How To Buy Bitconnect Tokens __TOP__
Investors exchanged Bitcoin for BitConnect tokens (BCC) through the Bitconnect exchange. Bitconnect guaranteed investors up to forty percent (40%) return per month depending on the amount invested. More money invested equaled a greater return, regardless of market performance or the fluctuating price of underlying cryptocurrencies.
how to buy bitconnect tokens
You see, when investors wanted to participate in the program, they had to essentially exchange their Bitcoin for BitConnect tokens, called BCC, and to cash out, they had to sell their BCC for Bitcoin. When the company crashed, the value of BCC tanked and whatever digital assets investors were given back were worth much less than their previous Bitcoin.
Bitconnect was a platform in which users exchanged Bitcoin/Ether for Bitconnect 'BCC' tokens to reinvest in the company. According to the class action, Bitconnect promised its users in excess of 1% returns daily, regardless of performance (e.g. a $10,000 capital investment would yield almost $300,000 profit in one year).
Bitconnect's promises were met with several cease and desist letters from US state regulators pending investigation, which prompted Bitconnect to abruptly close access to its platform on 16 January. In the major crash that followed, BBC tokens on secondary exchanges fell from a high of $440 to just $4.80 today, with market capitalisation plummeting from nearly $3 billion in mid-January to just $44 million today.
The class action accuses Bitconnect of 'a Ponzi scheme' and 'numerous securities laws violations'. The submission argues that BCC tokens are securities under SEC v Howey, echoing a similar reasoning by the SEC in July 2017.
Institutional investors who made cryptoasset investments in the past year, or those considering such investments, should take note of the multiple class actions filed in the United States regarding certain cryptoassets and their Initial Coin Offerings (ICOs). Throughout 2017, hundreds of new cryptoassets engaged in an ICO process, offering coins or tokens, or some other asset to investors in exchange for, usually, contributions in bitcoin or Ethereum. In a lightly regulated environment, ICOs raised tens of billions of dollars for various cryptoasset projects.
In the wake of these ICOs, throughout last year and into 2018, class actions have been filed alleging that the ICOs, and the coins or tokens they issued, were unregistered offerings of securities subject to U.S. securities laws. Some of these class actions have been settled, some have been dismissed, and others continue. These cases have generally been brought on behalf of all purchasers in the ICO, seeking remedies under Sections 12 and 15 of the U.S. securities laws, which generally cover sales of unregistered securities. Class actions have been brought against cryptoassets such as Tezos (XTZ), CentraTech (CTR), Bitconnect (BCC), ATBCoin (ATB), and Paragon Coin (PRG).
Valuation, liquidity and custody issues, lack of regulatory oversight, and the potential for manipulation all contribute to the inherently risky nature of this growing market. Many aspects of blockchain technology on which cryptocurrencies are based is exceedingly complex and can be fraught with clandestine exploitive opportunities for hackers, whales (the big money players), and those with nefarious intentions looking to benefit from the relative unsophistication of most investors and users. One notable example occurred in 2016 when hackers stole 3.6 million tokens of Ether (at the time valued at approximately US$50 million) by exploiting a vulnerability in the Decentralized Autonomous Organization built by Slock.it that was holding these tokens on behalf of investors. The DAO was intended to provide investors with a democratic say on how the invested funds would be applied, with greater say being given to those who contributed more value to the fund. Unfortunately, hackers exploited an error in the smart contract governing the DAO and absconded with much of the Ether it was holding. This is just one of many examples of how complex technology coupled with the anonymous nature of transactions, lack of regulatory oversight and large pools of capital can be a recipe for disaster when the risks are not properly understood and managed.
In its most basic form, ICOs are a new way to fund tech projects through the use of cryptocurrencies or tokens. By offering a faster, more transparent solution to crowdfunding a project and eliminating the search for an initial Venture Capitalist (VC), there is some serious cash to be made. 041b061a72