BitConnect closes its exchange platform after regulators’ warnings
The big media outlets report that the BitConnect exchange decided to stop its operations after regulatory warnings from Texas and North Carolina. But there are other reasons which might have contributed to this turn of events as well.
At the end of the previous year, BitConnect has been questioned by a vast number of notable people. Vitalik Buterin, creator of Ethereum, Charlie Lee, Litecoin founder, Mike Novogratz, who at that time was famous for his optimistic prognoses regarding the price of Bitcoin and now wants to create his own big Bitcoin bank - all these people pointed out the intransparency of BitConnect and called it a Ponzi scheme.
Furthermore, the world regulators were already dissatisfied with this platform. The British Companies House has already issued a warning on possible closure of BitConnect, but, apparently, that time the exchange has managed to remain in working condition.
BitCoinnect has been in the 20 leading companies on the market according to Coinmarketcap, but since then, its cryptocurrency has become 131th most capitalized, losing 91% of its price in 24 hours. This might even not be the limit, and now that the exchange is closed, the company can plunge further down, under the 150th place.
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