BitConnect made a lot of people some money very quickly, and then some just lost boatloads. Literally, millions of dollars in value lost in less than 24 hours. Everything came crashing down.
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BitConnect is a coin that was used by users on it's platform to basically lend Bitcoin. The return rates were unbelievable. At one point. If you put in $1,001 you would get back your investment in full in less than 250 days. Then you would just be earning profit.
If you put over $10,001 you could double your money in less than three months. There are all kinds of videos on YouTube explaining how to do it and it was making a lot of money for some people on early. Then the site announced it was not longer going to do the lending and the price plummeted. People were paid out in BCC coins and not Bitcoin, which some were upset about. BCC dropped quick. It was over $300 just a week ago and now is around $25. That is a big drop and it won't be the last one we see like this.
As the crypto market grows and technology advances, we'll see projects fail and succeed. Some will fail quickly and drop from $300 to $25 in a time span where most people can't do anything but sell at a loss. A big loss.
Look how fast that BCC dropped on the 7 day chart from Coinmarketcap.com.
There isn't much you can do. Some projects are going to fail. In-fact, a lot of projects are going to fail. The ones that actually provide a benefit to the world and makes life easier, investing in those could make you a lot of money.
If you are looking at me as a financial advisor, you would be incorrect. I'm just a crypto person like you trying to figure things out. Nobody is really an expert, just do your own research.
But remember that if you invest money into things like BitConnect where people are making ridiculous money, then there is a good chance that it will get shut down or the owners will disappear to their own private island one night. Be aware of what you are investing your money into.
There are some great projects out there, put your money there. Great projects like Steemit.
What are your thoughts on the BitConnect meltdown?
Let me know in the comments below.
Thanks for reading.
