BitConnect, for a long time accused of perpetrating a Ponzi scheme, has finally ceased its operations. The company has closed its lending platform and cryptocurrency exchange citing the most recent legal troubles and “bad press”. BitConnect has received cease and desist orders from both Texan and North Carolina officials. Members of the crypto community, including Vitalik Buterin, have expressed their concerns in the company long before the incident.
“In short, we are closing lending service and exchange service while BitConnect.co website will operate for wallet service, news and educational purposes,” says the official statement. Company officials might have other reasons for a suchlike decision.
A multi-level referral system with “guaranteed 40% profitability” and the company’s inability to pay off its debt may very well be the real motivation behind the closure. This information, however, is not yet confirmed. The promise of high risk-free returns is a perfect indication of a scam.
BitConnect Coin (BCC) has lost 91% of its value in under 24 hours and is now traded at around $23, down from all-time high of $496, observed in December 2017. Company officials have nonetheless stated that the ongoing BitConnect X ICO will continue.
With just another huge project losing what was left of its credibility, the future of the cryptocurrency industry remains hazy. The cryptocurrency market has lost over $313 billion over the course of only ten days, contracting 37%.
Source: https://blog.iqoption.com/en/breaking-the-end-of-bitconnect/
“In short, we are closing lending service and exchange service while BitConnect.co website will operate for wallet service, news and educational purposes,” says the official statement. Company officials might have other reasons for a suchlike decision.
A multi-level referral system with “guaranteed 40% profitability” and the company’s inability to pay off its debt may very well be the real motivation behind the closure. This information, however, is not yet confirmed. The promise of high risk-free returns is a perfect indication of a scam.
BitConnect Coin (BCC) has lost 91% of its value in under 24 hours and is now traded at around $23, down from all-time high of $496, observed in December 2017. Company officials have nonetheless stated that the ongoing BitConnect X ICO will continue.
With just another huge project losing what was left of its credibility, the future of the cryptocurrency industry remains hazy. The cryptocurrency market has lost over $313 billion over the course of only ten days, contracting 37%.
Source: https://blog.iqoption.com/en/breaking-the-end-of-bitconnect/
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