BitConnect Claims Closing Exchange, Currency Rate 95% Down
January 17, 2018
One of the most controversial cryptocurrencies BitConnect (BCC) has dropped by 95% after the managing company announced lending platform and exchange closed.
BitConnect lending service was shut down immediately, the exchange is to keep on functioning for the next five days to come, as the company said on Tuesday.
It also added that the decision was taken due to a number of causes including cease-and-desist orders from the Texas and North Carolina regulatory bodies. They stated the company sells unregistered shares bound to token selling.
The BitConnect team claims these orders to undermine legal platform functioning. In addition, negative reputation made the cryptocurrency community mistrust them.
BitConnect is one of the most ambivalent and controversial currencies with its founders to have been occasionally accused of fraud. Some crypto world representatives including Vitalik Buterin have also called it a Ponzi scheme.
The news could not but affect the BCC rate itself – the currency has taken a free fall and slumped by more than 95%. However the company assures the game is not over yet.