Bitconnect announced that it is closing its lending and exchange platform. The company has been accused of operating a Ponzi scheme and recently received cease and desist notices in two of the US states. Right after the firm declared its intention the BBC coin dropped under $10 from $290 before recovering slightly. This led many of the holders locked out and unable to sell their depreciated assets.
BitConnect is an investment platform of bitcoins that has been undergoing a lot of pressure for months now. Following months of red flags, BitConnect has long been suspected of running a Ponzi scheme. Even leading figures like ethereum founder Vitalik Buterin and Jameson Lopp among others speculated that the exchange is not at all what it claims to be.
It just had been a fortnight ago, that the company was slapped with an emergency cease and desist order in Texas. According to an update posted on BitConnect website, the company officially announced that it was halting its lending and exchange services due to a series of cease and desist notices along with bad press and number of DDoS attacks.
No one knows how exactly the BitConnect as able to make its inventors generous returns. Though the secret behind the high return was never disclosed, it has been considered a pyramid scam by the general consensus. Also, the intelligent trading bots of BitConnect that make the profitable trades and then shares them with the community does not even exist.
On BitConnect website, the official statement reads:
“We are closing the lending operation immediately with the release of all outstanding loans. With the release of your entire active loan in the lending wallet we are transferring all your lending wallet balance to your BitConnect wallet balance at 363.62 USD [sic]. This rate has been calculated based on last 15 days averages of the closing price registered on coinmarketcap.com. You are free to withdraw your BitConnect coin currently in QT wallets that was used for staking as well. We are also closing BCC exchange platform in [five] days. In short, we are closing lending service and exchange service while BitConnect.co website will operate for wallet service, news and educational purposes.”
BitConnect’s BCC token has always maintained a steady growth. But as per Coinmarketcap, in the last 60 hours, there has been zero trade volume on BitConnect platform. On another platform Coinexchange, the BCC trade volume was recorded at $1.26 million and the token dropped down to $8 before recovering to $25.
Do you think it is the end of the BitConnect? Let us know your thought in comments below or write to us at hello@coingape.com.
The presented content may include personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for you personal financial loss.
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