In a surprising move that will shock few spectators, Bitconnect has declared that it is closing its lending and exchange platform.

The company has widely been accused of operating a Ponzi scheme and was recently shaken by cease and stop notices from two US states. Immediately after the firm affirmed its intention to wind things up, its BCC coin plunged from $290 to under $10 before recovering to some extent. With the exchange shutting down, many holders have been left locked out and incapable of selling their heavily deprecated assets.

In a post on the Bitconnect website, the company said it is going to close down its lending and exchange service due to the clutter of cease and desist notices together with bad image in the media and a string of DDoS attacks. Unfortunately, due to the ongoing DDoS attacks, the blog post can’t be accessed at this time.

Bitconnect’s secret sauce

Bitconnect’s secret sauce that supposedly makes its investors liberal returns has never been unveiled, but the general opinion is that the whole operation is just little more than a pyramid scheme. It is almost certain that Bitconnect’s “intelligent trading bot” which makes lucrative trades and then shares those extras with the community, does not exist.

It is not clear whether the news of Bitconnect’s lending service shutdown signs the end of the company altogether, even though it is tough to imagine it being able to shamble on in any shape or form after closing its main hub.

Bitconnect Token Falls through the Floor

Historically, Bitconnect’s BCC token has been extraordinarily constant, upholding steady growth in a pattern not dissimilar from that of bitcoin.
Now, Coinmarketcap reports zero trade volume on the Bitconnect platform in the last 60 hours, leaving its token still listed at $290 there. On other platforms though, such as Coinexchange, which confirmed 24-hour BCC trade volume of $1.26 million, the token dropped to $8 before recovering to around $25 at the time of publication. CoinCodex in comparison has chosen to send a notice beside BCC warning investors. The CEO Marko Stokelj previously told:

Bitconnect employs a number of doubtful methods in order to operate and promote its business. The business mold summarized by the company is economically untenable with the current level of returns powerless to be validated by any legally known investment system.

Author's Bio: 

Ricky Makan is a venture capitalist and Crypto Enthusiast best known for pioneering the market for Digital Marketing. He is a Co-founder of Unkrypted, a platform which provides the latest news and information that helps understand everything about the ever-evolving world of digital currencies.