Bitfinex lists its LEO utility token!

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According to a recent blog post by Bitfinex, yesterday Bitfinex listed its own utility token LEO (full name – UNUS SED LEO). Its main mission is to empower the Bitfinex community. The company previously closed a $1 billion initial offering sale. Currently on Bitfinex.com is no information about the new utility token. It will be trading against BTC, USD, USDT, EOS, and ETH. 

UNUS SED LEO raises $1 billion

The original name of the token is rather long, but it is the name of its initial issuer. Judging by recent news, Bitfinex closed its token sale in just 10 days. The company had a private sale in which unknown investors invested sums ranging from $1 million to more than $100 million. However, the raised sum wasn’t just in the form of USD. It was a combination of USD, BTC, and USDT.

“In addition to our excitement around bringing such an unprecedented and powerful token to the heart of our community, the Bitfinex team remains dedicated to continuing to grow and develop core infrastructure for our industry as a whole. We remain invigorated and humbled by the support of our users, personnel, and beneficiaries, and welcome everyone to the era of UNUS SED LEO,” reads their blog post. 

Source:

https://medium.com/bitfinex/unus-sed-leo-to-be-listed-on-bitfinex-on-monday-following-completion-of-1bn-contribution-10e5d56abf9d

Photo by Bitfinex

Cryptopia goes into liquidation because of debt, cannot return customers’ assets!

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Recently, Cryptopia, a New Zealand-based cryptocurrency exchange which previously experienced a large security breach, announced that they are going into a liquidation process. They have appointed David Ruscoe and Russell Moore from Grant Thornton New Zealand as the liquidators. 

The result of a recent hack

Previously we reported that Cryptopia suffered from a hacker attack and for a brief moment it almost seemed like Cryptopia has lost all control over their Ethereum wallets. The exchange lost around 30k Ethereum and other assets. Since then Cryptopia had notified the New Zealand police and other legal instances.

After this, judging by their Twitter communication in mid-March, they entered a “coin securing” phase. Within this phase, they said that they are moving all the assets to new wallets. Afterword, they re-opened trading on their platform, and around mid-April they allowed BTC, LTC and DOGE deposits, but never really opened up withdraw functions.

Later, at the end of April, they stopped communicating for a couple of weeks. Then came out with the recent announcement about the liquidation process.

Users cannot withdraw funds because of an investigation

Cryptopia just published a “Liquidation FAQ” where they state:

“We are now undertaking an extensive process to confirm amounts owing and available to return to customers. This is a complex process and will likely require direction from the New Zealand Courts. Until the investigation has concluded we cannot return any crypto-assets to customers.”

Also, they claim that their first priority is to secure all crypto-assets on the exchange. But the weird thing is that they “need to confirm the amounts owing and available to return to customers”. And this process, as they say, is very complex and they need the direction of New Zealand courts “to make sure a fair legal solution is found”.

Went into liquidation because their debts fell due!

As they describe in their FAQ, Cryptopia’s main reason why they’re entering liquidation process is their situation with debt. Customers and Twitter users are commenting that one of the reasons why Cryptopia cannot answer anything about their customer’s assets is because they are thinking of covering their debts with customers money.

Every FAQ about customers assets ends with the same phrase: “Until the investigation has concluded, we cannot confirm whether individual customers will get all of their crypto-assets returned,” or “We cannot confirm any customer balances until we have completed our investigation,” or “At this stage we cannot confirm what will be returned or whether crypto assets will be returned as crypto-assets or fiat currency.”

Basically, they say that they know nothing about their customer’s assets, and they don’t guarantee that they will even get them back at some point.

Respectively, many users are really upset to hear this kind of response from Cryptopia. And they rush to conclusions such as Cryptopia is exit-scamming and stealing customers assets. But that seems like a logical response to what Cryptopia had explained. The exchange basically says that they got huge debt, and they won’t allow anyone to access their funds. Also, they don’t say whether customers will get their funds back. Whether or will they get them back at all, and they cannot even provide a reasonable timeframe.

