One year later: The rise and fall of the crypto ponzi scheme BitConnect

16 Jan, 2019
by Ryan Boltman
News
One year later: The rise and fall of the crypto ponzi scheme BitConnect

BitConnect was like any other altcoin floating in the midst of obscurity, not really doing anything substantial or being noticed for anything spectacular. In a matter of one year, the project would break into the top 20 and eventually disappear into obscurity.

January 2017, BitConnect manages to break into the top 100, sitting at 98 with a measly market cap of $873,708. and trading at $0.17. The project begins picking up steam when social media influences tout the pyramid scheme-type lending platform as the next big thing. 

Soon "how to" videos are going up on YouTube showing potential investors how they can buy BitConnect (BCC) and lend it on the platform for daily returns. The whole operations appears to be operated like a ponzi scheme. This deters some potential investors, while others are drawn in by the eventual hype of the project. 

Image from Gyazo

BitConnect would slowly build a cult following over the course of 2017, leading up to become one of the most popular projects in the top 100, mostly due to the massive marketing employed by YouTubers as well as hosting of events. 

Recap: RIP BitConnect, we hardly used ye (hopefully)

BCC would climb to an all time high of $470 in late 2017, jumping into the top 20 coins. The fomo and bull run catapulted BCC into crypto stardom. The ability to earn residual income through BCC tokens meant people would jump on board the hype train as everybody wanted a piece of the pie. 

Image from Gyazo

In the space of roughly two weeks following the ultimate success of BCC, the rumors began to swirl about the project operating like a ponzi scheme. Class Action lawsuits cropped up in the USA regarding the operations of BitConnect. Once the rumors started flying, the price started dropping. 

BCC dropped from $422 down to $18 in the space of two weeks following the news. With just about everyone panic selling their coins.

Jan 7, 2018

Image from Gyazo

Jan 21, 2018

Image from Gyazo

One year later and BCC is all but a relic of the past. Currently not tradable on any exchange, the last price update saw BCC at $0.67. 

Rest in Peace to the biggest cryptocurrency ponzi coin in history. 

  

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