It has been a terrible week for cryptocurrencies. Almost every major cryptocoin has lost value in double-digit percentages. Well folks, the bad news keeps rolling in.
From a recent post on their website titled "halt of lending and exchange platform" as of earlier today.
Bitconnect placed the blame on three things:
- Bad press
- DDoS attacks
- Cease and desist letters from Texas and NC
To many, the news comes as no surprise. For months the exchange has been marred with accusations of running a Ponzi scheme. Back in November of 2017, Etherium's founder Vitalik Buterin posted a video via a Twitter post where he was deeply critical of the practices behind the operating model of Bitconnect.
Prices of the token have plummeted over 80% - from as high as $200 to as low as $37!
For those unfamiliar with the business practices of Bitconnect, think of crypto-pay-day loans. Investors were promised returns of as high as 40% on a $10,000 investment.
Stay tuned for further developments