Binance vs Cryptopia

As we recently witnessed, Binance also experienced a security breach. But the quality of communication and transparency that Binance offered cannot even be comparable to Cryptopia. First of all, you cannot even compare the involvement of Changpeng Zhao, the CEO of Binance, and Alan Booth the CEO of Cryptopia. Alan hasn’t tweeted since October 2018, and Cryptopia’s Twitter account isn’t a good example of communication as well. Binance ruled out multiple tweets a day, explaining everything and answering to almost everyone’s questions. But you sure can’t say that about Cryptopia! Since the announcement about liquidation, they have posted 3 tweets including the one with the announcement.

Funny enough, their CEO once in an interview to CoinCentral said:

“So, for us [Cryptopia], the first thing is trust. If people can’t trust your brand, and that means every part of it, you’re not going to succeed.”

It looks like they deliberately chose the path of not succeeding.

People are really frustrated.

Source:

https://support.cryptopia.co.nz/csm?id=kb_article&sys_id=20d84d54db69778084ed147a3a9619bc
https://www.cryptopia.co.nz
https://www.coingecko.com/en/exchanges/cryptopia?utm_content=cryptopia&utm_medium=search_exchange&utm_source=coingecko
https://coincentral.com/interview-cryptopia-alan-booth/
https://twitter.com/cryptopiaceo?lang=en

Estonia Strengthens Their Cryptocurrency Laws

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On May 2, the Estonian government approved the Ministry of Finance’s new laws on the fight against money laundering, terrorism, and state fees. These include strengthening the cryptocurrency circulation laws. 

Priority Number One!

Financial Chief Executive Martins Helme believes that “one of the most important but not the last” step in this direction should be to tighten the conditions for virtual currency circulation and virtual wallet services.

The minister said: “The banking sector has learned a painful lesson and now we need to address new international risks, of which the risk of cryptocurrency is one of the most important.”

Moreover, he stressed that the fight against money laundering is one of the priorities of the new government. It started on Monday and will receive special attention.

Increasing fees and a background check

According to Helme, the licensing conditions will be changed for companies dealing with cryptocurrency exchange for cash and vice versa. Also, as well as for the license of a virtual wallet service provider. When issuing a license, the Money Laundering Data Bureau will check the biography and reputation of the company’s board members. To obtain the license, a foreign company will have to open a branch in Estonia. However, the license fee will increase from 345 to 3300 euros. Companies that already have a license will have to apply the requirements of the updated legislation.

Estonia – The Crypto Legislation Pioneer!

On April 24, Estonian President Kersti Kaljulaida approved the new Estonian government with the head of the Center Party, Jiri Ratas.

In Europe, Estonia is a pioneer in the legislation development that favors the cryptocurrency sector. The small Baltic state was the first to issue operating licenses to cryptocurrency companies. Now the number of crypto-companies registered in Estonia is around 1000. The regulator issues two types of licenses. According to the Estonian news agency Err.ee – in 2018, Estonia licensed 444 wallet providers and 526 cryptocurrency trading platforms.

Estonia is known for its advanced electronic government infrastructure. Also, the country has a unique electronic residence program that provides individuals and corporations with access to fast and cheap services. The License process takes only two weeks. Compliance with legislation is an important precondition for obtaining an operating license.

Source:

https://kripto.media/igaunija-kriptovalutu-aprite/

Photo by flickr.com

Previously Hacked Crypto Exchange Zaif Resumes Their Services.

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A Japanese cryptocurrency exchange Zaif, which was previously hacked for about $60 million, resumes operating on their services. Last year September 19, the hackers stole $60 million in BTC, BCH, and MONA with unauthorized access to the exchange’s cold wallets. The good thing is that the company had its own asset reserve of around $20 million. They made an agreement with a Japan investment company called Fisco to receive a $44.5 million investment in exchange for a large share of ownership.

Zaif Changes Owners

Based on the previously mentioned investment by Fisco, this Monday, April 22, Zaif officially signed over its business to Fisco. During all this time since the hack in September 2018, the exchange’s services (trading, depositing, withdrawing, and registering) weren’t operating. Now everything is back up and running. The new owners reinstated all services on Tuesday, April 23. However, while previously the company’s owners said that the investment from Fisco will be in exchange for a large share of the company, now it sounds like they are handing it over completely.

