Ethereum founder Vitalik Buterin once delved into the gray areas of the crypto market during a public interview. He specifically mentioned the notorious case of BitConnect, citing it as a textbook example of a scam.

This classic scam from 2017 was essentially a Ponzi scheme. The project team attracted investors by promising unrealistic high returns, but in reality, there were no genuine trading or investment strategies backing these promises. Investors' profits were merely derived from the influx of subsequent funds.

BitConnect's collapse was rapid; once new capital dried up, the entire model collapsed instantly. Many investors lost everything, suffering heavy losses. This case serves as a crucial warning to the entire industry.

Vitalik's perspective points to a reality: while blockchain technology itself is neutral, it has become increasingly easy for malicious actors to use it to package fraudulent activities. Market participants need to stay vigilant, learn to distinguish genuine projects from scams, and not be blinded by promises of high returns. Only with smarter investors can the market become healthier.