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 press time, BCC is trading for just $30.
Ponzi-like
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.
@Sathoshilite tweets this morning :
I've been asked what I think about BitConnect. From the surface, seems like a classic ponzi scheme. I wouldn't invest in it and wouldn't recommend anyone else to. I follow this rule of thumb:.......
...https://twitter.com/SatoshiLite/status/953466381340614656?ref_src=twcamp%5Eshare%7Ctwsrc%5Em5%7Ctwgr
- SatoshiLite
