To its founders, Bitconnect “is an open source, peer-to-peer, community-driven decentralized cryptocurrency that allow people to store and invest their wealth in a non-government controlled currency, and even earn a substantial interest on investment”. To its critics, Bitconnect is a pyramid scheme that rewards early adopters and leaves stragglers holding their bags. While cynics might argue the same of many cryptocurrencies, evidence is mounting that Bitconnect is guilty of greater malfeasance.
A P2P Ponzi?
Accusations of “scam coin” are tossed about readily in crypto, with even such robust institutions as Dash not immune from the pejoratives. Pre-mining an overly-generous amount of coins and directly scamming investors are two very different matters, however. In recent weeks, cracks have started to appear in the dam holding together Bitconnect which suggest that all is not as it seems.
After launching in 2016, the market cap of Bitconnect’s BCC currency swiftly rose to $2 billion, placing it in the crypto big league. It’s since plummeted to a quarter of its ATH, and, in a widely shared tweet from Vitalik Buterin, the Ethereum chief deployed the word that every enterprise dreads – ponzi…