Bitconnect which also had a lending platform and cryptocurrency exchange closed down in January 2018. The cryptocurrency Bitconnect Coin (BCC) was considered a Ponzi scheme by most members of the cryptocurrency community, including Vitalik Buterin, the Founder of Ethereum
The suspicion was triggered by Bitconnect’s promise of a 120% annual interest for any amount of BCC acquired. This was described as very much scam-like as the company promised a risk-free return as typical high yield investment platforms promise.
BCC later crashed 87% in 2018 to trade at $30 from its initial $437 and the lending platform and exchange were officially closed. The closure came following a cease-and-desist warning from the Texas State Securities Board and North Carolina Secretary of State Securities Division for illegally selling securities and suffering a DDoS attack.
Bitconnect came into existence in 2016 to offer loans to lenders for interest. The lending platform exchanged BCC for Bitcoin which lenders were asked lock the amount for a period for a daily calculated interest rate of $0.25%. Interest payouts were determined by a controversial trading bot. A description of the process goes thus on the company’s website.
Last edited by valerie » Mon May 20, 2019 06:26 » edited 1 time in total Reason:link