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:.......
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Absaloutly sponzi now they going to lunch Another one.. stay away
I have been warning people but they never listened
I have been warning people but they never listened