The controversial cryptocurrency exchange platform, Bitconnect, which has been flagged by several news sources as a ponzi scheme, has been taken down. Users are unable to cash in on the local BCC tokens, resulting in huge losses for investors.
The cryptocurrency market crashed after reports that the Chinese authorities are cracking down on cryptocurrency exchanges and mining. This sparked the huge sell off in the BCC token, which dropped from as high as $400 to just $7, as shown by coinmarketcap.com.
One investor claimed in a Reddit post to have lost over $400,000 after the platform went under. Whether it was an unfortunate coincidence of regulatory scrutiny, bad press and a market sell-off that caused bitconnects demise or in fact they were really a Ponzi scheme, it has hit some investors hard, losing large sums of their investments. However, this shouldn’t put you off investing in cryptocurrencies, see out recommended exchanges.
We look at how bitconnect went under in the infographic below.