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. Au moment de la presse, BCC is trading for just $30.
Many in the digital currency community have called Bitconnect a Ponzi scheme, including Ethereum founder Vitalik Buterin, selon 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% par jour, 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.
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La source: Cointelegraph