Is Bitconnect a scam?

First, Vitalik Buterin (founder of Ethereum) and Litecoin creator Charlie Lee began to publicly call out BitConnect on Twitter, alleging that the company is likely a scam. Around the same time, the U.K. Registrar of Companies threatened to shut down BitConnect and gave it two months to prove its legitimacy.

What is Bitconnect & how does it work?

Essentially, you’re giving BitConnect your Bitcoin and then giving it back the cryptocurrency it gave you in exchange for it. You’re handing over your Bitcoin and your BitConnect Coin in exchange for a promise – a promise that has now been broken that the lending platform has shut down and the value of BitConnect coins has plummeted.

Is Bitconnect a Ponzi scheme?

On Tuesday, BitConnect announced closing its Bitcoin lending and exchange platform, following intense speculation that the crypto community was a Ponzi scheme. In its statement, the company insisted this wasn’t the end for BitConnect, but its cryptocurrency had already dropped in value by more than 90% to a lowly $17.25 by Wednesday.

What is BitConnect and why was it shut down?

BitConnect is a lending platform that allowed users to trade their Bitcoins in exchange for the platform’s native token and earn interest in the process. BitConnect was ultimately shut down because the platform turned out to be a Ponzi scheme and thus wasn’t able to repay its investors. What Is BitConnect?