BitConnect bites the dust (sorta)
Well it looks like the haters and naysayers about bitconnect were right... sorta. The lending program of the Bitconnect website has been terminated. It's not a statement about them being a massive ponzi so much as them saying they're seeing some major shit right now.
You can find the press release here
tl;dr on why they stopped
The continuous bad press has made community members uneasy and created a lack of confidence in the platform.
We have received two Cease and Desist letters, one from the Texas State Securities Board, and one from the North Carolina Secretary of State Securities Division. These actions have become a hindrance for the legal continuation of the platform.
Outside forces have performed DDos attacks on platform several times and have made it clear that these will continue. These interruptions in service have made the platform unstable and have created more panic inside the community.
50% correction
They don't mention anything about the 50% correction, but I'm left wondering if they were "holding bags," which is a traders term for hanging onto cryptos that they bought to turn around sell, but then the market dipped. I'm running Profit Trailer (which I like quite a bit even now). Here's my day.
If you were holding some you may not be totally shit out of luck
we are transferring all your lending wallet balance to your BitConnect wallet balance at 363.62 USD. This rate has been calculated based on last 15 days averages of the closing price registered on coinmarketcap.com. You are free to withdraw your BitConnect coin currently in QT wallets that was used for staking as well. We are also closing BCC exchange platform in 5 days.
I had a small test account
I went to check in on my $2k to see what was happening with it.
We'll see. Hopefully you don't have tons of money invested in this baby.
Edit- Made it to the website
Kinda called it a few hours before.
Blaming it on something else than the price of bitcoin going down, Obviously!
Explanation for high upvote
Yeah, I feel bad for people that lost big on this but... geez, I've seen so many people post so many things about how sketchy it was. People really needed to look into it before putting so much money in it.
The blame game begins.
Call me old fashioned but jail time is too good for the perpetrators of this scam.
It's completely incomprehensible to me that Bitconnect still has a market capitalization of nearly $ 400 million. A company without a business and without a serious business concept is valued at 400 million, you have to imagine that. That is one third of the market capitalization of Steem.
Finally, This scam is going down. I feel sorry for those that lost their funds but they were probably warned a dozen times!
2 months ago, I published 2 deep analysis on the topic (the first one went Viral with 7k+ views) trying to warn new investors.
Take a look if you want to understand why it was OBVIOUS it was a Ponzi Scheme.
Take care my CryptoFriends!
I had a about $200 into it nothing to much! I'm happy to see that my Steem account it looking peachy in the wallet!
I think its part of some master plan. Look at their recent ICO, it's an exchange. I think they did this on purpose so you will almost be forced to use their new exchange. Bitconnects reason for stopping lending seems so surreal, two states in America hand them a cease and desist, and Bitconnect shuts down global lending operations, how can you even make that jump.
Paid out in worthless BCC based on weeks old valuation, while they run off with all the btc (well what they didn’t convert into fiat). A well thought out and executed scam. There are going to be some people seriously hurting today!
Your money is basically GONE! Doesn't matter if they give us our Bitconnect coin at $362. No one buys BCC so it's basically $0...
They should give us in BTC!
They're giving you $362 in a USD wallet which you can exchange for BCC at $34 each and then change to btc. At least that's how I interpret it. Still can't get on the site tho.
that is wrong you get Bitconnect token according to your active investment. One token was calculated with around 363$
Yup, this was always a possibility. I invested in it, I told people about it but also said....it's Vegas money. If you are not ok losing it all then don't put it in.
As long as bitcoin was steadily going higher bitconnect would ride....once BTC had a couple sell offs and then something like this it would be trouble.
And so it has come to pass.
Gladly I got enough money out of it to still walk away with a small profit after watching the rest go poof. Cashing out the lending profits as opposed to reinvesting was prudent.
Funny that many told me I was being a Scaredy Cat (pun intended) when I was doing this.
Shame to see so many people get burned on it.
Feel free to check out my post regarding my own experience with Bitconnect here. I was not hit as hard as others but I did treat the platform very cautiously.