Bitconnect Ponzi Scheme - No Sympathy From Crypto Community
There’s been little sympathy from the cryptocurrency community after the closure of controversial exchange and lending platform Bitconnect.
What looked too good to be true ended up being just that, as Bitconnect has all but closed its doors.
Long accused of being a Ponzi-scheme, Bitconnect shut down its cryptocurrency exchange and lending service this week. As stated on their website, Bitconnect had received cease and desist letters from two American securities regulators - leading to the closure of their lending and exchange platforms. Still, Bitconnect will continue to run its website and wallet service.
Sketchy ‘Ponzi’ offerings
Since its inception in January 2017, many were skeptical about Bitconnect services. In essence, one needed to send Bitconnect Bitcoin in exchange for Bitconnect Coin (BCC) on their exchange.
Once you had BCC, you were guaranteed “up to 120 percent return per year.” Users were told they were earning interest by holding their coin “for helping maintain the security of the network.”
Bitconnect’s lending platform is what really led to