Bitconnect (BCC) was/is an allegedly fraudulent Ponzi scheme. It lost investors 100's of millions of dollars last year (2018) and is the subject of an ongoing investigation by just about every legal agency in the U.S.A. and elsewhere around the world.
The scam concept
The sales patter stated that Bitconnect had developed a high frequency Bitcoin trading bot that outperformed human traders. Not a hard thing to do as 90% of traders lose money. (Your money)
The scope of the ongoing investigation has recently expanded to take in other entities that were not part of the original lawsuit.
The weird thing is that the token still has value? This is the power of a delusion. Even though the whole thing was corrupt from the begining.
The delusion is still strong in some people and the token is still accessable peer to peer and some people are still trading with it?
Bitconnect token still trading at $0.67!
It kind of beggars belief that this token which was has no intrinsic value and was used apparently purely for the benefit of the scammers involved still has more value today than steem?
Because Bitconnect has such a small market cap it is easy to manipulate the price with just a few 100 dollars and no doubt this is attractive to the sociopaths who thrive on ripping people off.
Bitconnect token price prediction 2019 -2020
During the alledged exit scam of Bitconnect they [the promoters and sales team] created a new token called Bitconnectx and persuaded people that it would take some time to transfer their BCC to BCCX.
During the weeks that followed. The scammers it appears exited with $millions of Bitcoins deposited by the investors and left the investors with the worthless BCC tokens.
People could not dispose of the Bitconnect tokens and the price plummeted literally over night going from over $400 per token to $0.45 per token. Markets stopped all trading in the tokens and people were left high and dry.
Bitconnect price history
According to this prediction above. Bitconnect will be worth over $3.69 in the future!? Who writes this stuff?
The whole thing stank of a scam but many got suckered in. The case is still subject to a federal enquiry and many of the supposed scammers have been interviewed and are awaiting their fate. Some have had death threats.
A firm of lawyers has set up a class action lawsuit to try to unravel this particular scheme and the case continues.
“The Amended Consolidated Class Action Complaint highlights those actors who participated in the creation of BitConnect and the promoters of BitConnect. The amount of fraud, and the amount of investment loss in such a short period of time is staggering. We hope to move the lawsuit along as fast as possible and hold as many people accountable both in the United States and abroad.”
What's the take away from this?
Always do your own research and if you see red flags act accordingly. What are the red flags?
Anything that ties up your funds for an extended period of time. An investment that you do not understand and an investment that states it uses a trading bot to trade at high velocity. i.e. Faster than a human.
Trading as anyone should know who wants to get into day trading in particular must know that funds must be liquid so that you can move when the market moves.
We see a lot of posts about technical analysis but the truth is they are all worthless even if they are just one second old.
What is the value of a chart from yesterday or even 10 minutes ago when you are trading in Bitcoin? Absolutely Zero.
History has a way of repeating itself but most people do not study history and many have short memories.
I hope you have learned something from this post and that you are now better equiped to deal in this crazy world of trading.