Bitconnect essentially closes its doors following regulatory troubles, bad publicity.
Bitconnect has formally closed its lending platform and cryptocurrency exchange following warnings from Texas and North Carolina regulators. The Bitconnect Coin (BCC) digital currency is down 87% today and 93% from its December 29 high of $437. At press time, BCC is trading for just $30.
Many in the digital currency community have called Bitconnect a Ponzi scheme, including Ethereum founder Vitalik Buterin, according to TechCrunch. Such accusations were based on the multi-level referral system and the promise of up to 40% earned interest, plus a daily bonus of up to 0.25% per day, on each loan. The promise of risk-free high returns is often typical of a scam – if it sounds too good to be true, it probably is.
Bitconnect Coin’s website describes the currency as:
“The moment you acquire BitConnect Coin it becomes an interest-bearing asset with 120% return per year. It is that simple.”
Unfortunately for investors, that “interest-bearing asset” is now nearly worthless.
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Author: David Dinkins