BitConnect Market Crash Analysis

Before starting this article, I would like to give a few words of empathy to all of the investors, small and large alike, for their loss with BitConnect. We all know what the end result was (a market crash of over 80%), but we don’t know the real reasons why.

Here are some potential theories about what led to BitConnect’s market crash. None of this is confirmed, but we’ll explore possible reasons and scenarios for you to build your own picture.

The state of BitConnect pricing at the time of writing.
It all started with the announcement that BitConnect is going to shut down their lending and exchange platforms, a statement that shook investors to the core and caused the value of the tokens to plummet with insane speeds.

By creating their own token BCC, BitConnect successfully pulled off what video game developers have been doing for quite some time now. Devaluation, i.e. exchange of real value for fictional value. Except when looking at the case of BitConnect it was not a question of transferring dollars into “Crystals”, but rather a promising cryptocurrency that people were supposed to use to generate value and revenue for themselves.

Sadly it didn’t work out that way, but we cannot say that investors weren’t warned. Many notable developers have spoken against BitConnect, and they could see this coming months ago. Michael Novogratz, an ex-hedge fund manager commented on twitter: