In a move that will surprise few observers, Bitconnect has announced that it is closing its lending and exchange platform. The company has widely been accused of operating a Ponzi scheme and was recently rocked by cease and desist notices in two US states. Immediately after the firm declared its intention to wind things up, its BCC coin plummeted from $290 to under $10 before recovering slightly. With the exchange offline, many holders have been left locked out and powerless to sell their heavily deprecated assets.
Bitconnect Bids Bye Bye
Pressure has been mounting on Bitconnect for months, with leading figures within the crypto community, from Vitalik Buterin to Jameson Lopp, speculating that the exchange was not all it was cracked up to be. News.Bitcoin.com reported on these rumors back in November before revealing, less than a fortnight ago, that the company had been slapped with an emergency cease and desist order in Texas. Among many red flags to have set alarm bells ringing were Bitconnect’s extremely odd marketing videos, described by one commenter as being “like scientology merged with hillsong infused with dorks and used car salesmen”.
In an update posted on the Bitconnect website, the company said it was halting its lending and exchange service due to the spate of cease and desist notices coupled with “bad press” and a string of DDoS attacks. Unfortunately, due to the ongoing DDoS attacks, the blog post can’t be accessed at this time. The “bad press” that Bitconnect cites, otherwise known as accurate reporting, has been invaluable in helping guide crypto newcomers away from the platform.
Data Provided by bitcoin.com