Many observers were not shocked by the statement released on the anonymously run website “Bitconnect.” After the recent accusations the company has endured, they’ve decided to finally shut down their operations.
Bitconnect Folds Under Pressure.
Citing “bad press” as one of the reasons for the shut down, Bitconnect has taken their exchange platform offline. This has left many of their holders unable to log on and sell their assets, which have depreciated heavily over the accusations. The company has long been accused of operating a Ponzi scheme, some observers brought these accusations when the company first opened the platform. Pressure on Bitconnect kept mounting as the rumors spread, and once crypto community leaders speculated the same – Bitconnect folded.
But not before their holders saw significant losses as BCC coin plummeted to under 10 dollars. Since the exchange was down, holders were unable to sell.
Bitconnect plans to refund it’s holders at the average price over the last 7 days. Reported numbers for the refund are about $363, which still puts many holders at a loss.
It’s hard to overcome bad press from Vitalik Buterin and once the story hit Bitcoin news back in November, the community responded. With speculation already stirring, it seemed the community wasn’t shocked by the most recent news involving cease and desist orders from Texas and North Carolina.
Bitconnect and speculation about it’s exchange platform
Bitconnect’s platform seemed easy to understand and with a huge multi-level referral system – the scheme grew quickly as folks all over the world tried to recruit their friends to use their referral code.
Bitconnect was a platform that allowed users to loan their cryptocurrency to the company for oversized returns. According to charts and data, you could earn up to 40% returns in a month. You’d think returns like that would be damaging for stability – and raise many a red flag.
Bitconnect’s BCC token has been stable and maintained growth that is similar to bitcoin.
Even though the numbers look good, there were always some serious risks with the platform. The most notable being that most of their tokens were locked up in the exchange – giving the founders a free and clear way to exit with the money.
As the prophecy comes to pass, the world is reminded how quickly a platform can fall. Coinmarketcap has shown zero trade volume on the Bitconnect platform in 60 hours. The notice on their website states that the holders and free to cash out their wallets when they choose to do so.
Releasing the funds immediately doesn’t mean they are a honest company, since many of their holders suffered significant losses.
Will Bitconnect continue to support the BCC token?
According to the notice posted on their website, the cryptocurrency lending platform stated they would not stop supporting the BitConnect coin and instead would allow it to be listed in outside exchanges. This would elminate some of the concerns many industry leaders had with the platform.
If that does hold true, some speculate that the company may need to bow out all together. After values plummeting and multiple DDoS attacks, it would be hard for the company to continue on. Those attacks indicate to some that the deep web marketplaces may have originated the attacks to generate confusion ahead of an exit scam.
What remains clear is that Bitconnect lending is no more, holders are out some serious cash, and the anonymous owners may have gotten away with a large scale cryptocurrency ponzi scheme.
Did you invest in BitConnect? How much did you lose with their downfall? Tell us in the comments.