BitConnect characterized itself as a digital exchange, lending platform and community-driven investment fund that “provide[d] risk-free returns to its users.” The website claimed to have a “Volatility Software” trading bot that guaranteed users up to a 40% return per month in addition to returns from lending operations. The principal of every investment is guaranteed, but the there is a lock-up period of, on average, 220 days. As of this date, there is no information available on the actual methodology behind their trading bots, the team itself or the lending activities of the project. There are no testimonials from users that borrowed money using the platform and the loan application is inaccessible. Although BitConnect is listed as a Large Cap according to WorldCoinIndex, 90% of the volume and price data is self-reported using data from BitConnect’s proprietary exchange. On January 4, 2018, the Texas Securities Commissioner entered an emergency cease-and-desist order to BitConnect to halt its investment programs and five days later the Securities Division of the North Carolina Department of Secretary of State issued a similar order. On January 16, the project announced it would shut down its cryptocurrency exchange and lending operations because of the orders. During this time, it has been reported that several people affiliated from the project began distancing themselves from the project and people who visited the project’s website were informed about an ICO for an offshoot token called “BitConnectX”.