Defunct cryptocurrency project Bitconnect has announced its return, this time as Bitconnect 2.0. A message which was dropped on Bitconnect 2.0 Twitter handle says it will be launching on July 1st in 2019. This is the first time the cryptocurrency is coming on since January 2018.
Bitconnect which also had a lending platform and cryptocurrency exchange closed down in January 2018. The cryptocurrency Bitconnect Coin (BCC) was considered a Ponzi scheme by most members of the cryptocurrency community, including Vitalik Buterin, the Founder of Ethereum
The suspicion was triggered by Bitconnect’s promise of a 120% annual interest for any amount of BCC acquired. This was described as very much scam-like as the company promised a risk-free return as typical high yield investment platforms promise.
BCC later crashed 87% in 2018 to trade at $30 from its initial $437 and the lending platform and exchange were officially closed. The closure came following a cease-and-desist warning from the Texas State Securities Board and North Carolina Secretary of State Securities Division for illegally selling securities and suffering a DDoS attack.
Bitconnect came into existence in 2016 to offer loans to lenders for interest. The lending platform exchanged BCC for Bitcoin which lenders were asked lock the amount for a period for a daily calculated interest rate of $0.25%. Interest payouts were determined by a controversial trading bot. A description of the process goes thus on the company’s website.
“You can invest BitConnect coin in Bitconnect lending platform exclusively from the BitConnect Dashboard. This investment option involves profiting from Bitconnect trading bot and volatility software. You will receive daily profit based on your investment option. Upon investment term completion, you will receive your CAPITAL BACK to take out from the Bitconnect lending platform or optionally reinvest back in lending platform to continue receiving daily profit.”
It is unclear what the aim of Bitconnect 2.0 is and the website does not contain any information pertaining to that. The cryptocurrency community though has responded the Twitter post with a negative reaction, some saying the project is back for another scam and no one should fall for it again.