BitConnect Crash and "Maintenance"
I've been vocal about my opinion that BitConnect was extremely risky and there were many red flags. Today BitConnect token flash crashed from $150 to $48:
Going to the bitconnect.co website shows "maintenance":
UPDATE (Aug 25, 2017):
The site now loads with the following message:
"Bitconnect Accessibility Update - Glitch in the website’s service
The bitconnect dashboard and exchange platform will remain inaccessible due to a glitch in the website’s service. We shall be aiming to reactivate accounts by 3:00PM (GMT), 27 August 2017. Read more
-The Team
Bitconnect"
The explanation can be found here Bitconnect Accessibility Update - Glitch in the website’s service.
They call it a glitch but simply some people found a way to withdraw more money they have put in.
END OF UPDATE (Aug 25, 2017)
And, of course, many suspected this will happen sooner or later and were warning people against "investing" in BitConnect.
For the signs that this was coming, see:
- Bitconnect Is A Scam - Red Flag #1: These Gains Are Impossible - Don't Make Craig-Grant Your Next Pirateat40,
- Bitconnect Is A Scam - Red Flag #2: No Exchange Support, aka "Completely Fabricated Market Cap" - Dark Pools Don't Define Liquidity.
It's instructive to read the comments and discussion there.
Finally, see about the markets where BitConnect is still trading. The native market on the BitConnect website shows $0, which probably means it was taken offline....
Let's hope that people who did lend their crypto to BitConnect will be able to recover some of the losses.
Digging further, we can see that https://bitconnectcoin.co/ is still up!
You can also see the BCC Block Explorer.
UPDATE (Aug 27, 2017):
Today I was able to log into their website but trading is suspended due to a "circuit breaker" when price volatility exceeds 10%. This is actually a good sign - having a circuit breaker would have prevented the Ethereum flash crash on one exchange which went down to cents in a matter of minutes because of stop-loss orders being triggered.
BitConnect has deactivated accounts which withdrew more funds than their balance ("negative [balance] accounts") but the remaining accounts are now unblocked.
Finally, the interest have been paid during the site shutdown.
END OF UPDATE (Aug 27, 2017)
Nice write up and analysis @brenda-nalle
I invested with them because of a certain YouTuber, then stumbled on all the scam information after the fact. I knew this day was coming, I just hoped I would get my investment back before it did. Ya live and you learn.
I actually "invested" a small amount myself to test it out. Now, I consider that money as "donated" :-(
I've seen videos where people were borrowing money to invest in BitConnect, which makes it very sad.
Yea borrowing the money would be a much worse situation to be in... I can't even imagine how they are feeling right now.
The site is still down and i think its for good, i hope investors will get there money back
s
Is it? I still get the "maintenance message".
If you are that eager to lose your money, why not give it to the poor?
I'm not sure why everyone is jumping to claim they were the hero to predict this as a scam the moment it may be hacked, just like other exchanges, ICOs or Genesis mining lately. Why won't you give it a few hours to let the dust settle before creating panic with unverified claims? Just my two cents. Let the site respond to a potential issue and then make a fair judgment.
I have no interest re: BitConnect. For or against. Simply reporting what's going on. Updated the post with the latest status.
The community is raising issues and red flags and BitConnect should address them to prove they are a legitimate business. Compare it to some other projects which are much more open, vocal about what they are doing, pointing to externally verifiable evidence, showing real activity in GitHub, etc. etc.
There are just too many hacks and scams in crypto space ultimately hurting everybody.
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