What seemed too good to be true ended up being just as Bitconnect almost shut down.

Long accused of being a Ponzi scheme, Bitconnect closed its cryptocurrency loan and exchange service this week. As stated on their website, Bitconnect has received letters of termination and discontinuance from two US securities regulators, resulting in the closure of their loan and equity platforms. exchange. Nevertheless, Bitconnect will continue to manage its website and portfolio service

Sketchy's Ponzi & # 39;

Since its inception in January 2017, many were skeptical about Bitconnect services. In essence, Bitconnect Bitcoin had to be sent in exchange for Bitconnect Coin (BCC) on their stock market.

Once you had BCC, you were guaranteed "up to 120% back a year." Users were informed that they were gaining interest by holding their piece "to help maintain network security."

<img alt=" Ponzi "src =" https://cointelegraph.com/storage/uploads/view/b1e2f0fa3f4492793c232820eeceacc9.jpg "title =" Ponzi "/>

] Source: Bitconnect.co

Loan Platform

The Bitconnect Loan Platform is what really led to the accusations of a plan to Ponzi, as well as orders to cease and abstain from regulators.

<img alt=" Lending "src =" https://cointelegraph.com/storage/uploads/view/fb7e2f1a92f5b8899733eb225350d7c4.png " title = "Ready" />

Source: Bitconnect.co

As above illustration explains, users have bought BCC with Bitcoin , then lent their BCC on Bitconnect loan software.

Users would receive different percentages of interest depending on the amount of CCB that they had lent.

<img alt=" Loan "src =" https://cointelegraph.com/storage/uploads/view/cc1631905dda81e293c1e8f35c3f9465.jpg "title =" Ready "/>

] Source: Bitconnect.co

Add in the reference system seen in many other Ponzi schemes and the fact that the operation was performed anonymously; It's hardly surprising that all this business ends in tears.

The loan system was the main attraction of Bitconnect because of its huge potential for yield.To participate in the system, you had to buy BCC – which saw the token reach a record high of $ 437.31 per CCB before falling in value after this week's close.

That being said, cryptocurrency is still alive and is trading around $ 35 at the time of writing.

<img alt=" BitConnect " src = "https://cointelegraph.com/storage/uploads/view/fbac0c391f5dba7163ed2f58457f19ce.jpeg" title = "BitConnect" />

Social Media Burns Bitconnect

Following the closure of Bitconnect, social media was in turmoil with feelings of "I told you so.

pointed out that BCC was still trading like a real riddle.

All that is wrong with crypto in one picture! #bitconnect #scam #ponzi #cryptocurrencies #bubble pic.twitter.com/t5o9Nm1rZ4 – Dr. Julian Hosp (@julianhosp) January 18, 2018

Francis Pouliot share a hilarious video of a meeting of Bitconnect which had been slightly doubled.

People have invested billions of dollars in this (This video is actually hilarious recommended for namesphiles) https: // Francis Pouliot (@francispouliot_) January 17, 2018

American cartoonist Spike Trotman shared one of the most entertaining and accurate predictions in September 2017, postulating that Bitconnect was indeed a Ponzi scheme.

His latest tweet is a screenshot of the Bitconnect Reddit page, with subreddits for a suicide hotline as well as a megaclead of massive legal action. Do yourself a favor and take a look at the complete threat of Iron Spike on Bitconnect – that's great.

The current state of the Bitconnect subroutine is really a thing to behold. https://t.co/QoGgUiE0XM – Iron Spike (@Iron_Spike) January 19, 2018

Rodolfo Novak shared a photo of the monumental collapse in Coinmarketcap's Bitconnect price, put Highlighting the Ponzi's moment the shot hits the exit time.