Refunds Users Lost Funds

As mentioned before, Zaif had an asset reserve of $20 million which they dedicated to refund its users. Fisco added their part of $44.5 million. The company explains that all the BTC and BCH holders have received their funds back. However, users who held MONA received only about 60% back in crypto. The rest of the compensation consisted of Japanese Yen at the rate of 144.548 yen per MONA.

Source:

https://www.coindesk.com/hacked-crypto-exchange-zaif-resuming-full-services-under-new-owner
https://corp.zaif.jp/info/10789/

Photo by Zaif.jp

eToro is About to Launch Stablecoin Versions of Major Currencies!

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eToro is a Cyprus-based social trading and multi-asset brokerage company. Recently they announced plans of implementing eight stablecoin versions of other major currencies. Currencies such as the Euro, Yen, and Swiss francs within their platform. They believe that users are in need of this feature.

eToro Launching a Crypto Exchange

eToroX is the new crypto-to-crypto service/exchange that eToro is about to launch, and implementing eight stablecoins is just an introduction of an ambitious plan to offer tokenized versions of other assets. These assets might also include precious metals and fine art.

If you need to refresh your memory on what is a stablecoin – read our explanatory article!

The major problem with stablecoins is that many skeptics believe that usually, companies haven’t got the reserve of fiat to fully back the stablecoins on a one-to-one basis. However, eToro claims that their company is backing the stablecoins with futures contracts.

Concerns of the Public Demand

Arieh Levi, a senior analyst at CB Insights believes that the users will stick to their platforms which they already use:

“It’s a pretty saturated market in terms of crypto trading. I’m not sure there will be too much demand as the existing players will likely stick to the platforms they already use.”

Yoni Assia, the CEO of eToro. Image source: flickr.com

However, eToro CEO Yoni Assia stresses that he believes that there will be demand for these type of assets. He says that many traders would want to “bet on the price movement of Bitcoin against currencies like the Canadian and Australian dollar.”

The main concern is that eToro will have to compete with such industry giants as Binance and Coinbase Pro.

Pushing Into the U.S. Market

The launch of eToroX exchange is a part of getting into the U.S. market. Recently eToro began offering a few of the most popular cryptocurrencies like Bitcoin, Ethereum, Ripple and etc.. This was done specifically for the U.S. market. Now, eToro claims that around four or five percent of new registrations come exactly from the U.S. They are pleased with these numbers and believe that they are doing the right thing.

While many think that the bear market is over for quite some time, for the average millennial trader, it might not seem that way. However, along with the bull market, new traders will be coming in and the need for a wider range of platforms will be in demand. From that point on, we believe that it’s only a matter of marketing for eToro.

Source:

http://fortune.com/2019/04/16/etoro-exchange/

Photo by flickr.com

Lithuania changing its crypto regulations for ICOs again!

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Lithuania yet again plans to update regulations for ICOs (Initial Coin Offering), virtual currency exchanges and depository wallet operators. Also, they plan to introduce requirements for them to ensure effective prevention of money-laundering and terrorism funding.

Transparent legal environment

Sigitas Mitkus, director of the Finance Ministry’s financial market policy department commented on the issue. “We want to create a transparent legal environment for virtual currency exchanges, depository wallet operators and ICO initiators. We also want to contribute to ensuring better consumer protection,” he said in an interview.

Under these amendments, only legal entities and their branches registered with the Center of Registers will be able to act as operators. They will also have to execute the Law on the Prevention of Money Laundering and Terrorist Financing. Also, they will have to check the clients’ identity and inform the Financial Crime Investigation Service about large financial transactions, he said.

It will be a requirement for companies to identify their clients and check their identity before providing services. However, this applies only if the operation value exceeds 1,000 euros. Also, they need to provide information to the FCIS, if the operation value is now less than 15,000 euros.

Going even further than EU directive

“By introducing limits for financial operations, we are going further beyond the EU directive. We will probably become the first in the world to implement the FATF (The Financial Action Task Force) recommendations and apply the requirements not only to the conversion of virtual currency to traditional ones and vice versa, but also when converting one virtual currency into another,” Mitkus said.

The amendments are aimed at transferring the fifth EU Anti-Money Laundering Directive (AMLD 5) and the FATF recommendations, adopted in October, into Lithuanian law.

Lithuania is very actively trying to find a proper regulation for crypto!

