Some people are growing concerned over the business practices exhibited by the C-Cex exchange. For a platform that has always focused on altcoins rather than direct bitcoin trading, C-Cex has always been considered a second-rate exchange platform. New allegations surfaced on Bitcointalk claiming C-Cex is a scam, as the company allegedly runs fake ICOs and buys their own “coin supply” in the process.
What Is Going On With C-Cex?
It has to be said, the accusations posted on Bitcointalk should not be dismissed that easily. Back in July of 2015, users claimed this exchange was a scam for hosting their own ICOs in an attempt to defraud users and investors. Since no one knows who the real developers are behind most of the new altcoins, it is not unlikely exchange operators create fictitious listings to earn more revenue.
One of the business practices people have been concerned about pertains to these altcoin ICOs. The company’s terms of service stated how C-Cex would “intervene” if sell order prices would fall to below 75% of the ICO price during the initial 5 day fund holding period. Most altcoins attract early investment and get dumped across exchanges shortly afterward. That is the way these – mostly useless – currencies have worked from day one. However, there is no reason for C-Cex to put up a full buy wall for 2 full days at the original ICO price, as that only attracts more people to sell their coins.
Quite a few C-Cex users reported getting banned for calling out the exchange in the platform’s chatbox. It seems evident the moderators don’t want anyone to make their exchange look bad as they try to collect money for currencies that will never see any future development. A very shady tactic that hurts the overall public perception of cryptocurrency. Banning people is an effective way of censoring them, although it is not the only way for them to make their voice be heard.
In August of 2015, C-Cex listed another altcoin ICO on their platform that caused a lot of controversy. The sudden listing of the Ghostly currency had quite a few people stunned, as there is absolutely no reason to list that coin on any exchange. There is no innovation, no roadmap, and no use for another copy-and-paste altcoin that brings nothing new to the table. It comes as no surprise to find out the development of Ghostly was halted briefly after its launch and successful ICO. It remains unclear how much money was raised from investors during the process, though.
Fast forward to today and the scam allegations against C-Cex continue to grow. One user reports how his account saw funds stolen on several occasions. Since the account itself was not compromised by a third party, and the transfers were not initiated by the account owner, there is only one possible reason for funds disappearing. While it may be a stretch to blame this on the C-Cex team, it is not entirely impossible they are actively draining user balances one at a time.
Although all of these claims were sent to us by other C-Cex users, it is evident this exchange has a lot to answer for. So far, their team remains tight lipped regarding these allegations, as they seem to have no interest in defending themselves. While this does not necessarily validate the claims made by the exchange’s series, it also goes to show something is up. Users are advised to tread carefully when using the C-Cex exchange and never store funds longer in their wallets than need be.
If you liked this article, follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin, cryptocurrency, and technology news.