Anyone with a good head on his shoulders would be well aware by now that BitConnect is, point in fact, a straight up scam. While the project appears to be dead and buried, that may not be entirely the case, now that BCC can be used to buy into yet another ICO opening this year, the BitConnectX. If there is one take away here, after the now infamous BitConnect’s Ponzi Scheme, it would just be logically sound to steer clear of this new ICO project.
Though there are numerous, perfectly legitimate projects, there are also a number of legitimate reasons why the ICO industry has a somewhat shady reputation, owed much to the multiple scams perpetrated in the history of the industry. Granted some projects may potentially lead to viable products, BitConnectX would not likely be one of those as this upcoming ICO is evidently tainted by BitConnect’s most recent scandal, raising a major red flag for most investors.
There are just too many solid reasons to scrutinize the legitimacy of BitConnectX ICO. For one, it does bear the name of BitConnect, which, suffice to say, does not sit very well with a great many investors. Neither will this new open source currency provide any substantial use to the ecosystem. Proof-of-stake currencies like BCCX where holders are guaranteed to earn interest just by merely keeping coins in their wallets is nothing new in this day and age. And akin to how BitConnect was issued in the past, there will be no means to mine BCCX either.
The inability to mine BCCX clearly raises a number of concerns. Firstly, only 14.7m of the 49m coins were issued in its ICO. All other unsold coins will be kept in a reserve fund, which means these coins can be dumped by developers on the market at any given time. Out of the supply available, only around 11.76m will be effectively sold. Anyone who opts to invest in this project will most definitely lose their money. It is that basic.
Safe to say, no exchanges will make the grave mistake of trading BCCX in the future, which also goes for Bitconnect being listed on questionable trading platforms. Though it is not entirely impossible to see a BitConnectX Exchange in the near future to keep up the illusion of continuous operation, it would be in the best interest of potential investors to carefully consider the entailed risks in this new ICO, not to mention BitConnect’s “colorful” history, to say the least.