At the beginning of this year, the Bank of Lithuania issued an updated document on its official position on cryptocurrency and Initial Coin Offerings (ICO). Arguing that financial market participants are still allowed to receive payments only in the traditional fiat currency and it is forbidden to receive payments in the cryptographic currency.

At the beginning of March, the Financial Transactions Working Group issued preliminary guidance on cryptographic currency. Urging states to prevent money laundering and terrorist financing. Also, to provide licensing in the crypto sector and adapt the “Know Your Customer” principle.

Source:

https://kripto.media/lietuvas-finansu-ministrija-plano-sagatavot-grozijumus-likumos-par-kriptonozares-kompaniju-darbibu/
https://www.baltictimes.com/lithuania_plans_to_step_up_virtual_currency_control/

How to Short Bitcoin? A Beginners Guide

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In this article, we will overlook how to short Bitcoin. Most beginner traders think that you can only profit from cryptocurrency price increasing. The basic belief is that if Coin A goes up in price – you profit, but if coin goes down – you lose money. However, this is a very common misconception between underdeveloped financial instrument traders such as altcoin pairs in small exchanges or just inexperienced traders. This brief guide will teach you what is shorting and how you can short Bitcoin.

What is shorting?

The definition of shorting is borrowing any asset or security and selling it with a belief to later sell it for a lower price and after giving back the security keeping the sell-buy price difference. In the essence one is shorting if he believes that the price is going to go down, however, shorting can be used as a tool for hedging. Usually for borrowing assets from a broker for shorting you need to pay some interest, however, some brokers offer a shorting interest free marking it up in trading fees.

Example of shorting

John is grocery shopping at his local market and sees that bag of apples costs 100 USD. John thinks that the price is far from the real value of the bag. He goes to his friend`s house and borrows a bag of apples. Then he goes back to the market and sells his bag. A week later, he comes back to the market and sees that apples now cost 80 USD per bag. He buys a bag for 80 USD brings it back to his friend’s house. The total outcome of this is that John has earned 20 USD due to the fact that he sold the bag for 100 USD and bought it back for 80 which leaves him with 20 USD difference.

You can short Bitcoin on following exchanges

How to short Bitcoin on BitMEX

Lets image that you want to short Bitcoin. The steps that you need to take are as following:

  • Log in or create your own BitMEX account
  • Select your order type: Limit order will let you set exact buying/selling price, market order will execute trade at current market price, Stop market will place a stop-loss at market price when price reaches your target,  Stop limit will do a limit order with stop-loss, Trailing stop will execute order with set price limit from a floating point, take profit-limit will set an opposite order of your current position at your chosen price and amount, Take profit-market will place an opposite order of your current position at certain point and amount within market price.
  • Place your order and you are good to go! Remember to always adjust your margin.

Disclaimer: Always trade with cautions. This guide is for educational purposes only and is not financial advice. Any content displayed is not encouragement for any specific financial decisions e.g. shorting Bitcoin.

7 Ways How to Report a Scam Exchange

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In this article we will look over the 7 ways how to report a scam exchange.

So you have been scammed by a shady exchange. This is nothing new in the cryptocurrency field, and many of us have been there. Precedents like BiteBTC, Coinsmarkets.com, Bitconnect, Bitpetite and many more have “exit-scammed” and stole their users’ funds. Although previous practice shows that there is not much you can do about this situation, we stress it’s not all that black and white. Here’s what you can do if your exchange of choice exit-scammed, locked you out of your funds, doesn’t let you withdraw your funds, closes their website and etc.

1. Contact your local authorities

The first thing you can do is to contact your local authorities. You go to your local police station and file a complaint about an internet fraud. From that point on, it is up to them if they want to get in touch with their international colleagues and address the situation. It’s almost the same practice what you would do if your bike got stolen or any other everyday theft. Of course, it is up to you if you want to help the investigation by actively getting involved.

2. Let everyone know of your situation publicly

Next, you can do a series of posts, blog posts, twitter threads about your particular case online. Use social media like Facebook, Twitter, LinkedIn, Reddit, Bitcointalk or any others. Make sure you tag in the subject which scammed you. Also, tag in your local authorities pages or profiles. Use hashtags like #scam #fraud and similar to raise more awareness of your situation. Also, make sure to attach any visual material you have. Try to find similar cases to yours and engage with other people who are in the same position as you are. Maybe somebody got further in the case than you and knows something you don’t.

