The Bitconnect exchange recently closed down all its operations. The fall of Bitconnect was well predicted and certain as night follows day. Being a pyramidal scheme wrapped inside a Ponzi-like structure with a side order of WTF, Bitconnect exchange was as crazy as it was calamitous. The only miracle was that the scam lasted for so long. When Bitconnect shut up its operation on Wednesday, causing its token (BitConnect Cash) to fall from $290 to $8, this seems like the end of the matter. However, the token continues to be actively traded, and has even risen a bit in value. The reason for the mini revival in BitConnect Cash? Bitconnect is launching an ICO.
Also read: Bitconnect System Closes Its Lending And Exchange Platform, BCC Token Drops 87 Percent
Bitconnect Exchange New Boss, Same as the Old Boss
It was no secret, prior to its collapse, that Bitconnect was running an ICO. Its Bitconnect X website has been accepting contributions since January 10. When Bitconnect closed its doors a week later, after its original website had been offline for days, it was assumed that Bitconnect X would follow suit. After all, no one would be gullible enough to get fooled twice, surely. Apparently so. Not only is the Bitconnect ICO going ahead as planned, but investors are actively throwing money at it.
When Bitconnect exchange announced that it was closing its lending platform on Wednesday, $1.5 billion worth of value was wiped off its market cap in less than two hours. Those losses weren’t borne by the company though – it was ordinary investors who were left out of pocket. Bitconnect’s executives were doing just fine, sitting on the stash of bitcoin they had pocketed from investors in the prior months. But then, as Twitter traders eagerly watched to see the first altcoin drop to zero in real time, something strange happened. BCC stopped falling and started to climb due to the Ponzi Scheme that just won’t die.
On January 17, BCC was the worst performing cryptocurrency on Coinmarketcap. Incredibly, 24 hours later, it was the best performing coin on the site, up 410 percent in 24 hours to reach $43 a token. This revival will have been of little consolation to investors, who were still heavily in the red. Nevertheless, it showed that against all reason, people were still buying the coin. In the past 24 hours, $18 million of BCC has been traded and a coin that was written off as being utterly worthless is now changing hands for $28.
On Thursday, Bitconnect Cash rose from $8 to a high of $43, the reason for this is BCC can be used to purchase BCCX, the new Bitconnect token that’s being launched via an ICO. Each BCCX is priced at $50. To reiterate then: Bitconnect duped thousands of investors, selling them BCC coins at up to $290 apiece. It then crashed the market, and is now encouraging the same investors to exchange their BCC for BCCX at a ratio of 2:1 in an event that ought to be named “The Halvening.”
Amazingly, many victims, out of desperation, would take them up on this offer. The majority of Bitconnect X’s investors will be the same souls who lost thousands in Bitconnect Exchange. Despite all the warning signs, they’re willing to go for broke and pray that this time they can get out before the pyramid collapses. In the words of Winston Churchill, never was so much owed by so many to so few.
How long do you think Bitconnect X will last? Let us know in the comments section below.