BitConnect: the coin that promised guaranteed returns
Launched in Feb 2016, BitConnect sold a simple dream: buy its BCC token, lend it to the platform, and a secret "trading bot" pays you daily profits. Referral links did the marketing.
By late Dec 2017, BCC hit an all-time high of about $463, and the US DOJ says the project peaked at a $3.4B market cap.
Then regulators showed up. Texas issued an emergency cease-and-desist on Jan 4, 2018, and North Carolina followed on Jan 9. On Jan 16, BitConnect shut its lending program overnight. BCC fell more than 90% within a day, and users who had deposited bitcoin were paid back in the collapsing coin.
In Feb 2022, a US grand jury indicted founder Satish Kumbhani over an alleged $2.4B Ponzi scheme.
The lesson: when the yield is "guaranteed" and the pitch is mostly referrals, someone is the exit liquidity. Make sure it isn't you.
$BTC
#CryptoHistory #BitConnect #CryptoScams #CryptoLessons
NFA
Launched in Feb 2016, BitConnect sold a simple dream: buy its BCC token, lend it to the platform, and a secret "trading bot" pays you daily profits. Referral links did the marketing.
By late Dec 2017, BCC hit an all-time high of about $463, and the US DOJ says the project peaked at a $3.4B market cap.
Then regulators showed up. Texas issued an emergency cease-and-desist on Jan 4, 2018, and North Carolina followed on Jan 9. On Jan 16, BitConnect shut its lending program overnight. BCC fell more than 90% within a day, and users who had deposited bitcoin were paid back in the collapsing coin.
In Feb 2022, a US grand jury indicted founder Satish Kumbhani over an alleged $2.4B Ponzi scheme.
The lesson: when the yield is "guaranteed" and the pitch is mostly referrals, someone is the exit liquidity. Make sure it isn't you.
$BTC
#CryptoHistory #BitConnect #CryptoScams #CryptoLessons
NFA
