BitConnect Token Sale Planned For January 10th Gets A Cease And Desist From Texas State Securities Board
In a news published on their site, the Texas State Securities Board issued an Emergency Cease And Desist order for BitConnect planned token sale on January 10th.
According to the order, BitConnect was claiming to offer tokens with 100% annual returns, which the TSSB determined qualify as unregistered securities.
BitConnect was also looking for recruiters to promote its token, which the Texas agency determined qualify as agents who are not registered to sell securities in Texas.
At the moment of writing, BitConnect token was trading at $385 on Coinmarketcap, on a $2.37 billion market cap. It's worth noting that between the date of the cease and desist order - January 3rd - and now, the market cap of BitConnct shrunk from $4.1 billion to $2.37 billion.
In certain circles, the lending facilities of BitConnect, as well as their unusually high profits claims are frowned upon as being unrealistic at best, and scammy, at worst..
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https://steemit.com/bitcoin/@socky/texas-state-securities-cease-and-desist-order-against-bitconnect-is-an-effort-to-limit-access-to-only-the-elite
bitconnect must have a dam good trading bot ;)
They should just sell that magically trading software and make more money than lending.
It really is a concern for the future of cryptocurrencies if the government keeps hammering things down.
I wouldn't call BitConnect quite "the future of cryptocurrencies"...
agreed.
they smelled like a scam from the begining, they may be one the coins to fall this year
Bitconnect isn't the future of cryptocurrency, as its just a lending platform which is the first of it's kind that gives it's investors returns on their investment on a daily basis.
the cease and decease seem to have battered the buyers confident in bitconnect. the loss in market cap is huge and that will to more people dumping the coin if they havent even began already, look like more goverments institution are clamping down on cryptos
/inb4 bitconnectors/
OMG stop spreading FUD, OMG you don't understand Bitconnect, just don't invest then!!!!111!!!
:D
It is indeed
Thanks for the updates and stats @dragosroua
Stay Blessed
Bitconnect is based in England and this order does not affect the company directly, but according to and investigated, it has not disclosed anything about its principles, financial conditions, or the strategies to obtain the profits of the investors and and not yet provided a physical address in England, I'm not surprised that they think that is suspicious
What to do when your ponzi is looking momentum and profits are slowing down? While release an ICO for one last cash grab.
Yeah I'm not a fan of any scheme like that where they are making empty promises that they can't keep. I guess this is an example of good government intervention, but I'm sure we are about to see a lot of bad.
Good news...Much obliged for sharing it