In the Bitcoin fraud domain, nothing caught Bitconnect up the way Ponzi scheme did. Last year, Bitconnect broadcasted the closing of its loaning and exchanging facilities causing a huge drop of price.
Recently, multiple exchanges proclaimed that Bitcoin SV will be black-listed from their network. The announcement was made after a proclamation by the founder of BSV which stated that he will be litigating the crypto user Hodlnaut for slander and insult. Who has been criticizing wright’s claims of being the Satoshi Nakamoto. The threats came in response to wright’s lawsuit against the social media user. Apparently, it seems as if the key players followed through the warning once Binance announced that it will de-list BSV.
Resultantly, BSV crashed in a hostile way causing a drop of nearly fifty percent after the declaration. Presently, the market came down by thirty percent (30%) since last week where the prices fell from seventy-two dollars ($72.50) to mere fifty-four dollars ($54.83).
In the past, Bitconnect was among the top 20 major cryptocurrencies with a market capitalization dollar value of approximately two and a half billion dollars ($2.60 b). The service provider allowed its consumers to offer the Bitcoin owned by them to their Bitconnect swapping bot to have regular revenue. Previously, the firm presented its shareholders to gross up to forty percent monthly. The company also offered a one percent interest rate collected every day.
Vitalik Buterin, co-founder of ethereum had been doubtful about Bitconnect’s assertions about the profit and called Bitconnect ‘Ponzi Scheme’.
Yeah, if 1%/day is what they offer then that's a ponzi.
— vitalik.eth (@VitalikButerin) November 2, 2017
The firm precisely used a hostile promotion approach to encourage its consumers to motivate their networks to be part of the fraud. The consumers were recompensed with a manifold network marketing for all the money they fetch to the grid via a connection.
On the other hand, last year things started rapidly disintegrating. The Bitconnect team detailed that it is planning to close its operations globally. The active finances were declared irrecoverable spontaneously and the assets turned to Bitconnect coins at a cost of three hundred and sixty-three dollars ($363).
This was an initial event followed by multiple dominos causing the company to crash. Consumers swiftly sold their BCC coins back to Bitcoin because the coin was of little worth after the shutting down of the company’s operation.
— DonAlt (@CryptoDonAlt) April 15, 2019
This move dropped BCC bellicosely from the price of two hundred and twenty-five dollars ($255) to just nineteen dollars ($19.28) within a few days. It was a major scam surfacing from the cryptocurrency business its impacts are even experienced today.
Even though the dive of the price drop is not as destructive as that of BCC price drop, if this drop sustained, BSV might turn out the same as BCC. Crypto consumers make up the most intolerant populace in the world. After a development shows emblems of centralism, exploitation or flat lack of knowledge, the users choose to leave the project at once.
However, in case Wright continues a competition in the market, one hopes that the investor might lose access to BSV. In addition, if uncertainty prevails, BSV might b de-listed from all exchanges resulting in an effect similar to BCC’s fate.