Lemmings running toward the cliff. Get used to this, folks
The BitconnectX ICO has reached its daily maximum sale of 261,333 tokens within minutes for the third day in a row. At $50 a token, that means the less-than-innovative project has raised nearly $39.2 million so far.
Let me say up front here, readers. WTF are these people thinking? The BitconnectX project offers nothing that other, already established projects already have in place. There are already several blockchains offering "lightning fast" transactions, and there are scads of centralized and decentralized exchanges already humming with record-breaking activity.
Plus, there's the $50 per token ICO price. Many people (myself included) invest in ICOs (1) because they believe in the future of the project and (2) because they hope to make a profit once the tokens are traded on the open market. Maybe the BCCX token's price will spike once it's traded, but most ICO tokens do that. There's a big spike, but as people take their quick profits the token price often falls below the ICO price.
I doubt that BCCX will trade above $50 once the smoke clears. BCCX offers nothing new, nothing innovative, unless the developers have some kind of of super secret sauce to make a Scrypt blockchain fly like the wind.
Sadly, though, there are enough True Believers™ in Bitconnect who would trade the crap out of BCCX and keep the price up. I am generously assuming BCCX whales wouldn't try to manipulate the markets to keep the price up, too, but the cynic in me expects they will try.
Nowhere on the ICO website does it detail where the $735 million raised in this ICO will go. To my knowledge, there is no BCCX code posted on Github. There is no whitepaper. There is no information about the devs, about the tech, about the people in charge of this project.
There is no transparency.
It's like someone told investors, "Send me all your money and we'll get back to you after Feb. 23. Bye for now!"
Regardless of your experience with Bitconnect, there are so many red flags about this ICO that I would implore you not to participate. Wait until the ICO ends next month, you can still buy the tokens on the regular markets. That is, if Bitconnect and BitconnectX are still around after Feb. 23.
What would you do with $735 million and no one knew who you were?
[Cross-posted at my blog.]