In what may go down as the least surprising news of 2018, Bitconnect is shutting their doors. This system has long been called a Ponzi scheme, though people continued to buy into their promises of easy profit for years.
In the announcement, the company said, “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” (Yes, that is the poorly written announcement)
They will continue to operate as a wallet service, news source, and educational site they say, though it is hard to imagine many people will want to use this system after this.
Their coin, BCC, has so far dropped from about $425 down to $31.80 as of this writing, and will likely continue to plummet since there is very little reason for anyone to want to hold this coin at this point.
While this is unfortunate for anyone holding BCC or using the Bitconnect system, it really was inevitable, and hopefully those involved knew the risks. In the crypto-industry, there are many ‘too good to be true’ ‘opportunities’ out there, and as we are learning, they almost always fail. This is why we here at Decryptofied continue to recommend all investors do their own research and only invest in coins that have value and potential unless you are simply attempting to day trade.