BitConnect has been in the news a lot lately for its shady deals and Ponzi schemes. Yesterday, the company announced that they’ll be closing down their lending and exchange platform in 5 days. In a brief letter, the company blames everyone other than themselves. But the main reason they said was because of the cease-and-desist letters from regulators in Texas and North Carolina.
Though the exchange has been shut down, the site will continue to exist for wallet service, news and other educational purposes. The post also blamed “Bad Press” and that members lacked confidence in the platform. BitConnect has been accused of being a Ponzi scheme by several high profile people in the Cryptocurrency industry like Charlie Lee, the Founder of Litecoin and Vitalik Butterin, the founder of Ethereum.
BitConnect claims to profile 1% interest on your investment everyday. 1% interested compounded daily with a $1,000 investment would get you $50 Million in just 3 years. There is no way a service can provide so much money.
BitConnect has shown how gullible people are when it comes to cryptocurrencies. This has given rise to other clones like ETHConnect, XRPConnect and NEOConnect which work similarly. If you need further proof that BitConnect is a Ponzi scheme, check out the following video: