Bitconnect published a post on its website on January 16 stating that the company is closing the Bitconnect lending and exchange platform. According to the company, BitConnect’s lending service will be shuttered immediately with the release of all outstanding loans, while its exchange platform will be closed in 5 days.
The company provided three main reasons for halt of lending and exchange platform: the continuous bad press that created a lack of confidence in the platform, two Cease and Desist orders from Texas and North Carolina and DDos attacks on platform.
Bitconnect also stated that despite the closing of lending and exchange service the company will continue offering other cryptocurrency services in the future.
In December, Ethereum founder Vitalik Buterin and Litecoin founder Charlie lee, have spoken up against Bitconnect, calling it a Ponzi scheme.
Right after the announcement, the price of BitConnect coin fell from $215 to $21.
At the moment of press, these are the main market parameters of Bitconnect:
- Average Price: $24,03
- Market Cap: $151 368 370
- 24h Volume: $10 674 100