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 the time of this article, BCC is trading for just $17. 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.
Clear warning to sway away from coins which you see that are over promoted, pumped or seem way too good to be true. In this case, it clearly was and they preyed on human greed to get the best of everyone. Let the coins technology and team speak for itself. If you see some shady things taking place, back off and take warning.
We can only hope in this case that these criminals wind up in jail. We all know that with so many people losing money, many will make it their mission to see that through.