Cryptocurrency enthusiasts have been debating about the Bitconnect coin and Bitconnect exchange for the past few weeks. In fact, things have heated up over the last couple of days. You’d be hard-pressed to find a more controversial topic in cryptocurrencies right now. In this week’s cryptocurrency review, we’ll give you an overview of Bitconnect’s theory, supply, token distribution, and more.
Technology / Theory (the Whitepaper)
Bitconnect works by having you exchange Bitcoin for Bitconnect coins (BCC). You use BCC on the Bitconnect exchange, which guarantees an average daily return of 0.1-0.25%. Some days, you may not make any money, but according to Bitconnect, that will even out with days you get a bigger return like 5%.
The exchange works by lending BCC to borrowers, who repay the debt with interest, giving you a daily profit. You’re limited in how much you can lend out by your tier level. To climb the tiers, you’ll need to refer other people to buy BCC with their BTC. There are seven levels for you to earn money through increasing your referrals. And every time your referral lends BCC, you earn commission. This has attracted a lot of people to BCC and the Bitconnect exchange.
Strangely, there is no public whitepaper. However, the open-source code is posted on Github.
The ICO, hosted by Bitconnect, began on November 15th, 2016. It ran until December 31, 2016, and the hard cap was set at 4.8 million BCC, totaling approximately 17% of the whole BCC supply.
Token distribution – When and How
Investors who vested money between November 15th and 25th earned a 40% bonus, an equivalent of 1,400 coins per BTC. Likewise, those investing from November 26th to December 15h enjoyed a 30% bonus. If you got in between December 6th to December 15th, you earned a 20% bonus. Investing between December 16th to December 25th earned you a 10% bonus. And those who jumped on the wagon on or after December 26th did not earn a bonus.
Any coins not sold by December 31st were used for building technology, maintenance, upgrades, marketing, community development, bounties and incentives, and future development.
Originally, the coin was to be listed on Bittrex. However, that deal fell through early in BCC’s ICO, and Bitconnect had to proceed without Bittrex. This may be an alarming bit of information to most traders, since Seattle-based Bittrex is known to have hundreds of altcoins available to trade on its exchange.
Although Bitconnect lists its partners, there is no mention of the team behind the coin and exchange. Obviously, this is disconcerting for an investor doing their due diligence on a prospective investment. It has undoubtedly dissuaded many crypto enthusiasts from considering Bitconnect.
Although there’s been some controversy surrounding Bitconnect coin and exchange, it’s up to you to conduct more in-depth research before investing any of your hard-earned money. With the recent November 4-5 drop in its market cap, BCC is a worrisome investment. And because of Bitconnect’s rules on withdrawing your investment, you won’t be able to get your money back for at least 120 days.
Regardless of all the recent media hype, the world of cryptocurrencies is still very much the wild, wild west. Around any corner, you may find fortune or outlaws waiting to take your loot. As always, we highly recommend you proceed with prudence and do your usual due diligence when considering an investment opportunity.
Looking to learn more about cryptocurrencies? Check out all of our news on cryptocurrency and Blockchain technology. Want to invest, but don’t know which exchange to use? Check out our comparison of the most popular cryptocurrency exchanges. In it, we go over the pros and cons of Coinbase, Gemini, Kraken, and more! Remember to check iReviews often for the latest and greatest in disruptive tech news and reviews.
Sources: Coin Market Cap