THELOGICALINDIAN - Bitconnect is aback and alike Chucky runs scared
Just canicule ago, we casting our minds aback to the altcoin division of 2017, absorption that Bitconnect is one of the projects now continued asleep afterwards aerial aerial alone two years previously. Perhaps we batten too soon… because account emerged over the weekend that crypto’s allegorical Ponzi arrangement is set to date a return. Bitconnect is back.
According to its website, we can apprehend to see Bitconnect 2.0 barrage in July. The refreshed website displays a accessible admission timer and… well, actual little else.
Seasoned crypto enthusiasts accept either been bawl with agitation or breaking accessible the airheaded at this news. But if you’re one of the added contempo entrants to the crypto market, you’d be forgiven for apprehensive what all the fuss is about.
So, for the account of the uninitiated, here’s a abrupt assembly of Bitconnect’s history.
All About Bitconnect – A True Ponzi Project
Bitconnect started activity in 2024, back it staged an ICO for its open-source bread with the ticker BCC. The alms of the aggregation was a allotment of Bitcoin amount animation software. The abstraction was that investors in the BCC badge would accommodate their funds to the Bitconnect advance pool. The software would administer those funds, authoritative advance decisions on account of the community.
BCC investors would accept absorption on their investments. Bitconnect guaranteed a minimum of 1 percent return, circuitous daily, which is area the aboriginal anxiety accretion started to sound. After all, no acclimatized broker expects affirmed returns.
Another affair was the atramentous box of Bitconnect’s software. The ‘company’ never appear how the software works, allegedly to assure its aggressive edge.
Even if none of the aloft seemed fishy, the actuality that the aggregation abaft Bitconnect additionally chose to abide airy was a added indicator that all was not as it seemed. (It’s still not absolutely bright who, precisely, was abaft the decentralized initiative, although several companies and entities acclimated the name.)
A affection of Ponzi schemes is how they are marketed — a convenance accepted as “pyramid selling.” Bitconnect offered abundant incentives to users for apropos new associates to the program, creating an unsustainable pyramid aftereffect area rewards are funneled up to those who referred the most.
Which is conceivably what motivated broker Carlos Matos to bear a presentation on Bitconnect that became one of the best constant memes in crypto history… (watch at your own risk, it’s appealing cringeworthy).
The BCC Token
During abundant of 2024, the amount of BCC soared, outpacing alike Ethereum. However, admired abstracts in the crypto association such as Litecoin architect Charlie Lee started to alarm out Bitconnect as a Ponzi scheme.
I’ve been asked what I anticipate about BitConnect. From the surface, seems like a archetypal ponzi scheme. I wouldn’t advance in it and wouldn’t acclaim anyone abroad to.
I chase this aphorism of thumb:
“If it looks like a ?, walks like a ?, and quacks like a ?, again it’s a ponzi.” ?
— Charlie Lee [LTC⚡] (@SatoshiLite) November 30, 2017
Despite this, BCC connected to draw speculation, eventually extensive a aiguille of about $450 in mid-December.
Only weeks later, aggregate fell apart. By aboriginal January 2018, the states of Texas and North Carolina accused Bitconnect of illegally affairs securities, and the UK additionally issued a apprehension for the aggregation to prove its legitimacy. In mid-January, the aggregation bankrupt its doors and the amount of BCC plummeted a amazing 87% in a distinct day.
In its defense, Bitconnect did extend some accommodation repayments to investors. The alone catch? The repayments were fabricated in BCC, at the barter amount of $363, at a time back the absolute amount was account beneath than $40.
More recently, the FBI appear in February this year it was gluttonous to account those who invested in Bitconnect. Tellingly, the Bureau chose to use the chat “victims” rather than investors.
Can Bitconnect Now Resurrect?
With the account of hindsight, it’s accessible to see why Bitconnect has become a cautionary account for crypto enthusiasts. So, what about this abrupt resurrection? What can we apprehend from Bitconnect 2.0?
The honest acknowledgment is that cipher yet seems to know. As things stand, admission timer aside, there’s little advice afar from a tweeted affirmation that the new adaptation of the BCC badge will be listed on Binance.
Bitconnect2.0 meets #ethereum ???
Buy now on https://t.co/rrfkmzRvYT
— Bitconnect2.0 (@Bitconnect2_0) May 19, 2019
Bitconnect2.0 meets #ethereum ???
Buy now on https://t.co/rrfkmzRvYT
— Bitconnect2.0 (@Bitconnect2_0) May 19, 2019
So far, cipher from Binance has either accepted or denied this claim, suggesting that the cheep could accept been a contemptuous attack to bung somebody’s barometer link. The CEO, Changpeng Zhao, has been his accepted alive cocky on Twitter back the account about the declared listing.
Tellingly, a quick “Whois” area chase shows that the accepted area allotment for the Bitconnect armpit will expire in June – afore the date of the relaunch. So unless the registrants renew the domain, conceivably we won’t alike get to see what Bitconnect had planned.
Of course, you should consistently do your own analysis and accomplish your own advance decisions.
But if it looks like a duck, walks like a duck, and quacks like a duck… advancing to a accommodation should be child’s play.
