Bitconnect, long thought to be a ponzi scheme, or at at least very Ponzi-like in operation, has indicated it will be close its exchange and lending platform.
Bitconnect claims bad press and regulatory pressure as the reason for the implosion, both Texas and North Carolina have issued cease and desist letters to the organization, but many believe this would be occurring regardless.
Likewise, it's BCC token has tanked. Again: SHOCKER THERE!
Smells Like a PonziLetters or no letters of cease and desist. This was heading down in flames one way or another. It reeks of GAW Miners, MLM, BitGold, and OneCoin. All probable or proven Ponzi's and Ponzi's always implode.
The concept of the model is to offer high earnings that are simply not sustainable, then use funds from new investors to pay investors before them, so on and so forth.
It never works and always eventually implodes.
In an announcement BitConnect stated:
This is to inform all community members that we are closing the Bitconnect lending and exchange platform. We are closing the lending operation immediately with the release of all outstanding loans. With 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. 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 5 days. In short, we are closing lending service and exchange service while BitConnect.co website will operate for wallet service, news and educational purposesThe go on further to explain the reasons why in detail.
The reason for halt of lending and exchange platform has many reasons as follow:If they want to know why the bad press happens, they need look no further than their own website.
- The continuous bad press has made community members uneasy and created a lack of confidence in the platform.
- We have received two Cease and Desist letters, one from the Texas State Securities Board, and one from the North Carolina Secretary of State Securities Division. These actions have become a hindrance for the legal continuation of the platform.
- Outside forces have performed DDos attacks on platform several times and have made it clear that these will continue. These interruptions in service have made the platform unstable and have created more panic inside the community.
It's not bad press. It's true press.
How on earth it is they plan to promise earnings of 40% per month? Plus an additional 10% to 25% per day?
It's not possible and now conveniently it's never going to be possible either. The biggest shock of all is that so many people were still paying any attention to the platform.
You can read the announcement here and always remember.
If it walks like a duck... it's a fucking duck.
[accordion] [item title="Author and Credits"] Article by dinbits
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