Bitconnect officially closed its credit platform and the exchange of crypto-currencies after warnings from regulators in Texas and North Carolina. The digital currency of the BCC fell 89% today and 95% of the high of December 29 at 437 dollars. At the time of printing, BCC trades at only $ 27.
Ponzi scheme
Many people in the digital monetary community called Bitconnect the Ponzi scheme, including the founder of Ethereum Vitalik Buterin. Such charges were based on the fact that the company had a multi-level referral system and promises to earn up to 40% plus a daily bonus of up to 0.25% per day for each loan. The promise of a risk-free high return is typical of fraud - if something sounds too good to be true, perhaps it is.
The Bitconnect Coin site describes the currency as:
"At the moment when you purchase the BitConnect coins, it becomes a percentage asset with a return of 120% per year. It's simple."
Unfortunately, for investors this "interest-bearing asset" is now useless.