Comment of the Day, @2xtops:
haha, the irony. pic.twitter.com/F7moWNz3Oc
— Double Tops (@2xtops) January 16, 2018
Bitconnect Collapses Overnight
Bitconnect published a post on its website on January 16 stating that the company is closing the Bitconnect lending and exchange platform. Since then, the market cap has dropped from $9.8 billion to $130 million. According to the company, the BitConnect lending service will be shut immediately with the release of all outstanding loans, while its exchange platform will be closed in 5 days.
Bitconnect has attracted a lot of negative press over the last few months with many people calling it a ponzi scheme. In December, Ethereum founder Vitalik Buterin and Litecoin founder Charlie Lee, have spoken up against Bitconnect, calling it a ponzi scheme.
“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.”
SEC Offers Guidance Amidst The Panic
Is the product legal? Is it subject to regulation, including rules designed to protect investors?
Are the trading markets fair? Can prices on those markets be manipulated? Can I sell when I want to? Are there substantial risks of theft or loss, including from hacking?
Some questions to ask before taking on that cryptocurrency or ICO investment opportunity: https://t.co/9OuA5nuxu3
— SEC_News (@SEC_News) January 16, 2018