Bitconnect — “Dead” Cryptocurrency

This coin is considered one of the largest frauds in cryptocurrency history. The Bitconnect project was launched in January 2017 and quickly burst into the top ten capitalization assets. At first, the reputable CoinMarketCap service estimated the capitalization of the asset at $ 2 billion, making it one of the most liquid coins. Such a rapid influx of investors was due to the bewitching promises of the organizers. They offered depositors significant bonuses for making deposits in Bitcoins. Only with time did thinking users suspect something was wrong.

There were 2 main reasons for doubt:

• The mechanism for paying bonuses was not clearly explained. There was a mess with interest rates and the exact amount of payments.
• It remained a mystery from where the project takes funds for such generous rewards.

Only at the end of 2017 did investors publicly accuse the organizers of carrying out an investment scam based on the classic “Ponzi scheme”. The essence of this scheme is extremely simple: dividends to the first investors are paid from the funds contributed by subsequent investors. Doesn’t resemble anything? Yes, Bitconnect had the hallmarks of a classic financial pyramid.