The biggest scam of 2018

[HB Wallet]

Bitconnect (BCC), one of most successful cryptocurrency tokens with a $3 Billion market cap, abruptly collapsed in 2018. What is the reason behind?

(You can read the full story at https://www.hb-wallet.com/post/bitconnect-scam)

What is Bitconnect?

Bitconnect (BCC) is a company, an exchange, and a Blockchain-based cryptocurrency. Bitconnect is used to be described as a high-yield investment program. Guaranteed to earn investors up to 1% total return everyday or about 3,780% profit per year, Bitconnect offered an incredibly high interest rate to investors who would "lend" funds in Bitcoin (BTC) to various projects. These funds were converted to BCC. Furthermore, Bitconnect followed a multi-level marketing structure - the more new users you invite, the higher profit you receive.

According to the enticing offer, if you exchange $1,000 in Bitcoin for BCC tokens, it could net your more than $50M within 3 years. The company also claimed that the profit was generated via an investment algorithm that invested in Bitcoin when it was low and sold when it is high.

Nevertheless, investors couldn't withdraw the new amount of Bitconnect tokens before the due time. They could only withdraw their initial investment plus received interest, meaning they would lose most of the tokens.

Launched in February 2016, BCC hit an all-time high of $463 in December 2017 and a market cap of about $2.7 Billion. Bitconnect was also among the world’s top 20 most successful cryptocurrency tokens at that time.

However, the company didn’t provide any details on how the algorithm worked and made predictions as the investment pool kept growing. The practice soon turned into a huge concern, the community started to find the number extremely suspicious.

The matter became worse when multiple Youtube crypto individuals heavily advertised the BCC’s ‘Referral Bonus’ program in order to claim their benefits. Aforementioned, the Bitconnect platform was built to encourage their existing users to recruit new users, by paying the existing users a percentage of their “recruits” sales.

Adding to the fame, a video of speech by Carlos Matos at their Thailand conference had gone viral and became the source of a Bitconnect meme.

At first, the idea of BitConnect might sound like a great plan to make fast profits. However, it was later labeled as a Ponzi Scheme - a deceitful investment operation. Find out more at https://www.hb-wallet.com/post/bitconnect-scam.

[Vektrum]

Sooner or later something was about to happen in the crypto industry. Cases like this teach everyone to be more careful and not to be greedy, because greed begets projects like Bitconnect. Perhaps this example will be a lesson to many of us. Every day scam projects appear, but it depends on the community whether they will be able to raise money and deceive everyone.

[Ss4sukE]

Sooner or later something was about to happen in the crypto industry. Cases like this teach everyone to be more careful and not to be greedy, because greed begets projects like Bitconnect. Perhaps this example will be a lesson to many of us. Every day scam projects appear, but it depends on the community whether they will be able to raise money and deceive everyone.

not because of greed but because someone is not careful before joining the project, most prize hunters are very ambitious with projects that give participants a large amount of gifts and do not think about the risks. Well the point above is one of the warnings for us to be more vigilant before joining any project.

[HB Wallet]

Good things take time. A promise of huge profits without any risks is delusional. Not only in the crypto space but in any business perspective.

[mrvuit]

A friend of mine lost $ 50000 after Bitconnect collapsed.
I think the reason for the collapse is because the new investment is not enough to pay interest for old investors.

[Dewi Aries]

Sooner or later something was about to happen in the crypto industry. Cases like this teach everyone to be more careful and not to be greedy, because greed begets projects like Bitconnect. Perhaps this example will be a lesson to many of us. Every day scam projects appear, but it depends on the community whether they will be able to raise money and deceive everyone.

not because of greed but because someone is not careful before joining the project, most prize hunters are very ambitious with projects that give participants a large amount of gifts and do not think about the risks. Well the point above is one of the warnings for us to be more vigilant before joining any project.

Greedy, not educated, or maybe want instant money, something that make projects like bitconnect will always exist. If people not change their mind if crypto is short way to get a lot of money, maybe an investment site will never open because  they don't have users. Not means about ICO but investment sites like HYIP or maybe Ponzi scheme that will always end with steal a lot of people's money.

[Iyeman]

Sooner or later something was about to happen in the crypto industry. Cases like this teach everyone to be more careful and not to be greedy, because greed begets projects like Bitconnect. Perhaps this example will be a lesson to many of us. Every day scam projects appear, but it depends on the community whether they will be able to raise money and deceive everyone.

The problem is bitconnect is running for a few years before it has turned to be a scam project. It's very well structured by the scammer behind the bitconnect to gained the trust of the investors. I agree people must learn a lot from this case even a project that runs from a few years can turn as a scam project. I thought that the community has been learning from a lot of hacked cases to be more careful with any project.

[Emilyp]

It wasn't just Bitconnect alone in 2018, why the impact of Bitconnect was ft was cos it was a top 100 on CMC there were other lending coins which failed after Bitconnect. It was all for lessons about staying safe in this space lots of money were lost in it.