Bitconnect Abruptly Shuts Down, Crypto Currency Collapses; BCC Holders On Suicide Watch

Content originally published at iBankCoin.com

Crypto currency Bitconnect (BCC) plunged from $321 to a tad over $35 today, a drop of more than 86% after regulators from state authorities issued cease and desist letters for unauthorized sale of securities. That's right. Just because your shit is on the blockchain, that doesn't mean you get to solicit your fucking Ponzi scheme to people in America. State regulators will have something to say about that.

Via the company's website, as per the reasons for shutting down.

 

The reason for halt of lending and exchange platform has many reasons as follow: The continuous bad press has made community members uneasy and created a lack of confidence in the platform.

 

We have received two Cease and Desist letters, one from the Texas State Securities Board, and one from the North Carolina Secretary of State Securities Division.

 

These actions have become a hindrance for the legal continuation of the platform. Outside forces have performed DDos attacks on platform several times and have made it clear that these will continue. These interruptions in service have made the platform unstable and have created more panic inside the community.

 

Price action. What did Bitconnect do? They quite literally ran a Ponzi scheme. Look at one of their brochures, promising investors 40% returns, PER MONTH.

 

Via Tech Crunch:

 

Many in the cryptocurrency community have openly accused Bitconnnect of running a Ponzi scheme, including Ethereum founder Vitalik Buterin.

 

The platform was powered by a token called BCC (not to be confused with BCH, or Bitcoin Cash), which is essentially useless now that the trading platform has shut down. In the last The token has plummeted more than 80% to about $37, down from over $200 just a few hours ago.

 

If you aren’t familiar with the platform, Bitconnect was an anonymously-run site where users could loan their cryptocurrency to the company in exchange for outsized returns depending on how long the loan was for. For example, a $10,000 loan for 180 days would purportedly give you ~40% returns each month, with a .20% daily bonus.

 

Bitconnect also had a thriving multi-level referral feature, which also made it somewhat akin to a pyramid scheme with thousands of social media users trying to drive signups using their referral code.

 

The platform said it generated returns for users using Bitconnnect’s trading bot and “volatility trading software”, which usually averaged around 1% per day. Of course profiting from market fluctuations and volatility is a legitimate trading strategy, and one used by many hedge funds and institutional traders.

 

But Bitconnect’s promise (and payment) of outsized and guaranteed returns led many to believe it was a ponzi scheme that was paying out existing loan interest with newly pledged loans. The requirement of having BCC to participate in the lending program led to a natural spike in demand (and price) of BCC.

 

In less than a year the currency went from being worth less than a dollar (with a market cap in the millions) to a all-time high of ~$430.00 with a market cap above $2.6B.

 

Lenders into the Bitconnect Exchange have revealed the company is closing out accounts, issuing BCC in exchange for their dollars -- which is causing the price to plummet.

 

 

Over on Reddit, there is a subreddit dedicated to this Ponzi scheme, which has just gone private -- likely due to an influx of schadenfreude. Suicide watch is in effect. This just about sums it up.

 

And then there's this guy -- popular Youtuber, Trevor James, who rose to fame because of Bitconnect, telling people he's buying Bitconnect now at these prices. He has since taken down that video and is in hiding.

 

 

Comments

Fizzy Head Richard Chesler Wed, 01/17/2018 - 07:24 Permalink

This isnt the end for the anti-bank crypto currency market...this bloodbath wasn't by happenstance either.  

I will agree the ones that gambled money they didnt have are fools and the same sentiment will be hedl by all when the ponzi stawk market collapses at freefall speed on top of itself too.

 

Cryptos will be attacked becuase the money printers cant meddle in your affairs and they cant handle it. Diversity in metals and cryptos is a good thing, but you know that saying? Dont put all your eggs in one basket.

In reply to by Richard Chesler

ultraticum eclectic syncretist Wed, 01/17/2018 - 18:07 Permalink

Queue up all the Statists who want the government to regulate more and promulgate more laws so these poor ignorant sops don't lose their money.

Anybody with 1/2 a brain knew Bitconnect was a scam.  If people are allowed to lose their own money on stupid speculations, they will learn their lesson and not let it happen again. 

See how nice that works?

