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?
Its really disappointing to see things like this happening in the crypto world because not only does it limit the chance of other startups from breaking even in record time, it brings disrepute to the entire market that anyone can launch and then scam with little or no consequence which is what we don't need in the market at this time.
The motive behind small exchange sites is based on the objectives of the promoters. Agreed that they might have some amount of challenges in terms of liquidity but not enough to then cart away investors fund. Return their money then go back to the drawing board to re-strategize then come back. The reputation would still be intact and this time, enough to spread to the market easily.