Following months of warning signs the team of BitConnect has officially announced the halt of their lending and exchange platform. The self-regulated all-in-one bitcoin and crypto community platform BitConnect was created to offer multiple investment opportunities with cryptocurrency education.
BitConnect has informed the members of their community that they are “closing the lending operation immediately with the release of all outstanding loans”.
In the statement is also said that with release of the entire active loan, users’ lending wallets balance will be transferred to their BitConnect wallets balance at the rate $363.62 that has been determined basing on last 15 days average closing price registered on CoinMarketCap.com.
Investors have a possibility to withdraw their BitConnect coin (BCC) currently in QT wallets previously used for staking as well.
Currently, according to the data from CoinMarketCap, the price of the BCC token continues plummeting. At the moment, BCC is trading for just $14,98. It means that it is down app. 2900% from its December 29 value of $437, and given the fact that after shutting down of the lending and exchange platform its native cryptocurrency becomes useless, it’s likely that BCC price will continue to fall.
Nevertheless, the company has explained that the ICO for their BitConnect X trading platform is still functional, and after they create an exchange platform on its web-site, BCC will be listed there.
Very soon, BitConnect lending service and exchange service will be closed while its wallet service, news and educational purposes will be available on the platform’s website.
Among the reasons for shutting down of the platform, its founders name the continuous negative media coverage that has led to loss of members’ confidence in the platform; receiving of Cease and Desist letters, which has become an obstacle for the legal functioning of the platform; several cases of DDoS attacks performed by outside forces, which led to instability of the platform.
For quite a long time, BitConnect has been suspected of being a Ponzi scheme. Crypto experts, including Ethereum founder Vitalik Buterin, have openly spoken up against this platform accusing it of carrying out fraudulent investment operations.
Nevertheless, the team is quite positive about the fate of their platform saying that “this is not the end of BitConnect community” and though they are closing some of their services on the website platform, they promise to “continue offering other cryptocurrency services in the future”.