May 20, 2019 00:30 UTC
May 24, 2019 at 19:58 UTC
Bitconnect 2.0- Another Scam?
Bitconnect, the defunct cryptocurrency project has announced its return, this time as Bitconnect 2.0. The Twitter handle for the same said that it will be launched on July 1st in 2019.
Bitconnect which also boasted of a lending platform and cryptocurrency exchange closed down in January 2018, while the cryptocurrency Bitconnect Coin (BCC) was deemed a Ponzi scheme by most eminent members of the crypto community.
Bitconnect had made a promise of a 120% annual interest for any amount of BCC acquired, which triggered suspicion. This was decidedly scam-like as the company had promised a risk-free return as typical high yield investment platforms promise.
BCC later crashed 87% in 2018 to trade at $30 from its initial $437 which subsequently led to the closing down of the lending platform and the exchange. This was because they were served a cease-and-desist warning by the Texas State Securities Board and North Carolina Secretary of State Securities Division for illegally selling securities and suffering a DDoS attack.
Bitconnect was launched in 2016 to offer loans to lenders for interest. The lending platform exchanged BCC for Bitcoin, which lenders were asked lock the amount for a period for a daily calculated interest rate of $0.25%. A controversial trading bot determined interest payouts. A description of the process goes thus on the company’s website.
“You can invest BitConnect coin in Bitconnect lending platform exclusively from the BitConnect Dashboard. This investment option involves profiting from Bitconnect trading bot and volatility software. You will receive daily profit based on your investment option. Upon investment term completion, you will receive your CAPITAL BACK to take out from the Bitconnect lending platform or optionally reinvest back in lending platform to continue receiving daily profit.”
The aim of Bitconnect 2.0 has not been revealed and the website also does not provide any information regarding the same. However, this announcement has not received a positive response from the cryptocurrency community with some saying the project is back for another scam, and no one should fall for it again.