3. Contact your bank

If you sent your funds to the exchange with the help of your local bank account, and these funds are 100% legal and you can prove it, you can contact your local bank. Contact them by explaining your situation and providing bank accounts or addresses where the money was sent. You can raise awareness by letting the bank know that this particular bank account defrauded you. This is done so that the bank can identify these bank accounts and probably interfere their future operations. Maybe they’ll even black-list this account.

4. File a complaint at the U.S. Commodity Futures Trading Commission

While the previous three options were related to your local authorities, this is where international authorities come in. CFTC is an international establishment and their mission is to protect users from internet scams. You can report a scam on their website. Their mission reads:

“The mission of the Commodity Futures Trading Commission (CFTC) is to foster open, transparent, competitive, and financially sound markets. By working to avoid systemic risk, the Commission aims to protect market users and their funds, consumers, and the public from fraud, manipulation, and abusive practices related to derivatives and other products that are subject to the Commodity Exchange Act (CEA)”

In this link you can report your scam exchange by describing the situation, telling about the firm/individual you are complaining about, telling about yourself, and the instruments that you used. Also, you can upload additional files which would help the investigation. 

5. Federal Bureau of Investigation: Internet Crime Complaint Center (IC3)

Another international option is to file your complaint to the FBI special Internet Crime Complaint Center. Their mission is to ensure positiveness and safety environment in online advertising, freeware, mobile apps, and even virtual currency. In the past couple of years, the FBI IC3 Center has received thousands of complaints about more than $15 million stolen in crypto scams combined. You can file your complaint by filling out the complaint form.

Previously their primary focus was on Telephone, online advertising, phishing e-mails, and pop-up messages, but now they have involved cryptocurrency-related scams as well.

6. Better Business Bureau

BBB is a trust marketplace where buyers and sellers trust each other. Although this company is mainly focused on U.S., Canada, and Mexico, it handles international companies and is willing to guide a scam victim through the process of filing a complaint. Also, they have their own database where you can search whether the company have any other complaints.

Just visit their webpage and follow the instructions. 

7. USA.GOV’s Online Safety

Although you might not be from the United States, you can contact them to find out which exact agency you should contact for your specific case. The page consists of a few links of government authorities which could handle your case. They mention government authorities such as the FBI, the Federal Trade Commission (FTC), EConsumer.gov and the Department of Justice (DOJ). In addition, they have put out some pointers on how to protect yourself on the internet.

Visit their webpage for more information.

Conclusion

We contacted many lawyers and people who are connected with law and finance. They all say that you should better forget about your money/investment which you lost because there is literally nothing you can do. The main reason being that these companies have a hidden true beneficiary and they choose specific countries where to register. Mostly those are countries with high risk jurisdictions which aren’t cooperating with international organizations. In addition, it is relatively easy to become a licensed registered agent within these countries. The competition has grown fierce, costs have gone down, and it’s easy to start a reselling business and still offer attractive pricing while raking in a nice margin.

You can check the list of some of these countries here and here.

In this article we kind of proved the opposite. Actually, there is so much you can do. You can report a scam to these authorities. Those are your funds. Nobody likes to lose money. These cryptocurrency scam exchanges always seem legit judging by their UI and special offers they provide. That is a clear consumer deception, and the authorities should properly address these cases. Hey, at least it is better to sit around and do nothing about your money. Even if you will not get your funds back, you will have the feeling that you did everything you could. 

Source:

https://www.lifewire.com/how-do-i-report-internet-scams-fraud-2487300
https://forms.cftc.gov/Forms/TipsAndComplaints.aspx
https://www.cftc.gov/About/MissionResponsibilities/index.htm
https://complaint.ic3.gov/default.aspx?
https://www.bbb.org
https://www.usa.gov/online-safety
https://www.cryptovibes.com/editors-choice/where-to-apply-if-you-got-scammed-by-exchange-or-fake-cryptocurrency/
https://www.streber.org/2015/10/jurisdiction-spotlight-seychelles/
http://www.fatf-gafi.org

SHOCKING: BiteBTC is still Scamming ICOs And Users! UPDATE!

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The UPDATED text is at the end of the article!

