After months of speculation and negative media surrounding BitConnect possibly being a ponzi scheme, they have announced the shutdown of their platform.
Their main three reasons for closing the platform were:
- The continuous bad press has made community members uneasy and created a lack of confidence in the platform.
- We have received two Cease and Desist letters, one from the Texas State Securities Board, and one from the North Carolina Secretary of State Securities Division. These actions have become a hindrance for the legal continuation of the platform.
- Outside forces have performed DDos attacks on platform several times and have made it clear that these will continue. These interruptions in service have made the platform unstable and have created more panic inside the community.
Immediately following this announcement, BitConnect’s price dropped over 85%, down from a high of $331 to $33.44, losing $1 billion dollars in market cap. BitConnect claims it will continue to offer other services in the future and that their coin will be listed on outside exchanges, but we fail to see any appeal or trust in this coin going forward.
Disclaimer: This article is provided for informational purposes only and should not be taken as investment advice. Please conduct your own independent research before performing any purchase or sale of a cryptocurrency.
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