryptocurrency”. The Next Web. Retrieved 2018-01-30.
  20. ^ cryptomeme (2018-01-18), BitConnect :New Music Video Carlos from NY- hey hey hey, retrieved 2018-01-31

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