Recently we covered a news story about BiteBTC.com. To recap – they announced that a fire had occurred within their data centers on new years eve and that all their main backup servers were destroyed. After this, a storm of negative user complaints fired about their accounts being inaccessible. They neither could access their accounts nor withdraw any funds. Above all, this happened three days before the annual Proof-of-Keys event, where users withdraw all their funds from exchanges to see the exchanges ability to provide solvency. Naturally, this raised a lot of suspicion about a possible exit scam. When we published the article, BiteBTC.com blocked us on Twitter. What kind of message does this send to us? Let’s see how far the situation has escalated up until now.

BiteBTC.com changes their legal address.

While browsing the bitcointalk.com forum, we found a senior user (subwoofer12) post who had noticed that bitebtc.com changed the footer of their front page. In order to confirm these claims, he demonstrated a couple of screenshots from the bitebtc.com website. Previously their footer, on which we based the information about their legal headquarters, was:

“Copyright © 2018 FINANCEFIRST PTE. LTD. All rights reserved. Consumer advisory – FINANCEFIRST PTE. LTD. (UEN 201706635G) the holder of FINANCEFIRST stored value facility, does not require the approval of the Monetary Authority of Singapore.”

However, now they have changed the footer to:

“Copyright © 2019 First Finance LLC, Seychelles. All rights reserved. Consumer advisory – First Finance LLC the holder of BITEBTC stored value facility, does not require the approval of the Seychelles Financial Services Authority.”

In contrast to the previous information, there is not much you can find about this new Seychelles location they have provided. It is an off-shore zone. Typically such companies go offshore to avoid taxes, money laundering, and corruption claims.

As subwoofer12 writes: “Perhaps trying to hide owner/shareholder information by incorporating in Seychelles, it’s a little bit late for that now.”

The owners of BiteBTC.com?

The user Subwoofer12 did very good work on finding information about this particular case. He managed to get the business profile of their company from the Accounting and Corporate Regulatory Authority (ACRA) Of course, this information could not be 100% accurate.

It shows that the owners of FINANCEFIRST PTE. LTD. are two Singapore citizens Ng Chee Siang (The director) and Sim Zi Chao (The secretary).

Also, subwoofer12 found a little of background information on these two guys, he writes:

“If these two want to resolve the situation you can start by returning all the money that you’ve stolen from your customers
There’s a chance these are the wrong people, but I’m almost sure that I’m correct. Both of them have an interest in finance, they used to run this blog together https://investmentstab.blogspot.com/ Viewing post activity on LinkedIn shows them liking topics related to Blockchain
It seems that they met each other while interning at the Bank of America in Singapore, looking at their work history on LinkedIn the periods of time match up.”

We do not assure that these are the people behind BiteBTC. We are only portraying what is available on the internet and what people are claiming.

BiteBTC.com now is asking for 0.01 BTC deposits to restore accounts!

The bitcointalk.org forum thread on this case was quiet for a while, but a few days ago a user westbanker posted an image which shows that the official BiteBTC support e-mail asks for a 0.01 BTC deposit to rectify his account.

If this is true, then this is an absolute madness!

Here is a e-mail conversation from with westbanker and the BiteBTC.com support:

“Me: When are my funds going to get restored to my account? I have been waiting almost 2 months.

Them: We will have to rectify your account for that
Once we rectify your account
Your issue will be resolved immediately.
Reply us back so we can tell you the procedure to rectify your account!

Me: How do we rectify my account?

Them:
You will have to make a deposit of 0.01btc to the rectification wallet address we will provide for you to rectify your account.
Once we rectify your account the btc will be refund back to you and after that your issue will be resolved immediately.
Reply us back so we can provide you the rectification wallet address to deposit into!

Me: I habe to give you money to get my money back? No, that’s not how this works.
You are scamming people. Give me my fucking money back

Them:
We’ve nothing to do with your money
Just to rectify your account
Then once we do that
Your money will be refund back to you immediately

Me: Why do I have to send you money to get my money back? Please explain that to me

Them:
The btc is for us to rectify your account so that your issue can get resolved
We’ve nothing to do with your money
It will be refund back to you once the rectification is done

Me:
Explain exactly how you need more money to rectify my account.

What are you spending money on to rectify your own files?

