Following the warnings by North Carolina and Texas regulators, BitConnect has closed its cryptocurrency exchange and lending platform. BCC (BitConnect Coin) went down 87% which is a 93% drop from its $437 high in December to trade at $30.
BitConnect was called a Ponzi scheme by many people including the founder of Ethereum.
The company promised up to 40% interest plus a 0.25% bonus on loans following a referral. The promise of high risk-free returns is typical of scams – no wonder BitConnect was called a Ponzi scheme.
BCC’s website talks about the currency saying:
“When you get BitConnect Coin, you have acquired an asset with 120% returns per annum.”
Unfortunately, people who invested in the “interest-bearing golden goose” now own a worthless animal.