BitConnect’s crypto community may be over.
After months of speculation, hacks and afterwards silence, BitConnect has finally shut down its lending and exchange platform. In an announcement made today, BitConnect said that “In short, we are closing lending service and exchange service while BitConnect.co website will operate for wallet service, news and educational purposes.”
BitConnect’s community spanned worldwide, but particularly large chunks of it come from here, in Southeast Asia, including the Philippines.
The company cited numerous reasons, such as the Denial-of-Service or DDoS attacks on their site, two Cease and Desist letters, one from the Texas State Securities Board and one from the North Carolina Secretary of State Securities Division, and the bad press received by the platform. Prior to this development, the shady Bitcoin investment scheme was mired in a litany of legal troubles, including cease and desist orders from the UK in November.
“We are closing the lending operation immediately with the release of all outstanding loans. With release of your entire active loan in the lending wallet we are transferring all your lending wallet balance to your BitConnect wallet balance at 363.62 USD.”, they wrote. They also plan to close their exchange in 5 days. The price of BitConnect (BCC) shortly after plummeted from 21,500 Php to only 1,500 Php*, a 93% decrease.
This is widely seen as an obvious exit scam, with BitConnect seemingly under numerous red flags similar to ponzi schemes. Their suspected ponzi scheme has been talked about for months as several figures in the space, including the founder of ethereum, Vitalik Buterin, have levied criticisms against it in recent months. In fact, CoinMarketCap removed them from their list of Top 100 coins after complaints were lodged by other crypto communities. With the crash of BCC, most people who invested in the project were left scratching their heads.
Yet despite the cease-and-desist letters, BitConnect said that its in-progress initial coin offering (ICO) will continue, and that it is building an alternative exchange for the BitConnect token.
“This is not the end of this community, but we are closing some of the services on the website platform and we will continue offering other cyptocurrency[sic] services in the future,” the team wrote. The BitConnect team plans to launch their ICO, dubbed BitConnect X, on schedule.
Exchange Rate: 1 USD = 50 Php