Coinmarketcap.com, Bitconnect, taken on Jan 17 2018
Hey guys,
on an eventful day of an unfortunate but hopefully not critical general market correction of cryptocurrencies a very particular story appears to unfold - the subsequent demise of Bitconnect
Having joined the ranks of several people here on Steemit to actively warn people about the illigitimate business practices on several occasions, I am now glad to observe that the Madoff-style investment fund (one might also call it a Ponzi scheme) that is Bitconnect finally seems to have collapsed. Despite the monetary and reputation damage already inflicted by such mechanisms we may at least hope that Bitconnect will not manage to attract any more private funds susceptible to fraudulent extortion by the false promise of safe profit.
Irrespective of the disadvantageous market environment, this price development also has to be associated to recent legat action by the Texas State Security Board proclaiming an 'Emergency Cease and Desist' order against Bitconnect related promotion in the jurisdiction of Texas. This reflects the first serious crackdown by local regulatory authorites against the company, which has so far failed to disclose various details from its exact corporate composition to transparent mechanism of profit generation (because those typically do not exist in Ponzi schemes or are purely virtual and designed to conceal the actual lack of profitability).
I will try to follow the course of events as they unfold but one can only hope that a 92% decline of market price over 24 hours (at the time of writing) represents the market's subsequent acknowledgement of Bitconnects fraudulent business scheme and the final failure of its deceptive marketing mechanisms.
In that spirit, always remain vigilant and critical when investing and have a nice evening