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BCC Token’s price drops as BitConnect officially announces shutdown

Jan 17, 2018 Posted /  3251 Views

BCC Token’s price drops as BitConnect officially announces shutdown

Owing to the recent negative news and legal troubles, BitConnect has officially closed its lending program and exchange platform. Recently, BitConnect was getting warnings from the regulators in Texas and North Carolina which has been cited as one of the reasons behind the closure. The price of BCC (BitConnect Coin) at present has dropped down by 87% and trading at just $30.

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The users have active loans on the platform have been promised a payback of $363.42 for each of the BCC token that was locked into a loan. The payback for one BCC token has been based on the average of the coin price over last 15 days.

Similar to Ponzi scheme

It was talked in the bitcoin and cryptocurrency circle that BitConnect is more like a Ponzi scheme and many leading cryptocurrency celebs had been vocal about it in the media including Ethereum co-founder Vitalik Buterin. The accusations were based on the multi-level referral arrangement and the guarantees of upto40% interest. Not only this currency promised daily bonus of up to 0.25% on each loan. Many times analysts have predicted that the propaganda of risk-free high returns is an indication of the scam.

BitConnect Coin’s website describes the currency as:

“The moment you acquire BitConnect Coin it becomes an interest-bearing asset with 120% returns per year. It is that simple.”

Bitconnect has created a great regret for investors, as the “interest-bearing asset” is now nearly valueless.

Orders from the Texas and North Carolina Securities Division

The shutdown of the exchange was enforced when Texas Securities Commissioner Travis J Iles proposed a decision to serve BitConnect with a cease and desist order in the first week of January 2018. As BitConnect officially belonged to the United Kingdom, the order emerged out futile mostly as it did nothing better than to prohibit the company from dealing straightforwardly with Texan residents.

However, in no time Bitconnect received another cease and desist order from the North Carolina Secretary of State Securities Division.  BitConnect has cited both of these orders as the major reason behind the shutdown, announcing that ‘these actions have become a hindrance for the legal continuation of the platform’

Additionally, BitConnect has also cited DDoS attacks from ‘outside sources’ the ‘continuous bad press’ and ‘lack of confidence’ in community members as the other reasons for its shut down. However, these can be claimed as only desperate efforts to present the fraud in a positive light.

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Tags: BitConnect Coin

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