BitConnect (BCC), a cryptocurrency that has been swirling with controversy in recent months, is having one of the best growth days – when it comes to the top-20 most valuable coins on the market. In the past 24 hours alone, this digital currency has soared 88.8 percent higher and is now sitting comfortably at $421.25.
At the time of writing this particular cryptocurrency has joined big-name coins like Litecoin (LTC) and Ripple (XRP) in the 20 most valuable list – a place where it’s been before. BitConnect (BCC) actually reached its peak price of about $478 on December 17, but quickly tumbled down to around $220 in the span of just one week.
At the time of writing, this crypto-coin as a whole is worth about $2.5 billion, which is more than Stratis (STRAT) and OmiseGo (OMG).
Today’s bump back above the $400 mark is a welcome piece of news for anyone who purchased BitConnect recently – especially anyone who bought in right before the mini-crash earlier this month.
If you’re already an investor in this cryptocurrency, you may have heard some rumblings about its trustworthiness – which has been publicly called into question on a number of occasions.
What’s the Deal with BitConnect?
This particular cryptocurrency has been called a scam – and a Ponzi scheme – by a number of media outlets. While the coin works and functions in a pretty standard way (store of value, fast transactions, no middlemen, etc.), it is actually a lending program.
BitConnect essentially asks its users to “loan” money to them, which is then locked away and untouchable – kept within the organization’s systems for an amount of time that is decided upfront.
At that point, a trading “bot” somehow makes each investor 1 percent returns daily – which a lot of people imagine can’t be possible. What makes it like a Ponzi scheme is the fact that there are huge financial incentives to recruit new users.
This cryptocurrency is exploding in value, but be careful – if you are considering investing you should always do your due diligence and find out as much as you can about each crypto-coin before you risk your investment.
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.