In January of 2018, the infamous Bitconnect came crashing down, going from a market cap of $2.5 billion to just a few million dollars. To date, it is regarded as one of the biggest scams in cryptocurrency history.
Bitconnect is a real blockchain with a real coin which uses proof of stake for its consensus mechanism. What wasn’t real was the absurdly high returns that the platform creators promised. Supposedly, they promised to use an AI trading bot to earn profit and then share that profit with the token holders in interest as high as 1% a day. Initially, some people did actually profit, but only as long as new members were getting into the scheme.
In 2017 the U.K. government gave a notice to Bitconnect requiring it to prove its legitimacy since it was registered in the county under several shell companies. This was followed by the U.S. opening up its own litigation against Bitconnect, culminating in its final shutdown. The leader of the platform Divyesh Darji, was arrested in Delhi and many of its promoters are under investigation. Bitconnect is now a part of crypto history and a source of memes that have spread to wider audiences outside cryptocurrency communities.
Bitconnect Coin Collectors
Over the last year there have been some interesting developments. The Bitconnect blockchain is still operational. It’s not clear who is still using it as it has been removed from every exchange in the industry. The block explorer shows us there are several active wallets on the Bitconnect network which do repeated transactions every few minutes. Sometimes they send money to themselves and sometimes they send to other wallets.
Is this just some automated software that someone forgot to turn off? What’s going on here? Why would anyone continue running the blockchain especially when there aren’t any exchanges where you can sell it? Well, there are at least a few people who have mentioned they would like to buy Bitconnect coin or BCC on reddit as a collectible item. Kind of like an ancient artifact or art collection piece.
Currently the only way to buy the coin is to do a Peer to Peer transaction but obviously, this is risky. Bitconnect is a part of crypto history and some people want a part of that as a novelty. Or maybe there are people still hoping it’s real. Perhaps the fact that the blockchain hasn’t died yet is proof of the resiliency of the technology for better or worse.
The Plot Thickens
The website domain bitconnect.io recently appeared with a count down timer for July 1st which says “Bitconnect 2.0”. A Twitter user of the same name also has been posting about it claiming the interest rates will be the same as the original project. Since it was first posted, there has been a lot of speculation about what is going on. Is it just someone trolling the community? Or is Bitconnect actually coming back? Time will tell…