BitConnect is Shutting Down Its Lending and Exchange Platform After Regulator Warnings
Originally published on: CoinSpeaker
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January 17, 2018
Serious changes are coming to the the BitConnect system: after a difficult period in its history the investment platform is shutting down.
Following months of warning signs the team of BitConnect has officially announced the halt of their lending and exchange platform. The self-regulated all-in-one bitcoin and crypto community platform BitConnect was created to offer multiple investment opportunities with cryptocurrency education.
BitConnect has informed the members of their community that they are “closing the lending operation immediately with the release of all outstanding loans”.
In the statement it is also said that with release of the entire active loan, users’ lending wallets balance will be transferred to their BitConnect wallets balance at the rate $363.62 that has been determined based on last 15 days averages of the closing price registered on CoinMarketCap.com.
Investors have a possibility to withdraw their BitConnect coin (BCC) currently in QT wallets previously used for staking as well.
Currently, according to the data of CoinMarketCap, the price of the BCC token continues plummeting. At the moment, BCC is trading for just $14,98. It means that it is down app. 2900% from its December 29 value of $437 and due to the fact that after shutting down of the lending and exchange platform there is no use in its native cryptocurrency, it’s likely that BCC price will continue falling.
Nevertheless, the company has explained that the ICO for their BitConnect X trading platform is still functional, and after they create an exchange platform on its web-site, BCC will be listed there.
Very soon, BitConnect lending service and exchange service will be closed while its wallet service, news and educational purposes will be available on the platform’s website.
Among the reasons of shutting down of the platform, its founders name the continuous bad press that has led to loss of members’ confidence in the platform; receiving of Cease and Desist letters which has become an obstacle for the legal functioning of the platform; several cases of DDoS attacks performed by outside forces and led to instability of the platform.
For quite a long time, BitConnect has been suspected of being a Ponzi scheme. Crypto experts, including Ethereum founder Vitalik Buterin, have openly spoken up against this platform accusing it of carrying out fraudulent investment operations.
Nevertheless, the team is quite positive about the fate of their platform saying that “this is not the end of BitConnect community” and though they are closing some of their services on the website platform, they promise to “continue offering other cryptocurrency services in the future”.