The fall of Bitconnect was as certain as the earth revolves around the sun. A Ponzi scheme working only when income cash flow exceeds withdrawals. It was long-run before this moment came and Bitconnect has fallen. It was as crazy as it was harmful. When the leaders shut up shop on Wednesday, making the token to plunge from $290 to $8, that ought to have been the end of the matter. Remarkably though, BCC continues to be actively traded and has even revived some of its value. The reason for the mini-revival is that Bitconnect is starting new ICO – BitconnectX.
BitconnectX website has been allowing contributions since January 10. When Bitconnect closed its doors in a week, after its original website was offline for several days, it was assumed that BitconnectX would follow it.
After all, no one would be naive enough to get fooled twice, surely. Apparently so. Not only is the Bitconnect ICO going ahead as planned, but investors are actively throwing money at it.
When Bitconnect declared that it was closing its lending service on Wednesday, $1.5 billion worth of value was wiped off its market cap within first two hours. Those losses weren’t borne by the company though – it was average investors who were left out of pocket. Bitconnect’s execs were doing just fine, sitting on the stash of bitcoin they’d collected from their investors in the months prior. But then, as Twitter traders keenly watched to see the first altcoin drop to zero in real time, something strange happened. BCC stopped falling and started to climb.
The main reason for this is Bitconnect tokens can be used to buy their new tokens – BCCX. Price per one BCCX is around $50. To reiterate then: Bitconnect duped thousands of investors, selling them BCC coins at up to $290 apiece. It then broke the market and is now promoting the same investors to exchange their BCC for BCCX at a ratio of 2:1 in an event that ought to be called The Halving.