Bitconnect Closes the Platform For Cryptocurrency Exchange

Bitconnect Closes the Platform For Cryptocurrency Exchange

"A financial pyramid" by Vitalik Buterin - the Bitconnect project, which caused a lot of doubts in the crypto community, announced that the platform for loans and exchange of cryptocurrency will be closed.

The reasons for this decision in the official report of the project are:

  1. negative and undermining user confidence in the media;
  2. the decisions of the Securities Commissioner of Texas and the securities market supervisory authority in North Carolina;
  3. several days of DDoS attacks on the platform.
With this message, we inform the whole community that we are closing the platform for loans and the exchange of cryptocurrency. Operations cease immediately with payment of all outstanding loans.

The number of active loans, according to the representatives of the project, will be transferred to users' balances at the rate of $363.62, which is calculated as the average over the last 15 days according to CoinMarketCap.

The exchange platform will stop working after five days, and on the Internet, outlets will be able to continue working with the token through the API.

However, the changes will not affect ICO BitConnect X, that planned to create a new stock exchange platform. The BitConnect.co site will continue to function as a crypto-jar, as well as for the publication of news and educational materials.

Closing the platform for loans and exchanging cryptocurrency does not mean that we stop supporting the BitConnect token. The closing will allow BitConnect to enter the list of external exchanges and will provide more opportunities for trading.

Over the past day, the price of the BitConnect token has fallen from $ 331 to $ 30.79 per token.

By the end of 2017, prominent representatives of the crypto-currency industry decided to publicly blame the project for organizing an investment fraud, the so-called Ponzi scheme.

I've been asked what I think about BitConnect. From the surface, it seems like a classic ponzi scheme. I would not invest in it. I follow this rule of thumb: "If it looks like a duck, walks like a duck, and quacks like a duck, then it's a ponzi." said Charlie Lee, the creator of Litecoin

On the same day, the billionaire and well-known bitcoin investor Mike Novogratz said that BitConnect really looks like a Ponzi scheme, which harms the image of the whole industry.

Information Source: Coindesk