Them:
It’s not your work
It’s our work okay!
If you want your issue to get solved
You do what we asked you to do
Or you leave
And your issue will never get resolve

It’s not your work; You do what we asked you to do, or leave… Wow, this looks like a great example of how you should never communicate with your clients.

Twitter communication

As I mentioned above, BiteBTC Twitter blocked Best Coin Investments after we published the article. But as we all know – that cannot stop us from accessing their content. The strange thing is – they are operating like nothing would’ve happened. They’re making airdrop auctions, showing-off that they now have $100M in daily volume, and posting information on newly listed coins. However, every single post has at least one user saying that you should definitely read more about this exchange, and even more users asking for a refund.

But this tweet is just literally something out of this world:

Apparently, their Twitter manager has no idea that there isn’t such thing as a February 30.

Go check it out yourself. You will soon discover not to do any business with this exchange because of the bad reviews. Lots and lots of users are advising not to use this exchange.

Fraudulent token listing

While regular users are waiting for their refunds, BiteBTC successfully operates in listing new coins. However, there are claims of some ICO projects that BiteBTC has collected the listing fee, but somehow failed to pass the exchange’s verification process. Needless to say that they also haven’t received a refund.

“Dear Globycoin Team,
Thank you for your response!
We’ve received your payment and forwarded your request to our developers.
Your coin will be listed within 5 business days because of a queue.
I will inform you in 24 hours about your listing.
Additionally, we can list your coin within 24 hours for additional 0.1 btc Premium Listing fee or within 48 hours for additional 0.05 btc Express Listing fee.
Additionally, I would like to offer you to run Airdrop to attract more traders to your coin.
Please check some of our previous campaigns:
https://twitter.com/bitebtccom/status/983671610594025473– 1K participants in less than 2 days;
https://twitter.com/bitebtccom/status/994578155926106112– 400 participants in less than 12 hours.
I’ll be glad to offer you special conditions and run your airdrop within 1 week.
Thank you for being a part of BiteBTC community!”

– Response to Globycoin

So it looks like they are mainly living off of ICO listing fees. Also, Best Coin Investments is not the only one who got blocked by them on Twitter.

“We Team EGEM paid the listing fee and got “listed” but none of our coin holders could trade. When I asked Steven (the sales rep) about this he offered to sell me “Market Making services” – how is that for a scam.
We complained on their twitter and alerted the other coins that were paying the listing fees and got blocked”

Conclusion

From our perspective, this looks like a 100% scam. The communication with users is beyond any criticism. They claim that they have started coin redistribution, but somehow, nobody has received it.

If anyone from BiteBTC.com wants to back up these claims, please contact us at info@bestcoininvestments.com!

Some users claim that the owners are arrested in Singapore, but that is unofficial. However, that might be the reason for deleting the trade history of all the users. Also, they moved their company to Seychelles, which is very strange.

What is even more shocking, not mentioning the “You do what we asked you to do or you leave” comment, is that one of the solutions that they provide their users is registering again and trading with no initial balance. “You can open a new trader account, pass the KYC verification with the same photo id and start trading with no initial balance.”

Bitcointalk.org users claim that they have not received any refunds as BiteBTC.com claims.

Also, users from bitcointalk are submitting requests to CoinMarketCap to delist the exchange, in order to stop them.

This is unbelievable how an exchange with this kind of reputation can still manage to operate. It could be that all those accounts which are engaging with them are fake, just to make the exchange seem live. Hosting airdrops just for twitter engagement seems odd as well. We all know that the air-drop hunters don’t care what, who or where, “just gimme the damn coins”. But a new low for the cryptocurrency exchange business would be the combo of scamming users and ICOs as well. It looks like they feel so infamous at this point.

Needless to say that people are engaging with the police to stop this madness.


Links to previous articles about BiteBTC
Is BiteBTC a scam exchange?
Proof-of-keys: The exchanges that failed

We also did an article on how to choose the best exchange for trading, giving a few examples of good exchanges:
How to choose the best crypto trading exchange!

