Foreword: Previously, Craig Steven Wright (external nicknamed Ao Cong) had a series of "touching porcelain" acts on the Internet, which attracted many people's resentment. In the near future, even to the extent that the BSV was removed from the currency, this caused great controversy. In the past seven days, the price of BSV has also dropped from $72.5 to $54.83, a drop of nearly 30%. According to this trend, will BSV follow the footsteps of Bitconnect (BCC) and return to zero? This article will explore this.
In the Bitcoin scam, the Bitconnect Ponzi scheme is unparalleled. On January 16, 2018, Bitconnect announced the closure of the loan and exchange services, resulting in a sharp drop in prices.
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What is Bitconnect?
Bitconnect was once the top 20 cryptocurrency with a market capitalization of more than $2.6 billion. It was launched in November 2016 and offers a service that allows users to lend Bitcoin to a Bitconnect trading robot for a daily profit. The company has repaid investors up to 40% of its monthly returns, and the rate of return is staggeringly high. Many traditional investors believe that such returns are completely impossible to deliver on a monthly basis. In fact, the more cash you “borrow”, the greater the profit you get and the shorter the payback period.
Bitconnect also offers a 1% daily rate, which means that if you invest $1,000, you will return more than $50 million in three years. At this point, investors should be cautious. Vitalik Buterin is skeptical about Bitconnect's profits, the first to suggest that Bitconnect is a "Ponzi scheme."
The company has adopted a very aggressive marketing strategy that encourages users to sell to their friends to obtain multiple levels of marketing rewards, drawing rewards from the money earned from successful pyramid schemes. In other words, Bitconnect creates a marketing plan where users can get paid by successfully promoting Bitconnect to other users.
However, on January 16, 2018, everything began to collapse – very fast. The Bitconnect team announced that they will close all loan and redemption services. Automatically cancel all valid loans and convert funds into Bitconnect tokens when the time currency price is $363. This is the first domino that causes the BCC to return to zero. Because the team will be worthless after the team shuts down the service, the user quickly purchases bitcoin using BCC tokens. This led to a significant drop in BCC from $255 to $19.28 in a few days. This is by far the biggest scam in the cryptocurrency industry, and many investors have lost a lot of money.
Will BSV follow the footsteps of BCC?
After some big exchanges announced that they would cancel the BSV transaction, the BSV did not feel good. This is because: A few days after the #CraigWrightIsAFraud topic, BSV founder Craig Wright claimed that he would sue the encrypted user @Hodlnaut诽谤. Wright said he would sue anyone who opposed himself as Nakamoto.
The currency security has an important position in the cryptocurrency industry, indicating its position against Wright. If Wright continues to file a lawsuit against Hodlnaut, the BSV will be removed. But Wright did not converge on this. So on Monday, Binance announced the removal of the BSV. This also led to a significant drop in the BSV by nearly 15%. As of the time of the article's release of just 7 days, the price has fallen from $72.50 to $54.83, a drop of 30%.
Will BSV return to zero?
Although not as aggressive as the BCC price declines, if this continues, the BSV may eventually return to zero like the BCC. Encrypted users, especially BSV supporters, will not understand this downturn. Once the project shows concentration, corruption or ignorance, most users will give up the project.
If Craig Wright still doesn't know how to repent, we predict that more exchanges will be released from BVS. If investors have no way to buy BSV, then the price of BSV cannot rise. In addition, the more people worry that the BSV may be removed from all exchanges, the greater the risk of zeroing. If there is continued BVS under the exchange, it is very likely that investors will abandon the ship and sell all BVS tokens at the appropriate time.
Do you think there will be BSVs on other exchanges in the next few weeks? Will BVS return to zero? Please let us know in the comments below!
(Note: The cover image is from the web.)
Source of this article: First class warehouse
Source of the translation: https://first.vip/shareNews?id=1460&uid=50386
Original source: https://www.investinblockchain.com/will-bitcoin-sv-go-down-to-zero-just-like-bitconnect/
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