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Bitconnect Coin
Ticker symbolBCC
Initial release15 February 2016[1]
Source modelOpen source
Circulating supply9,221,673 BCC
Exchange rate1 BCC = $2.34 (11 February 2018)[2]
Market cap$21,587,291 USD[2]

Bitconnect (BCC) is an open-source cryptocurrency which has been described as a high-yield investment program and as a Ponzi scheme[3][4]. Bitconnect experienced a major crash in January 2018 in which the market capitalization (supply multiplied by the unit price) went from $2 billion USD to $130 million USD, a 15-fold decrease.[2]

Publicity[edit | edit source]

The Bitconnect platform was frequently covered by social media personalities Trevon James and CryptoNick.[5] A video of a keynote speech by Carlos Matos at a Bitconnect event has since gone viral and become an Internet meme.[3][6][7]

Criticism and collapse[edit | edit source]

Bitconnect has been suspected of being a Ponzi scheme[8] because of its multilevel marketing structure and for various other reasons.[9][10][11] The Bitconnect Coin was among the world’s top 20 most successful cryptocurrency tokens until its price plunged 65 percent starting January 3, 2018. After BCC hit an all-time high of US $463 in December 2017, it declined to US $5.92 as of January, 30, 2018.[2] Bitconnect has said it will refund all outstanding loans at a rate of US $363.62 to the Bitconnect Wallet in form of BCC.[10][12][13]

Legal issues[edit | edit source]

On January 16, Bitconnect announced it would shut down its cryptocurrency exchange and lending operation after regulators from Texas and North Carolina issued a cease and desist order against it.[14][15][16][17] On January 31, 2018, the U.S. District Court, Western District of Kentucky, granted a temporary restraining order freezing BitConnect's assets and "to disclose cryptocurrency wallet and trading account addresses, as well as the identities of anyone to whom BitConnect has sent digital currencies within the last 90 days."[18]

References[edit | edit source]

  1. finder (2 January 2018). "What is BitConnect (BCC) and how does it work? - finder UK". Archived from the original on 25 January 2018. Retrieved 30 January 2018. 
  2. 2.0 2.1 2.2 2.3 "BitConnect (BCC) price, charts, market cap, and other metrics - CoinMarketCap". Archived from the original on 23 October 2017. Retrieved 30 January 2018. 
  3. 3.0 3.1 Mix (2018-01-17). "How BitConnect pulled the biggest exit scheme in cryptocurrency" (in en-US). The Next Web. Archived from the original on 2018-01-31. 
  4. Wieczner, Jen (January 17, 2018). "Bitcoin Crashes to Below $10,000 as Cryptocurrency Scams Scare Investors". Fortune. Archived from the original on January 27, 2018. Retrieved February 10, 2018. 
  5. Cuthbertson, Anthony (2018-01-17). "Is this "Ponzi scheme scammer" to blame for bitcoin's price crash?" (in en). Newsweek. 
  6. cryptomeme (2018-01-18), BitConnect :New Music Video Carlos from NY- hey hey hey, archived from the original on 2018-02-06, retrieved 2018-01-31 
  7. Placeboing (2018-01-22), BitConnect Remix, archived from the original on 2018-02-06, retrieved 2018-02-06 
  8. Popper, Nathaniel; Bowles, Nellie (2018). "Bitcoin Falls Below $10,000 as Virtual Currency Bubble Deflates" (in en-US). The New York Times. ISSN 0362-4331. Archived from the original on 2018-01-18. 
  9. Williams, Sean. "BitConnect, Alleged Crypto Ponzi Scheme, Shutters Its Lending and Exchange Services and Plunges 92%" (in en). The Motley Fool. Archived from the original on 2018-01-18. 
  10. 10.0 10.1 Tepper, Fitz. "Bitconnect, which has been accused of running a Ponzi scheme, shuts down" (in en). TechCrunch. Archived from the original on 2018-01-18. 
  11. Cheng, Evelyn (2018-01-17). "Digital currency plunge may be healthy for cryptocurrency market". CNBC. Archived from the original on 2018-01-18. 
  12. "Changes coming for the Bitconnect system - Halt of lending and exchange platform". BitConnect. 2018-01-16. Archived from the original on 2018-01-18. 
  13. "Bitconnect Shut Down it's Lending Platform Officially for Good". 2018-01-16. 
  14. McKay, Tom. "BitConnect, Anonymously-Run Crypto Exchange, Crashes After States Issue Cease and Desists" (in en-US). Gizmodo. Archived from the original on 2018-01-17. 
  15. "BitConnect Closes Exchange as States Warn of Unregulated Sales". 2018-01-16. Archived from the original on 2018-01-17. 
  16. Swearingen, Jake. "The Rise and Fall of BitConnect, the Sketchiest Crypto Exchange" (in en). New York Magazine - Select All. 
  17. "Crypto News Update" (in en-us). 2018-01-17. Archived from the original on 2018-01-17. 
  18. De, Nikhilesh. "US Court Freezes BitConnect Assets as Lawsuits Mount". CoinDesk. Archived from the original on 9 February 2018. Retrieved 8 February 2018.