BitConnect Token Lost 90% On Exchange Close Announcement!
BitConnect, a once promising crypto entity, has lost nearly 90% of its value as the price of the U.S. regulator has plunged to $ 26.00 after it announced the closure of its exchange and lending operations following legal problems.
According to coinmarketcap.com, the market value of the currency has dropped to $ 175,637,617. In the past 24 hours, a total of 17.517 million U.S. dollars in currency transactions.
BitConnect Tuesday announced the immediate closure of its loan business and trading platform within five days. The announcement said the site will continue to be open for wallet services, news and education services.
Regulatory challenge appears
The company gave three reasons for the decision to close: regulatory review, DDoS attacks and poor publicity.
The Texas securities regulator issued a cessation and cessation order alleging that the company was fraudulent about failing to clearly identify the funding sources for its clients and for paying 120% of the interest annually to investors
North Carolina follows Texas order BitConnect to stop soliciting or selling any quoted price for any security in the state. BitConnect said on its Web site that cease and desist orders in Texas and North Carolina have ruined the legal continuation of the platform.
The note accused DDoS attacks from outside forces causing panic and destabilizing the platform. In addition, negative publicity creates a lack of confidence in the platform and social unrest.
Critics heap
Litecoin founder Charlie Lee publicly stated in December last year that he refused to invest in BitConnect, saying it looks like a traditional Ponzi scheme.
A month ago, Vitalik Buterin, founder of Ethereum, said BitConnect's promised return was a Ponzi scheme.
BitConnect We will survive
The statement said the service shutdown does not mean the end of the BitConnect community, and will continue to provide other cryptocurrencies in the future.
BitConnect said it will continue to support its digital token after closing its leased platform and switch, claiming that BitConnect X ICO is still valid. The upcoming trading platform on the Web site will list BitConnect Coin (BCC), its cryptographic currency token.
Starting from February 2017, the price of December 29, 2017 gradually rose to a historic high of $ 437.31 and started to drop rapidly in early January.
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