Scams

Back when I originally wrote this in October 2017, Regalcoin was a BitConnect copycat (i.e. a clone) which was getting lots of attention.

That’s mainly because it promised returns of up to 45% per month, had a lucrative affiliate program which incentivised cryptocurrency YouTubers to shill it, and was promoted as a way to get in on the ground floor with something just like BitConnect (which had seen a massive increase in coin valuation over the course of 2017).

It went from a high of over $70 per coin in October 2017 to just $0.0011 in 2020.

In this post, I outline what Regalcoin was all about and the warning signs which indicated it was a Ponzi scheme – just like BitConnect.

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On the 16th January 2018, the BitConnect scam collapsed.

They announced that they were shutting down their lending and exchange platform on the 21st January 2018. Following this news, BitConnect’s coin value nosedived from a daily open of $255.91 to $19.28 by the end of the day. That’s an 87% drop.

And by the end of the year, BitConnect was no longer available to trade on any cryptocurrency exchange. At the height of BitConnect’s value, it had a market capitalization value of approximately $2.6 billion (over $430 per coin). It was now worthless.

But what was BitConnect? Was it obvious that it was a scam? What led to its collapse?

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