BitConnect Plunges: Market takes a Dive

BitConnect Plunges: Market takes a Dive

Bitcoin, Bitconnect

Bitconnect (BCC) has announced that it is shutting down its all-in-one crypto exchanging and lending platform.

They have let the public know that its users can log in, but the exchanging platform will shut down in 5 days and the lending service will shut down, according to the update on their website.

“In short, we are closing lending service and exchange service while website will operate for wallet service, news and educational purposes,” -Bitconnect

Leading up to the drop Bitconnect had been hit with a back-to-back of cease-and-desist letters this month, saying that they never registered to deal or sell securities. This first one arrived January 9th from regulators from the North Carolina Securities Division.

According to the letter, Bitconnect was planning to sell unregistered securities during their initial coin offering (ICO), January 10th:

“The Temporary Order to Cease and Desist found that BitConnect was not registered as a dealer or salesman of securities in North Carolina and offered investments called the BitConnect Lending Program and the BitConnect Staking Program. The Temporary Order to Cease and Desist also found that BitConnect had omitted to disclose material facts when offering these investments in North Carolina.”

The company had blamed the slowing down of the website on a series of dedicated denial-of-service attacks; failing to deny the continuation of the ICO, according to their Twitter account.

As soon as the news had dropped that they will be closing their platform the price of their coin BCC had dropped 88.57% on the day down to below $30, according to coinmarketcap.

This company had been dubbed by many as a ponzi, pyramid scheme, and even criticized by bigger players in the crypto space like Ethereum founder, Vitalik Buterin, months before this event. Although it had much support from many YouTubers who had been early and had referred many to the company.

Author – Afolabi Thomas

*Disclaimer: This article is created to educate readers and not tell them where to invest their money. The editorial team and contributors are not liable for any gains or losses of income due to your investment choice.

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