Bitconnect RIP— They are closed

Bye Bye Bitconnect RIP

I told many as friendly advice stay off Bitconnect other good coins do not waste time in Bitconnect and other MLM investment schemes. But then many get confused or sometimes knowingly blinded by the revenue and even fought with me that the profits were legit and the media blitz was blinding but when it wrapped up we see some scenes like below.

What was Bitconnect

BitConnect coin was a so called open source, peer-to-peer, community driven decentralized cryptocurrency that allow people to store and invest their wealth in a non-government controlled currency, and even earn a substantial interest on investment.

BitConnect coin could be bought and sold both online and offline. However, the most popular way is to exchange them on crypto currency sites where you can buy, sell or exchange BitConnect coin for another digital currency or fiat money.

A maximum of 4.8 million BCC (BitConnect Coin) was sold in the ICO, representing approximately 17% of total BCC (28 million BCC). Remaining BitConnect coin were be issued by Pow/PoS block reward.

Bitconnect Coin Specification

  • Coin Algorithm Scrypt (PoW/PoS)
  • Coin Abbreviation : BCC
  • Maximum Coin Supply : 28 Million (Not sure if its true)
  • Coin base maturity : 50 blocks
  • Total PoW block : 262800
  • PoW block reward : 10 BCC
  • Block Spacing : 2mintus
  • Minimum Stake Age : 15 Days
  • Maximum Stake Age : 90 Days

How to know its MLM

Bitconnect coin adopted a variable PoS rate that will be given periodically payout as per following list,

  • 1st 6 months -> 60% (10% per month)
  • 2nd 6 months -> 50% (8% per month)
  • 3rd 6 months -> 40% (7% per month)
  • 4th 6 months -> 30% (5% per month)
  • 5th 6 months -> 20% (3% per month)
  • 6th 6 months -> 10% (1.4 per month and ongoing.)

Bitconnect the MLM all liked till it lasted

In 2017 the 30 day average return is 0.99% per day (seemingly impressive),
Now let us compare this to buying and holding bitcoin return over the same 30 days. Go to your favorite bitcoin price tracking site. I will use https://bitcoinwisdom.com/markets/bitstamp/btcusd. Here are the prices for the start and end dates to compare:
Bitcoin Price Start Date 5/4/2017 : ~$1437/BTC
Bitcoin Price End Date 6/2/2017: ~$2479/BTC
Buy and Hold Return: ($2479-$1437)/($1437)*100%/ 30 Days = 2.42% per day
As you can see the return for buy and hold is about 2.4 times higher than what the Bitconnect lending program returned over that same time period. You can look at past return rates at draw similar comparisons. You may be thinking, “But this is a good hedge if Bitcoin goes down in value”. Remember, the lending program typically does not offer returns when Bitcoin goes down in value. You can speculate that they game the return rate during those down times to smooth it out. In other words they give back some of that profits they are exploiting during the up times just to keep the scheme going.

BitconnectX the exit scam or the round 2 Ponzi Scam?

Its quite clear now that the guys at Bitconnect were aware that time was up for them. Hence they chose another way to make some money and exit and they chose the tried and tested way which many failed public companies and MLM do, launch a new ICO.

And to prop up the interest they also showed fake time lag to show that is huge demand.

And when they knew their time was up they did this which we can call a classic exit scam.

So basically they wrapped up their bag from Bitconnect and now god knows what happens to user funds.

It may so happen that once Bitconnect is gone you may find Bitconnectx in new avatar but as the dirty snake oil Bitconnect was please stay away from Bitconnectx.

The final nail in the coffin

Even when I told fellow investors that this is the end, many did hold to the last thread but hope in futile when US bans such ponzi schemes, people take note and loose their life savings.

As the release clearly states, Bitconnect is based in England and this order does not affect the company directly. However, the regulator does have the authority to ban Bitconnect from dealing with Texas residents. Of course, it is likely to be quite challenging for the company to separate users of Bitconnect tokens in Texas from those in the rest of the world.
While cryptocurrency enthusiasts have been largely focusing on regulation at the national level, Texas’ ruling shows that sub-national regulators can easily affect the regulatory landscape. This adds an extraordinary level of complexity to regulatory compliance. Cryptocurrency users and businesses may find themselves dealing with countless state and provincial regulators, in addition to national authorities, if other jurisdictions follow Texas’ lead.

Official statement from Bitconnect

This is to inform all community members that we are closing the Bitconnect lending and exchange platform. We are closing the lending operation immediately with the release of all outstanding loans. With release of your entire active loan in the lending wallet we are transferring all your lending wallet balance to your BitConnect wallet balance at 363.62 USD. This rate has been calculated based on last 15 days averages of the closing price registered on coinmarketcap.com. You are free to withdraw your BitConnect coin currently in QT wallets that was used for staking as well. We are also closing BCC exchange platform in 5 days. In short, we are closing lending service and exchange service while BitConnect.co website will operate for wallet service, news and educational purposes.
The reason for halt of lending and exchange platform has many reasons as follow:
The continuous bad press has made community members uneasy and created a lack of confidence in the platform.
We have received two Cease and Desist letters, one from the Texas State Securities Board, and one from the North Carolina Secretary of State Securities Division. These actions have become a hindrance for the legal continuation of the platform.
Outside forces have performed DDos attacks on platform several times and have made it clear that these will continue. These interruptions in service have made the platform unstable and have created more panic inside the community.
Closing the lending and exchange platform doesn’t mean that we will stop supporting BitConnect coin. Closing the lending platform will allow Bitconnect to be listed on outside exchanges giving more options for trading.
We will keep working to make BitConnect coin available to merchant websites providing them API access to accept BitConnect Coins on their platforms.
BitConnect X ICO is still functional and we are building an exchange platform on the BitConnect X website. With BitConnect X operating as an exchange platform, BitConnect Coin (BCC) will be listed there.
This is not the end of this community, but we are closing some of the services on the website platform and we will continue offering other cyptocurrency services in the future.
Best Regards,
The Team BitConnect

Final Thoughts

Any investment that is too good to be true and is a MLM scheme in the form of Cryptocurrency please resist the urge to invest, while they have money you can make a good windfall but when they wrap up, you hold bag of crypto sand.

It feels like Best Regards,
Taking The Money And Running…

Disclaimer: This is not investment or trading advice, always do your own independent research.

For more news follow: https://t.me/cryptbytestechnews

If you like the Blog then please help support the publication via https://www.patreon.com/cryptbytestech .Also you can send some eth contributions to 0x8b831616172504b0617eB70F50185F62Ba5F4FD3

If you have a story please join the telegram channels and share with us Joinhttps://t.me/joinchat/E-6WAgzpNx60vo3KzL4lKw.

If you want to explore more on Cryptos visit -> https://cryptoprofile.com