• 140 days Could Crypto Overtake Traditional Investment?
  • 145 days Americans Still Quitting Jobs At Record Pace
  • 147 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 150 days Is The Dollar Too Strong?
  • 150 days Big Tech Disappoints Investors on Earnings Calls
  • 151 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 153 days China Is Quietly Trying To Distance Itself From Russia
  • 153 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 157 days Crypto Investors Won Big In 2021
  • 157 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 158 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 160 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 161 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 164 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 165 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 165 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 167 days Are NFTs About To Take Over Gaming?
  • 168 days Europe’s Economy Is On The Brink As Putin’s War Escalates
  • 171 days What’s Causing Inflation In The United States?
  • 172 days Intel Joins Russian Exodus as Chip Shortage Digs In
Crypto Insider

Crypto Insider

Cryptoinsider.com

Crypto Insider provides high-quality, long-form analytical pieces, investigative journalism, with less emphasis on breaking news. Our mission is to maintain high journalistic standards in the…

Contact Author

  1. Home
  2. Markets
  3. Other

Bitconnect Crashed 90% Amid Market Correction - Team Cashes Out?

Bitconnect ponzi scheme crashes 90% amid market correction – team cashes out?

Screenshot captured on 12:00 AM, 17 January (GMT)

While most major cryptocurrencies have seen a correction of 20-30%, Bitconnect has crashed over 90%, going as low as $19 and falling entirely out of the Top 100 in Coinmarketcap rankings. Pending confirmation, it also appears that the Bitconnect team have begun to execute a classic ponzi scheme exit strategy.

Twitter pundits and financial advisers alike have also been calling the imminent crash of the Bitconnect house of cards for years. It appears the past 48 hour market correction was the gust of wind it took to knock the cards down and for the orchestrated Bitconnect exit scam to become glaringly obvious.

 

 

Bitcoin bull and hedge fund manager Michael Novogratz with similar sentiments

BITCONNECT TEAM CASHES OUT?

Screenshot of Bitconnect notice issued today on January 16th. Exact time unknown.

This appears to be a classic bait and switch – Bitconnect funds are released into individual investor’s wallet balances, but with limited liquidity and no false value proposition to sell the coin on.

BCC at. At the time of publishing, HitBTC was trading BCC at $16.80 down from ~$420 a mere day prior:

Long-time Bitconnect skeptic @bccponzi stated that this is the suspected Bitcoin wallet that the Bitconnect team have been cashing out of: https://www.walletexplorer.com/wallet/00000898df0aab75

As usual, when the house of cards comes crashing down, the people that get hurt are those at the bottom of the pecking order who just didn’t know any better.

Here is an example of the damage and hurt that is caused when due diligence is eschewed for false promises of quick gains and high yield investments:

One fear in the cryptocurrency community is that the BitConnect crash will appear to justify “nocoiner” claims of a Bitcoin or cryptocurrency bubble, failing to differentiate between or intentionally conflating censorship resistant stores of value and ponzi schemes.

Both points above highlight the importance of cryptocurrency education and combating misinformation. 

Only through educating new and old adopters of cryptocurrency can they differentiate between true utility and scams, eventually streamlining the path to sustainable and healthy growth.

UPDATE 2 @ 1:00 AM GMT, 17 Jan: Bitconnect appears to be making a recovery in the HitBTC market. This is likely due to speculators hoping for an unlikely recovery and/or speculators possibly unaware that both the internal BCC exchange and “lending platform” have been shut down.

By Daniel Dalton via Crypto Insider

Back to homepage

Leave a comment

Leave a comment