Connect with us

Featured news

BitConnect Shutdown Triggers Blood Bath For Investors

Published

on

Bitconnect
READ LATER - DOWNLOAD THIS POST AS PDF

Controversial cryptocurrency exchange, BitConnect, has announced plans to close down its lending and exchange platform triggering a bloodbath for investors. The move follows a spate of accusations from high profile figures, who have accused the company of operating a Ponzi scheme.

News of BitConnect imminent shutdown has sent fears in the cryptocurrency investment community, triggering a sell-off that shows no signs of slowing down. While most cryptocurrencies have been on a bear market, the situation has become worse in the recent past, seen by most cryptocurrencies prices plunging by more than 40%.

Cease & Desist Orders

Cease & desist orders, issued by regulators in Texas and North Carolina accuse BitConnect of engaging in the illegal sale of unregistered securities.

The letter from Texas accuses the company of defrauding and misleading investors. Authorities in North Carolina, on the other hand, have taken a swipe of the company’s purported 3,000% returns, which they maintain not realistic given the company’s core business

In response to the orders, BitConnect issued the following statement.

“In short, we are closing lending service and exchange service while BitConnect.co website will operate for wallet service, news and educational purposes.”

In November, the company was ordered by UK authorities to prove its legitimacy or face dissolution, a further indication that regulators around the world were becoming skeptical about its practices. The company had promised early investors that they would earn interest on lending bitcoins. It had also tried to entice new customers by loaning those Altcoins of its native currency, BCC.

According to the company, the cease & desist orders have made it impossible for the legal continuation of the platform. However, that appears not to be the case. The company is yet to address the many DDoS attacks that have plagued its website rendering it impossible for investors to withdraw their money.

BitConnect also operated a multi-level referral program that had the same features as a pyramid scheme as thousands of social media users tried to drive their sign-ups.

Another red flag in the company’s operations is the fact that it is yet to disclose a purported secret sauce, which it claims helps investors generate significant returns. The company has been touting an anonymous ‘trading bot’ that makes profitable trades and then shares dividends with investors.

Amidst the selloff, BitConnect says it will move forth with a proposed Initial Coin Offering. The company also plans to build an alternative exchange for its BitConnect token.

The sentiments have not gone well with current coin owners who continue to take a swipe at the company on social media networks terming it a Ponzi scheme. Some of the high profile personalities to take a swipe at the company include Ethereum founder Vitalik Buterin who insist its core business is a scam.

In a posting on its official website the company says it will bounce back once the bad press that has eroded its credibility cools off. It is still unclear whether BitConnect will come through on the proposed projects given that DDoS attacks are commonly used by controversial online marketplaces planning to exit a scam.

Cryptocurrency Bloodbath

BitConnect native currency, BCC, which touched highs of $400 early this year has since shed more than 90% in value after dropping below the $10 mark. The plunge has had a ripple on the entire industry as Bitcoin plummeted below the $10,000 mark for the first time, after touching record highs of $20,000 last month. Ethereum has also touched lows of $820 after hitting highs of $1,422.

Scammers have started to take advantage of the confusion that has gripped BitConnect users. Some accounts have cropped up on Twitter, presenting themselves as BitConnect customer support. One such account is @BitconnectStaff, which is tricking unsuspecting users into handing over details of their cryptocurrency wallets.

@BitConnectExch, on the other hand, is preying on users who wish to get their money out of the exchange by asking them to send all their cryptocurrency to a separate digital wallet.

Mt.Gox Comparison

The potential collapse of the popular trading platform has also drawn parallels from Mt.Gox, a favorite cryptocurrency exchange that went down in 2014

Mt.Gox collapse triggered a ripple effect resulting in bitcoin losing more than 70% of market value. Its failure has always been attributed to embezzlement and mismanagement. The fact that BitConnect investors are also finding it hard to withdraw their investments from the platform is eliciting suggestions that history could be repeating itself.

BitConnect ongoing woes echo a broader cryptocurrency crisis triggered by an uptick in regulatory scrutiny around the world. South Korea and Chinese regulators have already hinted at the possibility of cracking down on cryptocurrency mining and trading. Russia is also considering implementing some restrictions on cryptocurrency trading.

