Saturday, 19 September 2020

BitConnect Pressured to Disclose or Face Closure in UK

The UK Registrar of Companies has spoken with a readiness to shut down access to BitConnect, as the company has a two-month deadline to prove it is not running a pyramid scheme.
If BitConnect fails to give reasonable proof, the company would be dissolved and its assets would be seized. An official document from the Registrar states that:

"Upon dissolution all property and rights vested in, or held in trust for, the company are deemed to be bona vacantia, and accordingly will belong to the crown."

And since BitConnect is gathering funds in Bitcoin, the regulators may have to deal with significant funds in the leading cryptocurrency.

BitConnect also has problems with its registration and will have to straighten its papers with the UK authorities if it plans to continue existing as a legal entity.

BitConnect has a regular blog with a single topic- the promised rise in BitConnect tokens. However, the rise in market price does not mean anyone can benefit from it. BCC shares, unless confused with Bitcoin Cash, are not traded on the open market.

The token only appreciates when drawing in newcomers, which receive less and less BCC in exchange for an investment of Bitcoins. In the end, BitConnect pays out in cash, while keeping the Bitcoin gains.

At the moment, the rally in Bitcoin prices allows BitConnect to be solvent, but its referral program looks like a classic pyramid scheme and one day, the project may run out of new subscribers and crash, despite the loud promotional events the project is running.

Bitconnect now even looking for Telesales people. This is the Wolf of Wallstreet all over again. @wolfofwallst are you watching this?
The newest rally in Bitcoin prices propped BitConnect up once again, and for now the tokens have a price of $264.85, wholly defined by the internal BitConnect exchange.

source: cryptovest.com
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