One Year Ago the Crypto Community Saw the Inevitable BitConnect Crypto Ponzi Scheme Collapse
There are moments of solemnity that hurt in their earnestness. And then there are moments where the absolute hilarity of these times are exposed. This is the latter.
As Twitterati Crypto bobby reminded us how a year ago people who knew little got scammed by taking advise from people who knew even less.
What was the whole story?
Bitconnect [BCC] was an open-source cryptocurrency which described itself as a ” high-yield investment program,” but was widely derided as a Ponzi scheme. Bitconnect was founded in 2016 with the intention of allowing users to lend Bitcoin and earn interest.; at the same time, its native currency acted as an alt-coin.
The first clouds of concern formed when, in late 2017, the UK government issued notices to the company. This was followed by a cease and desist order by the Texas State Securities Board, followed by other American states. The whole thing was soon labeled a Ponzi scheme for failing to have any user earnings transparency and issuing statements deemed misleading.
Soon after, Bitconnect shut down, and BCC prices crashed from around $460 to $5.
Learning from the past
While Bitconnect had announced that it would be returning the money that was loaned in its system, not many can claim to have got anything back, as the payments were made in BCC, whose value had crashed by over 90 percent.
Taking aim at both get rich schemes and people with little knowledge about this nascent tech, Crypto bobby tweeted to remind everyone:
” BitConnect exit scammed on a bunch of people who “lent” locked-up Bitcoin that would yield them 1% daily interest, on the sound advice of YouTubers who didn’t graduate middle school.”
One year ago, BitConnect exit scammed on a bunch of people who “lent” locked-up Bitcoin that would yield them 1% daily interest, on the sound advice of YouTubers who didn’t graduate middle school.
Never 4get https://t.co/jXznEQvByC
— Rob "Crypto Bobby" Paone (@crypto_bobby) January 12, 2019
Since then the landscape has changed considerably, many countries have enacted and enforced stricter regulations.
After the bloodbath of November, many investors are far wiser and cautious before looking into any such schemes. This is certainly a good sign that the industry seems to be maturing and learning from experiences, both good and bad.