Bitconnect Says Goodbye to Bitcoin Lending – Under a dark cloud of scrutiny
Abruptly pulling the plug on their platform today, Bitconnect says goodbye to Bitcoin lending. What makes this sudden exit all the more suspicious is the timing; Bitconnect clients, customers and affiliates were virtually unable to access the Bitconnect website for hours and days at a time. Coupled with this is all of the legal scrutiny they’ve faced in the United Kingdom, Canada and the States of Texas and North Carolina.
Then there’s the fact the price of Bitcoin is seemingly in free fall the same day this announcement came. It’s only natural to find the timing of the Bitconnect platform shutdown nothing less than fascinating.
So the news that Bitconnect says goodbye to Bitcoin lending shouldn’t come as a shock. Some critics were quite vocal….
“I’ve been asked what I think about BitConnect. From the surface, seems like a classic ponzi scheme. I wouldn’t invest in it and wouldn’t recommend anyone else to.” – Charlie Lee, Founder of Litecoin
Vitalik Buterin, co-founder of Ethereum made similar comments on Twitter. While I never looked at Bitconnect to any great extent I must admit to having my doubts at first glance of their video and their 1% promises.
Whether Bitconnect was a solid company with a bullet-proof business plan or just a ponzi scheme we’ll never know as Bitconnect says goodbye to Bitcoin lending.
I see this news as part of a bigger picture of the Bitcoin market maturing as massive price corrections kick in which has seen the price of Bitcoin crater by over 25% in the past 24 hours. As we go to publish, Bitcoin is hovering just over $10,000 and most other cryptocoins have been slammed in similar sentiment.
Theories about this wild swing in pricing range from the upcoming Chinese new year to worries out of South Korea to the rumors that G-20 nations will come together to roll out cryptocoin regulations. What is clear is that every January for the past four years Bitcoin took a massive price hit only to rebound to all new records. Remember; it was just one month ago that Bitcoin was nearly $20,000. Keep cool and make informed decisions with history as your guide.