Bitconnect, one of the most notorious and widespread pyramid schemes in crypto history, crashed two years ago today.
BitConnect Scheme Unraveled as Bitcoin Moved Away from Peak Prices
The crypto lending scheme, known for its mass-audience meetings and pervasive messages, promised huge rates of return, depending on always-booming BTC prices. At its peak, BitConnect (BCC) token reached prices close to $600.
Magical words that the history gives us.#BitConnect Ponzi scheme.
Thanks to these kind of scams, #crypto has a bad fame for some (ignorant) people. https://t.co/Mh0HxiqyQ5
— The Copilot | Crypto (@CopilotThe) January 16, 2020
But in just one day, BCC sank to below a dollar and was soon delisted from all exchanges after announcing it was closing due to multiple cease and desist notices.. BitConnect was the first so-called crypto lending scheme, which took in BTC and paid out enormous interest rates in dollars.
Bitconnect’s trick was that customers had to convert their BTC to BCC on the website. Because BCC only traded on the…