Controversial cryptocurrency BitConnect (BCC) is currently trading at $321.64. That’s about a 13% decline compared to its price 30 days ago. During the last month, this coin has taken quite the roller coaster ride – ending up pretty much exactly where it was 4 weeks ago. It has traded in to the high $400s on more than one occasion during this period. But, each time this coin has soared, it quickly retreats under the $300 mark again. Take a look:
It The past seven days have been even worse, with the price of BCC dropping 21%. But, to put things in perspective, this coin was trading under 20 cents a year ago.
Is this coin going to bounce back and head toward $400?
Why is BitConnect (BCC) Such a Scandalous Cryptocurrency?
Cryptocurrency analysts and investors have called out this coin as a scam, and there is some pretty good reason for that. The system is actually designed as a Bitcoin (BTC) lending platform. Users who participate can earn cash – not cryptocurrency – just for lending the company your BitConnect Coins. It guarantees a daily profit based on how many coins you are “lending” to them.
And this lending service promises pretty massive returns. If you put in over $10,000 worth of coins, they guarantee more than 90% per year in interest payments. But that’s not where the shadiness ends.
This system has long been compared to a Ponzi scheme, because those who refer new users get a percentage of the referral’s capital appreciation. If referrals are taken advantage of, then the guaranteed return is almost 130%. That is absolutely unheard of – especially if it’s risk free like this.
BitConnect certainly holds a lot of the attributes of a crypto scam, but this coin is pretty prominent. It has, after all, jumped to be the 27th most valuable coin on the market. It’s already worth nearly $2.0 billion. If this is a scam, there will certainly be a huge mess to clean up afterward.
Do your research.
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.