Moreover, we recently did an explanatory article on how to report scammy exchanges:
7 Ways How to Report a Scam Exchange


Update:
We received an e-mail from one of the BiteBTC customers who also suffers from the exchange. He told us that only 3 days ago the exchange stole 0.45 BTC from him. Their excuse is that he had violated the terms and conditions. However, the user says he didn’t violate any rules, they just blocked him! He cannot access his account and judging by the e-mail he received from BiteBTC, this is their final decision.
This is the e-mail he received:


If you are a victim of BiteBTC or have some useful information about this particular subject, contact us at info@bestcoininvestments.com, or send an e-mail to a group of people who share the same negative experience with BiteBTC at bitebtcfraud@gmail.com.

Source:

https://bitcointalk.org/index.php?topic=4612714.720
https://imgur.com/a/t2LiFe1
https://imgur.com/czyOcMI
https://www.cryptoinfowatch.com/bitebtc-when-scammers-run-a-crypto-exchange/

How to Choose the Best Crypto Trading Exchange

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At the moment cryptocurrencies are mostly used for speculation and trading. As you might already know, there is always a need for third-party interference to conduct trading operations. Exchange or a broker usually does the job as long as it is not an over-the-counter market. It is very important to choose the right exchange due to many scams, fraud, hacks, and poor performance exchanges. This article will explain to you how to choose the right exchange and will give you some of the best examples.

Is the exchange safe?

Before choosing any crypto exchange the most important thing is to understand whether or not the exchange is safe. Your funds can get stolen by hackers or scammed by fraudulent exchange owners. It is fundamentally important to choose a crypto exchange that stores its funds in cold storage so it is close to impossible for hackers to move large amounts out of the exchange. See picture of largest cryptocurrency exchange hacks below. You should also remember that funds stored on a self-owned hardware wallet is always safer than storing your funds on an exchange.


Crypto exchange hacks by size. Source: Insider PRO

What trading instruments is the exchange offering?

If you are willing to trade the mayor cryptocurrency pairs, then by this criteria almost every exchange will be suitable for you.  When it comes to mid and low cap altcoins you have to seek for specific exchanges. Also, you must check if the exchange is offering real cryptocurrency trading or derivative trading. Derivative markets usually come with bigger leverage and liquidity but their price usually does not reflect real bitcoin price and often makes different, not synchronized price moves.  

Other exchange specifics

A Very important thing to look for is trading volume and liquidity. For every trade you make, you want to be sure that there is another party willing to do the opposite trade. If the exchange does not have any liquidity you might be left with 10000000 dogecoins that you can not liquidate and tell everyone that you are a “Millionaire”. Usually larger the trading volume is the better. The issue that goes hand by hand with trading volume, is trading platform speed. Some platforms are perfect and run without any ease in moments of huge trading volume, some are just slow and clunky and takes you 5 minutes just to confirm a trade. Coughs *Kraken* Coughs. So it is just reasonable to choose the best volume/performance ratio exchange.

List of most popular exchanges

How to start trading in these exchanges?

You can start your crypto journey by registering and depositing funds in one of these exchanges:

BitMEX is a centralized next-generation crypto-coin trading platform, which supports highly leveraged trading via perpetual and fixed-date contracts. To start trading with BitMEX, click HERE.

HitBTC is centralized and it claims it is the world’s most advanced cryptocurrency exchange. Since 2013, HitBTC has been providing markets for Bitcoin, Ethereum, Litecoin, Dogecoin, Monero, USDT, and more than 300 cryptocurrencies in total. To start trading with HitBTC, click HERE.

Binance or Binary Finance is currently the world’s second largest cryptocurrency exchange, with around $6 billion in assets traded in an average seven day period. To start trading with Binance, click HERE.

Kraken, a centralized US-based cryptocurrency exchange operating in Canada, the EU, Japan, and the US, and “the world’s largest bitcoin exchange in euro volume and liquidity”. Kraken provides Bitcoin pricing to the Bloomberg Terminal. To start trading with Kraken, click HERE.

Bittrex is a secure, reliable, centralized and advanced digital asset trading platform developed for international customers and built on Bittrex’s cutting-edge technology. To start trading on Bittrex click HERE.

Kucoin is a centralized cryptocurrency exchange located in Hong Kong. It currently has 178 coins and 398 trading pairs. The most active trading pair on KuCoin exchange is META/ETH. KuCoin is live since 2014. To start trading with Kucoin, click HERE.

Photo by: goodfreephotos.com