How much have you invested in Bitconnect?
Has Bitconnect excluded its investors? Pretty much everything points to it. Many thousands of investors who have invested in Bitconnect are likely to have lost a lot of money. Because the service has now been closed.
For some time it has been suspected that Bitconnect is a so-called Ponzi Scheme. The service has already received two declarations of cease and desist. And who is behind the service or how the incredibly great investment software should actually work are unknown.
How did Bitconnect work?
Investors could buy guaranteed interest rates from Bitconnect. They received around 40 percent interest on their investments per month. In addition, there were between 0.1 and 0.25 percent daily interest, depending on how much money you had invested in advance for how long. This should be possible thanks to the ingenious Bitconnects software that invests the money.
Nobody knows who is behind Bitconnect (Image: Bitconnect)
It is very likely that this software never existed. Instead, the service paid out money to investors that it had received from other investors. A classic Ponzi scheme that works as long as more people are investing money than they are paying off. And after Bitcoin and many other cryptocurrencies have been falling drastically for a few weeks, the system has probably reached its breaking point.
What's happening now?
The money is gone. Since no one knows exactly who is actually behind Bitconnect, tracking and refunding will be difficult. Especially since a large part of the value was just a speculative bubble that was destroyed by the fall of Bitcoin anyway or was legally passed on to other people.
Instead, Bitconnect investors received tokens called BCC when the service was closed. These should have a face value of over $ 360. The service wants to buy itself free of all obligations and open systems. The problem is that BCC is neither money nor commodity and is not accepted by anyone but Bitconnect. The price has therefore fallen by over 80 percent within hours. Finally, Bitconnect no longer exchanges the BCC for Bitcoin.
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