As reported by Core Media, BitConnect, the company behind BitConnect Coin (BCC), a cryptocurrency used in what is widely believed to be a Ponzi scheme, recently shut down its lending and exchange platform.
According to the company, bad press, distributed denial of service (DDoS) attacks, and cease and desist letters from regulators in Texas and North Carolina forced them to shut down the platform. It notably stated its BitConnect X ICO is “still functional.”
At the time, the company gave its users their money back in BCC tokens, valuing each at $363. Shortly after its announcement, the tokens’ value crashed to $30.7. In a new update, the team behind the cryptocurrency justified the price drop, by stating it is a “direct result of releasing all our members’ coins at one time.”
The company then stated that it will do its best to “honor the value of BCC as close to what it has been holding during the past several months.” It added that during the next 10 days, non-U.S. residents will be able to participate in its BitConnect X token sale, the same one mentioned in regulators’ cease and desist letters. The price of BCC will be of $150 during this priod, although at press time one BCC is trading at $40.3, after hitting a $7.5 low.
Justifying the $150 price tag, the company claims it will support existing coin holders and “give them some stability after these recent events”. It then announces a new exchange, the company’s post reads:
“We are launching a new, superior system as an exchange that will support several cryptocurrencies as soon as possible and BCC will be listed immediately. BitConnect Coin are limited in supply to 28 million and there are currently only 9.6 million in circulation. This scarcity of supply should create a market demand, with help and support from the community, once this new exchange begins operation.”
BitConnect promoters split
In light of the BCC crash, most BitConnect promoters started either distancing themselves from the project, or making up excuses. According to a Reddit thread, various YouTubers who promoted the scheme are now deleting videos related to it.
As reported by BehindMLM, various YouTubers made videos on BitConnect’s announcement, but failed to take responsibility. One, Trevon James, launched a livestream titled “you win,” in which he mostly just read comments and responded to them. At one point, he seemingly dares his viewers to sue him:
“You’re gonna sue me? Fuckin’ sue me man. Sue me for what? What are you going to sue me for? What could you possibly sue me for? I want somebody to tell me what you can sue me for.”
Tellingly, in light of the new announcement, Trevon Jams deleted the livestream video. He then published a video titled “come back to this video in 6 months”. In it, he merely shows the new announcement, and himself buying BCC tokens on the HitBTC exchange.
Meanwhile, various Reddit users revealed they’ve lost considerable amounts in the aftermath of BitConnect’s move. One user in particular claims to have invested over $500,000 into the scheme using a business loan and his life savings.