Bitstrade cryptocurrency investment scheme suspended by US regulators
Promising projects that can demonstrate decent performance are periodically encountered in the world of cryptocurrencies. However, when the organizers promise guaranteed profitability and begin to aggressively attract investors, American regulators step in..
First they got to BitConnect, Davor Coin came into their field of vision earlier this month, and now it’s Bitstrade’s turn, receiving an immediate halt to fraudulent activity from New Jersey regulators..
Like the other two platforms, Bitstrade (or Bitstrades) used its own cryptocurrency, distributed under the ticker BSS, and offered investment services. However, the US authorities considered that the sale of unregistered tokens to individual investors was nothing more than a securities fraud.
It is noteworthy that in this case, regulators managed to intervene even before the pyramid managed to gain prominence and attract a large number of investors. The BSS token has not yet been added by the CoinMarketCap service at the time of recent events.
Such investment schemes are rapidly losing their viability amid fluctuations in the cryptocurrency market. As long as Bitcoin continues to trade around the $ 8,000 level, no platform of this kind can be guaranteed to survive for at least a few months. If BitConnect lived for about a year, then Davor Coin took less than two months to collapse.
Thorncoin took a similar path, which also did not manage to gain fame and no longer accepts European users..
Even supposedly savvy investors hoping to get in and out quickly can lose their money as, in light of the current circumstances, scheme organizers increasingly restrict withdrawal options.