I wrote about bitconnect yesterday and the possibility that they were planning an exit scam. Unfortunately, this proved to be true today. And in typical scumbag fashion, they closed their doors with a proverbial sorry for your luck, as they quietly disappear with hundreds of millions of dollars in bitcoin. There is no further information regarding the status of their recently introduced ICO at this time that I am aware of.
Now to be clear, the reason I am classifying what happened as an “exit scam” is the situation could have been handled differently. Bitconnect announced that they would return capital investments to lenders before closing shop, and cited reasons such as state lawmakers in the United States and continuous d-dos attacks, as the reason for shutting down their lending platform. Returning capital investment to lenders is extremely misleading on their part, they would have you believe that this is them honoring a commitment to their loyal supporters. Unfortunately, this could not be further from the truth. The value of bitconnect coin is tied directly to the demand that is created by their lending platform, so it's not rocket science to understand that without the lending platform, the price of the coin will plummet and most likely go to zero with no demand to warrant buy orders. They chose to return capital investments in bitconnect coin and not bitcoin, and by the time this announcement took place, the price of bitconnect coin had already dropped below $150 and is now at a staggering $42. To add insult to injury, bitconnect decided to take a 15-day average of their coin price from coinmarketcap, and disperse capital investment returns to lenders at a price over $350. And if all of that isn’t bad enough, they wouldn’t allow their users to use the site exchange to convert their bitconnect coin to bitcoin.
Bitconnect could have chosen to take the high road and allow their loyal investors to convert their bitconnect coins to bitcoin using their onsite exchange at a fair market price, and withdraw their bitcoin to a wallet or exchange of their choice. But they did not. I can only hope that those of you who invested in bitconnect, did so long enough ago that you were able to at minimum recoup your initial investment. For those not so fortunate, this is just another reminder of that saying in life that we have all heard hundreds of times, "if it seems to good to be true… it probably is."
Now for those who have been strongly against bitconnect from the beginning, let's try to be respectful and keep the I told you so’s to a minimum. Consider the feeling of being cheated yourself, and hope that like most of us do, mistakes are learned from. Not to mention, its hard to begrudge someone for just doing what the rest of us are doing, and that’s trying to make as much money as possible with this crazy roller coaster ride called cryptocurrency we are all on together.
@OriginalWorks
