RE: Major BitConnect Shock – Is this your last chance to get out?
They were possibly "hacked" but the so called hackers took advantage of an exploit in the site whereby they could get double their BTC and they bought up BCC tokens which initially drove up the price to $150+
The perpetrators then transferred those stolen funds to other websites and DUMPED on the market causing that drastic drop. The lack of buy orders past a certain point is why the price flash crashed.
The website came back online and explained some of what happened and even payed out 4 missed days. If it was an inside job they are pretty smart and they picked up a bunch of cheap BCC tokens after the crash. It is looking like certain users actually exploited the system.
BCC has a bright future if they can prove they are not in fact a Ponzi or pyramid scheme. I think there is a lot more money to be made off of them in the short term.
Website issues PLUS hacked. That's like a double excuse whammy ;)
I'm just curious to understand why you think BCC has a bright future. What is the value proposition of BCC to you? Is it the trading bot or something else?
The way the system works is that their token ALWAYS rises in value over time since you have to buy it when you "invest" and when you cash back out. The influx of new users constantly pushes the price up along with people reinvesting their earnings into their token. If you had simply bought BCC tokens last month and held them you would have made more than 100% return on investment by now, rather than the 30-40% they would have paid you in fiat if you had lent the trading bot those same tokens.
I have heard that they hold 50% of the tokens lent to them (for speculation) and the other half of the money they use to trade BTC and their own token. I honestly don't think they are using any trading bots just some experienced traders with a very large bankroll to play with. Even if they have a bad day trading they use the profits from their BCC markets to pay investors and they do a very small payout around 0.1% or less.
As long as people keep investing and new people are signing up their token will continue to rise sharply. The strength of Bitcoin has also bolstered their price since BCC is traded only for BTC.
"As long as people keep investing and new people are signing up their token will continue to rise sharply."
^That is exactly how ponzi schemes work. The question is what happens when people stop investing and want to take their money out because they are scared (due to say....a website failure/hack or something like just occurred?)
I also don't believe they are using a bot and it is probably just experienced traders, but they are claiming they are "profiting from Bitconnect trading bot and volatility software" on their website. It is a highly dubious claim at best.
I believe you are stuck for up to 299 days (depending on loan amount) so you cannot "Just get out".
If you're holding BCC you can sell. If you're tied up in an "investment option" then good luck to you because I think you'll need it.
There is an interview out there of one of the guys who helps run Bitconnect. He is a little sketch and doesn't want to talk about much.
Hacked?
I for one do not believe it was a glitch in the system. I think someone knew how to exit. . . . and is already out of the door.
IMHO of course.
And the website is not back online. To claim so before testing and knowing that BTC cannot be with drawn is misleading.
Please be careful if you were on the fence and now jump to invest BTC and make a loan.
Wait until certainty.
H. G.