Bitconnect closes its lending platform, continues to Scam Investors Through BitConnectX ICO

Bitconnect closes its lending platform, continues to Scam Investors Through BitConnectX ICO

By now we are familiar with cryptocurrency, how it boomed in 2017 and how different ICO emerges to take advantage of the hype.

Now Bitconnect announced last Thursday via Twitter that it will shut down its cryptocurrency lending and exchange platform.

Different regulators have warned users that the company tactics for its business resemble a Ponzi Scheme.

And now all outstanding loans have been released and they are being transferred to wallets in Citconnect Coins, which is the companies own cryptocurrency that recently launched its ICO. But many of its users are reporting that they cannot access their funds and the value of BCC continues to drop.

On January 17, BCC was the worst performing cryptocurrency on Coinmarketcap. Incredibly, 24 hours later, it was the best performing coin on the site, up 410% in 24 hours to reach $43 a token. This revival will have been of little consolation to investors, who were still heavily in the red. Nevertheless, it showed that against all reason, people were still buying the coin. In the past 24 hours, $18 million of BCC has been traded and a coin that was written off as being utterly worthless is now changing hands for $28.

The reason for this is BCC can be used to purchase BCCX, the new Bitconnect token that’s being launched via an ICO. Each BCCX is priced at $50. To reiterate then: Bitconnect duped thousands of investors, selling them BCC coins at up to $290 apiece. It then crashed the market and is now encouraging the same investors to exchange their BCC for BCCX at a ratio of 2:1.

The company claims it will maintain its website as wallet service and for news and educational purposes. But critics are calling the closure an "EXIT Scam". BitConnect allowed users to loan cryptocurrency in Bitcoin, but traded on the platform in BCC in exchange for inflated returns.

It also ran a multi-level referral program, a tactic typically used by pyramid schemes.

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