Bad news for Bitconnect: End of the lending program, devaluation of the coin and small partial payout

I wanted to be sure you saw this data asap (I didn’t learn this until very late last night and just got up.) as I promoted Bitconnect in my ebook and therefore feel I should be the one to tell you. Hopefully, you followed the rest of my advice by not investing more than you could afford to lose.

I’m sorry to have to report that for the last 3 or 4 days, the Bitconnect site was closed for maintenance. Then, very, very late last night, Bitconnect announced it was closing the lending program. (Their full statement from their website is below.)

This was obviously a direct result of the collapse in the Bitcoin price. They are returning the loan principal in Bitconnect coins (BCC) valued at

$363.62 each. However, coinmarketcap only shows the coins at $10 and $15 on HitBTC.com and Livecoin.net (exchanges) respectively. I was able to create an account and a BCC wallet on Livecoin.net in a few minutes, but not HitBTC. So, I have transferred my BCC to Livecoin.net.

You can no longer exchange BCC for Bitcoin on the Bitconnect site. However, I was able to withdraw my Bitconnect to the new BCC wallet on Livecoin.net immediately. Since Bitconnect just rebounded slightly from 7 to 10 and 13 to 15, I plan to hold it there and see if it goes any higher by tonight.

Here is the Bitconnect’s full statement:

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This is to inform all community members that we are closing the Bitconnect lending and exchange platform. We are closing the lending operation immediately with the release of all outstanding loans. With release of your entire active loan in the lending wallet we are transferring all your lending wallet balance to your BitConnect wallet balance at 363.62 USD. This rate has been calculated based on last 15 days averages of the closing price registered on coinmarketcap.com. You are free to withdraw your BitConnect coin currently in QT wallets that was used for staking as well. We are also closing BCC exchange platform in 5 days.  In short, we are closing lending service and exchange service while BitConnect.co website will operate for wallet service, news and educational purposes.

The reason for halt of lending and exchange platform has many reasons as follow:

  • The continuous bad press has made community members uneasy and created a lack of confidence in the platform.
  • We have received two Cease and Desist letters, one from the Texas State Securities Board, and one from the North Carolina Secretary of State Securities Division. These actions have become a hindrance for the legal continuation of the platform.
  • Outside forces have performed DDos attacks on platform several times and have made it clear that these will continue. These interruptions in service have made the platform unstable and have created more panic inside the community.

Closing the lending and exchange platform doesn’t mean that we will stop supporting BitConnect coin. Closing the lending platform will allow Bitconnect to be listed on outside exchanges giving more options for trading.

We will keep working to make BitConnect coin available to merchant websites providing them API access to accept BitConnect Coins on their platforms.

BitConnect X ICO is still functional and we are building an exchange platform on the BitConnect X website. With BitConnect X operating as an exchange platform, BitConnect Coin (BCC) will be listed there.

This is not the end of this community, but we are closing some of the services on the website platform and we will continue offering other cyptocurrency services in the future.

Best Regards,

The Team BitConnect

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