After being accused of launching a Ponzi scheme on several occasions, the BitConnect development team announced Tuesday that it would close its lending and exchange service within five days. Its token, BCC, lost 92% of its value after the release of this release to claim only $ 19.28.
As a reminder, BCC was worth only $ 0.15 on January 20, 2017, but on December 28, 2017, a BCC token was worth $ 479.30, according to CoinMarketCap.com.
The company's loan service allowed users to lend their cryptocurrencies in exchange for returns depending on the amount they were willing to lend and the repayment term. Of course, users were not able to lend in dollars or convert their dollars directly into BCC tokens. To participate, users had to buy a bitcoin token, then convert their bitcoin to BCC, which could then be loaned. The fact that BCC is the only cryptocurrency that can be lent, and that all interest and repayment principal have been paid in BCC, has naturally helped to increase the value of the BitConnect token.
According to a graph published on the BitConnect loan site, its "volatile software interest" promised returns of up to 40% per month, with loans over $ 1010, and daily interest of 0.1%, 0, 2% or 0, 25% depending on the amount of the loan. For example, a person borrowing $ 10,010 in BCC would earn up to 40% per month of interest due to the volatility of the software, 0.25% per day, and would regain his initial interest contribution after only 120 days.
To boost its business, BitConnect also implemented a multi-level referral bonus program.
But this has only helped to arouse suspicion, are not we saying "too good to be true"? Critics of the platform included experts in cryptocurrency and blockchain technology such as Vitalik Buterin, founder of Ethereum, and Charlie Lee, founder of Litecoin, who said it was a Ponzi scheme whereby the oldest investors are remunerated by the capital invested by new investors). Not to mention the individuals who shouted at the scam.
Also, the carousel stopped. In a blog post titled "Upcoming Changes for the Bitconnect System - Stop the Loan and Exchange Platform", the team surprised several investors by announcing its impending closure.
In its official announcement of termination, BitConnect identifies three distinct reasons.
First, the BitConnect team accused the bad press, which "made community members feel uncomfortable and created a lack of trust in the platform." The team was referring to all those who shouted at the Ponzi Pyramid.
Then, BitConnect had received not one, but two letters of cessation and abstention. The first came from the Texas State Securities Board, and the second from the Secretary of State Division of North Carolina. The team noted that these cease and desist letters constituted a legal barrier that made the operation of the platform a challenge for the future.
Finally, the team reported a series of denial of service (DDoS) attacks on the platform, and suggested that they would likely continue. The interruptions caused by these DDoS attacks have made the platform unstable and created panic and concern within the community.
As a result, BitConnect plans to repay all outstanding loans at a BCC value of $ 363.62, which is the average price of the BCC token over the past 15 days, according to CoinMarketCap.com.
Que gran estafa ponzi, a la hora de invertir debemos ser sabio y tener sentido común, no todo es oro, y mas en este mundo de las criptomonedas,
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