Last week Bitconnect, a popular bitcoin investment platform lost nearly 90% of its value and continues to decline currently. While the price was previously over $400 per coin, currently the price is floundering around the $20 mark after statements saying the exchange is due to be shut down.
Relentless attacks on the exchange and investor sentiment are the main reason for the alleged shutdown and the massive decrease in Bitconnect value. Multiple attacks on the site have prevented investors from removing or exchanging their coins for other currencies. This change in the level of the liquidity of Bitconnect tokens has sparked widespread fear among owners that they may not have a chance to remove their money from the system. These fears have prompted a selling frenzy and, with no owners to buy the newly discounted coins, Bitconnect prices continue to tumble.
While the future of Bitconnect is uncertain, it will likely take a lot more work to convince prospective cryptocurrency investors to place their money in Bitconnect now. I'll will continue to monitor the situation, however, it is my personal opinion that Bitconnect's moment in the sun has passed us.
What do you think is Bitconnect's future? Will it rebound or is this a fatal blow to the bitcoin lending platform?
