The internet was shaken for days as BitConnect set out a massive Ponzi scam in 2018. So, what exactly was BitConnect, and how does it all go wrong? Read on to know the details about BitConnect.
Many people thought BitConnect was weird from the start because of how it worked and what it did. User’s BitConnect coins could be loaned out, earning capital income in exchange. Being a BitConnect client, you would pay them your Bitcoins, and then they would utilize a “trade bot” to create enormous profits on your capital. To generate a profit, this currency was dependent only on another coin. Many people found it suspicious.
When BitConnect grew in popularity, more people started talking about it. This coin’s popularity skyrocketed thanks to the help of well-known internet personalities, including Youtube personalities, Insta influencers, and others. With its daily incentives and return guarantees, many thought this firm might make them billionaires. And as its worth grew, so did the number of individuals who invested in it.
The potential opportunity presented by BitConnect had piqued the interest of an increasing percentage of Bitcoin owners. And there were some prominent participants of the cryptocurrency market professionals who were quick to expose it as an unrefined Ponzi scheme.
BitConnect did not last long. The firm was incorporated in 2016, and the Texas State Security Commission filed a stop and stopped order against it in 2018. The board took this action because BitConnect was a Ponzi scheme. BitConnect’s failure to be completely upfront about user revenues added fuel to the fire. BitConnect was then formally closed barely two weeks after the board took action.
It’s possible that you’ve not heard of Bitconnect, an autonomously managed site where users can lend their cryptocurrencies in exchange for large profits based on the duration of their lending. Many individuals have made millions thanks to the Bitcoin frenzy, while others have lost all.
This would not be helpful with the impression since the individuals who made money on cryptos have a wider audience than the millions who didn’t earn any money. Tokens such as BitConnect, which encourage people to spread the word about their platform, merely complicate the situation and exemplify what is wrong with the new landscape.