Now worth $37.76 and down 92% from it’s All-Time-High of $472.93 on Dec 28, 2017 (just under 3 weeks ago) the collapse of the BitConnect Ponzi scheme has been fast and entirely predictable. I warned about it 5 months ago with my post Major BitConnect Shock – Is this your last chance to get out? and again listed it as one of the major risks to the Crypto market just over a month ago with my post 5 Reasons I Sold My Cryptos
It was an obvious Ponzi Scheme and it was very clear they were riding the coat-tails of Bitcoins success and would be unable to guarantee its ROI once Bitcoin had a decent pullback. This is now unravelling exactly how many of us predicted. While many might say it’s not totally dead yet, I consider a 92% loss from All-Time-High to be “As Good As Dead” and while I acknowledge there may be some attempt by BitConnect to re-invent itself I feel for the bag holders and hope they learnt their lesson for being so naïve. I hope the damage to sentiment across the board is not too severe or long lasting.
BitConnect was in the Top 10 for a while with a Market Cap of $2.9 Billion USD and I have no doubt that the failure of a such a large Crypto is one of the factors affecting the market sentiment so badly right now, but if I am being brutally honest – this had to happen. With so much hot money and dumb money flooding into bad Cryptos of late, a big wake-up call has been needed to take some of the ridiculous froth out of the market.