BitConnect is an open-source Bitcoin and cryptocurrency community developed by an unknown group of programmers, using their own cryptocurrency, BitConnect Coin (BCC). It has described itself as a high-yield investment program, but has been accused by critics as a ponzi scheme because of its multilevel marketing structure.
BitConnect Coin was among the world’s top 20 most successful cryptocurrency tokens until its price plunged 65 percent starting January 3, 2018. Shortly after, on January 16, it announced it would shut down its cryptocurrency exchange and lending operation after regulators from Texas and North Carolina issued a cease and desist order against it. After BCC hit an all-time high of US $463 in December 2017, it declined to US $19.28 on January 16.
BitConnect said it would refund all outstanding loans at a rate of US $363.62 to the Bitconnect Wallet in form of BCC.
The January 2018 collapse of BCC has been described as a trigger for a wider crash in values for Bitcoin and other major cryptocurrencies, such as Ethereum and Litecoin.
After announcing closing of the BCC exchange, the site was advertising an initial coin offering for BitConnect X (BCCX) as an “open source, blockchain based, decentralized cryptocurrency.”
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