Ponzi Scheme BitConnect Plummets 90%

For naive investors who invested in BitConnect (BCC), today marks an exponentially bigger loss than the general cryptocurrency downtrend. After discontinuing its “lending” program, BCC instantly plummeted over 90% from the day’s high, dropping from over US$330 to a low of just under $20.

While most of the community warned regarding the blatant scam given by BitConnect’s loaning program, the ponzi still rose to a prime market cap of virtually US$3 billion. With the loaning program, people may deposit USD or Bitcoin onto their BitConnect accounts, wherever they'd then stake their holdings for daily interest for a planned amount of your time. The more cash the user locks up within the loan, the upper the daily returns and shorter amount within which their cash is frozen for.

Just hours agone, BitConnect proclaimed they the would be closing all loans and discontinuing their loaning program, effectively instantly. Users with existing loans would have BitConnect attributable to their account adequate to the loan price, employing a set price of US$363.62 per BCC in compensation. The BitConnect coins, currently trifling, were instantly transferred to different exchanges and drop instantly by the duped investors.

While investors technically failed to lose their funds, the exchange of their Bitcoin ANd bucks for the currently useless BCC represents an primarily equal fate. whereas the coin has recovered from the initial low of beneath US$20 to a current value of slightly below $40, investors and lenders have still witnessed a colossal majority of their investments vanish in a moment. in line with the BitConnect company, they selected to shut the disposition platform once large dangerous press, in conjunction with receiving Cease-and-Desist notices from the states of Texas and North geographical area.

Due to the character of cryptocurrency, it's extremely unlikely that duped investors can receive any form of compensation. Since the announcement, BitConnect has born from the highest thirty on Coinmarketcap to well below the highest a hundred. this is often AN unfortunate event for the overarching crypto community, as well, as these new investors can probably not come back to the cryptocurrency scene once seeing most of their investments purloined.