In reply to by eclectic syncretist

techpriest BlueGreen Wed, 01/17/2018 - 15:56 Permalink

I think many will over time, but too many will wait until too long. I'm living on a fairly small plot of land and learning to grow herbs and vegetables, and it has taken a couple of years just to learn how to build everything out. This involves such things as taking into account sunlight, natural water flows in the property, what grows in what soil, and so on. Imagine if many people needed to know this right away - the transition would be painful.

In reply to by BlueGreen

OverTheHedge techpriest Thu, 01/18/2018 - 01:28 Permalink

I'm 15 years in, and still struggling to get consistent results. If we had to depend on just the land for food, we would be a hungry family. Thank God for olive oil - you can pack a lot of calories into a very small space, and it grows on trees,which is helpful.

I think this is why there is such limited experimentation in subsistence farming: you do what your grandparents did, because they are still alive, so it works. There aren't enough resources to bugger about taking risks, and if your risk doesn't pay off, half your kids may die. Concentrates the thinking, somewhat.

In reply to by techpriest

Boing_Snap Fizzy Head Wed, 01/17/2018 - 08:44 Permalink

The entire crypto market is controlled by the NY Fed and Larry Summers folks, they're involved with a private company called Digital Currency Group (DCG). This company controls the majority of exchanges and miners of crypto, and the lion's share of the actual coins. These markets are cornered and controlled by the same entities that control Wall St. and that game.

DCG controls the future of how cryptos are mined, making it tougher for small miners going forward. They also control the exchanges so they know when to skim the new money coming in and when to goose and crash.

https://www.naturalnews.com/2018-01-16-bitcoin-payments-now-so-slow-and…

Wake up folks you've been conned again, get out of it all now while there's something left of value, and hope you can actually get the cash from the Ponzi exchanges.

http://dcg.co/who-we-are/

Look at Hutchins and Summers.

More info on the con, http://bitraped.com/

In reply to by Fizzy Head

disagreeableness Fizzy Head Wed, 01/17/2018 - 08:54 Permalink

Sooo, you kept and traded your decentralized crypto on a centralized exchange, and then poof! You lost everything. Dumbasses. Ya the whole market got aired out. I took some serious hits, but nobody is going to shut down the exchange and refund me in garbage. It's a great time to buy, and I have been. Trade ONLY on a decentralized exchange. 100% secure, 100% unhackable. I use bitshares DEX (openledger.io). Sorry for you poor fucks. 

In reply to by Fizzy Head

el buitre Fizzy Head Wed, 01/17/2018 - 09:31 Permalink

As long as central banks can print "money" from nothing and we muppets accept these pieces of paper or electrons as having real value, they can (and are) rigging any and all markets.  The fact that most cryptos are decentralized means nothing.  The Cabal simply can buy up a significant percentage of the outstanding coins and then control its direction of exchange into fiat.  Even a PM standard won't do the job.  We need the outlawing of fractional reserve, i.e. the right of the 0.001% to "legally" counterfeit money.  Many of the crypto exchanges are running as banks with a fractional reserve system which was the basis of the Mr. Gox theft and collapse.  What is so hard to understand.

In reply to by Fizzy Head

MK ULTRA Alpha Fizzy Head Wed, 01/17/2018 - 19:49 Permalink

Bitch coin is DOA. It's being taken down all over the world because it was used by foreigners to circumvent nation's currency controls. It's main customers were Asians using the system to get their money out. Now it's being shut down as authorities understand the scam. Even in the US, the authorities want to shut it down because criminal cartels and rogue elements are using it transport capital.

Bitcoin is a money laundering service replacing HSBC bank which replaced the now defunct BCCI bank. Bitcoin also facilitates the wealth transfer of wealthy Chinese into Western currency and offshore banks, protecting them from the Chinese government and western internal revenue services. Gold is too heavy for the wealthy Chinese to more, Bitcoin was the answer.

Bitchcoin is DOA. Suicides worldwide won't change the end of Bitcoin.

In reply to by Fizzy Head

jin187 Fizzy Head Thu, 01/18/2018 - 02:17 Permalink

I'm all for dumping all your money into something you believe in.  If you want to put your life savings into a business, or have come to the conclusion that an investment is going to make you rich through your own research and vetting, then go for it.  Simply handing all your money to some guy you heard about online, that claims he'll make you rich with no work on your part?  LOL.

The people that ruined their families' lives should kill themselves for the insurance money.  A sure bet.  Although no doubt many of them won't read the fine print, and will kill themselves before they've had the insurance long enough that suicide pays out.

In reply to by Fizzy Head