Re: Why Minor Crypto Exchange Pulls Off Exit Scam, Steals All User Funds
A small Canada-based crypto exchange called MapleChange and now the Pure Bit from South Korea has pulled off an exit scam, disappearing with user funds all in one month. The disappearance of MapleChange and Pure Bit with user funds has led experts in the sector to encourage crypto investors to prevent the utilization of minor exchanges with no reputation and cold wallets that accurately represent their holdings.
What is the motive behind all these minor exchanges, anyway?
What is the motive behind all these minor exchanges, anyway?
Any business must be profitable and a lot of these smaller exchanges are not getting enough customers to make it sustainable, so they just go the exit scam route to recover their losses.
Other sites do this as a long con, because they know the exchange will not succeed, but they do it anyway, because they know they can get a lot of money at the end, if enough people join their service. They just monitor the deposits and when enough people deposit a large amount of money, they cut their losses and run.