The BitConnect collapse all but continues to arouse concerns about the future of cryptocurrency investing. Even before the dust on hacks and scams settles down, worries about imminent crackdowns in some of the most significant cryptocurrencies market continue to exacerbate the situation.

We will be updating our subscribers as soon as we know more.

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

Image courtesy of Stacey Youdin via Flickr

Featured news

Can Sharding Fix the Limitations of Blockchain or is the Network Doomed?

Published

on

READ LATER - DOWNLOAD THIS POST AS PDF

Performance and scalability issues have bottlenecked the future development and real-life application of popular mainchains, such as Bitcoin and Ethereum. Many methods have been employed to solve this problem, but all of them have their own pros and cons.

The Impossible Trinity – safety, decentralization and scalability, coined by the blockchain world, bars the way to the future and the industry has fought hard to figure out an optimized solution. Sharding, proposed by Ethereum, has been viewed as one such candidate.

What is sharding?

Sharding technology splits a network into smaller partitions called shards, which contain an independent state and transaction history. The idea behind this is to divide a huge amount of workload into smaller pieces to make life easier for every participating node.

If sharding were to be adopted, each node will only need to keep a part of the network’s information, instead of downloading the whole ledger, which can lead to a large data file. Subsets of nodes grouped into one shard will only process transactions specific to that shard. By doing this, the network will be able to process many transactions in parallel, and the performance will continue to increase with more nodes joining in, thus making the network highly scalable.

Continue Reading

Altcoins

Encrypgen’s New HODLING Incentive Program May Send DNA Token Soaring

Published

on

Encrypgen
READ LATER - DOWNLOAD THIS POST AS PDF

Cryptocurrency traders have enjoyed a Bitcoin moon shot during the past few months.  Those gains have created a much more enjoyable environment for crypto bulls.  Whether it’s a temporary or permanent increase remains to be seen but hitting the 10,000 level has put everyone in a better mood.  Unfortunately, altcoins have not had experienced the same type of gains and are lagging significantly behind Bitcoin.

I’ve written articles in the past year that there is at least a decent chance that many altcoins won’t survive the current environment.  The ones that do will do so because they created a platform that has real world usage.  After spending countless hours researching many of the existing altcoins, I’ve yet to see a company that is more promising than Encrypgen (DNA).

Encrypgen Background Information

Encrypgen is a genomic blockchain network that provides customers and partners with best-in-class, next generation, blockchain security for protecting, sharing and re-marketing genomic data. This creates a fair marketplace for a person’s DNA that can be stored privately and sold (if a person wishes to do that). A person’s DNA can also be shared privately and securely with their physician for their personalized care.

Typically, people can send their DNA off to a lab to find out who they are and where they come from. As fun as that might sound, there is a significant security problem…

Continue Reading

Bitcoin

Investors Beware: Another Large Bitcoin Crash Might Be Coming

Published

on

Bitcoin crash
READ LATER - DOWNLOAD THIS POST AS PDF

The crypto prices have surged quite high in the last few months. Of course, their progress is nowhere near the one seen in 2017, but they appear to be getting there, one day at the time. However, things might not be as simple as that, and according to recent performance — it is more than possible that a major Bitcoin crash is incoming.

The fact is that cryptos saw a massive amount of growth in a very short period. Bitcoin itself more than doubled its price in only two months. Now, the rally is starting to crash in on itself, and the coin is already about $1,000 lower than last week. If such development does come to pass, a lot of people will experience quite large losses, although experienced investors might find some opportunities, and leverage in order to enhance their holdings’ long-term value.

For example, Bitcoin dominance is expected to crash very quickly, which will work in favor of quite a lot of altcoins. While this does not seem to be the best time to invest in BTC, altcoins are another story, and diversifying a portfolio now might end up being very profitable in days to come.

Bitcoin behavior mirrors the pre-bear market situation

The crash that analysts are predicting right now comes as a direct consequence of all the hype that has been building up in…

Continue Reading

Elite