The Cryptopia CRUSH
Cryptopia is arguably one of the most prominent cryptocurrency scams of this decade. The losses sustained on account of this crypto scam make it worthy of note. One to pick lessons from against future occurrences of such scam schemes to come.
Many cryptocurrency scams have peaked the news to ploy people into the loss of their crypto assets. From the onset, the platform was a disaster. We can note many similar crypto scams. The Bitcoin rush scam of South Africa for example. This one fits in this category. The same trend can be noticed for virtually all crypto scams of this age.
However, the Cryptopia scam was just a victim of the unfortunate ploy of hackers who stole the assets of crypto traders on this platform. This crypto scam is one that resulted from inefficient security. Along with poor provisions to the funds and algorithm of a trading platform.
Before it folded up, this crypto trading platform had as many as 1.4 million registered users, and their assets were in the millions.
The path to the folding up of the Cryptopia platform started subtly, and it was almost unnoticeable for the average user of its platform.
The Cryptopia scam held close to sixteen million dollars worth of Cryptocurrencies. Victims were worldwide being held ransom on Cryptopia. The management of Cryptopia is currently under investigation. They have agreed to cooperate with the authorities to sort out this scam.
It is almost impossible to string on the hope that traders will get their funds back. Many other crypto platforms have witnessed similar hacks. Some larger, some smaller. Like Cryptopia many never got back on their feet.
THE CRYPTOPIA EXCHANGE
Cryptopia held a lot of crypto assets in its heyday. The Cryptopia platform began operations in 2014. It had risen the ladders of both value and popularity. Becoming one of the most famous New Zealand crypto exchanges. You can still see posts to this day of many past users who praised them. Right before the collapse, see this Reddit post: “Cryptopia is a Scam”
The exchange platform launched a new Cryptocurrency asset in 2017, one which was supposed to be pegged to the value of the New Zealand Dollar (NZD).
Launching the new cryptocurrency asset in 2017 called (NZDT) New Zealand Dollar Token. Cryptopia’s invented crypto-asset brought this platform to the limelight. In a matter of a few years, the user base of the Cryptopia platform shot up in multiples.
As a matter of fact, at some point in the time of Cryptopia, this exchange platform stopped taking trades. Crypto removed certain crypto assets to focus on the active trade execution of its other assets.
Looking at Cryptopia we can see this was a few friends trying to start a home business. It was an idea that got out of hand. Later falling into the hands of scammers who hacked its platform. Making away with a large sum of crypto tokens. Thought to be in the realm of about twenty-four million dollars (USD 24,000,000).
The logo of the Cryptopia Crypto exchange depicted simplicity and was quite easy for traders using its platform to recognize. No one would have suspected any foul play around this exchange platform based on the look of its logo or even its platform.
THE CRYPTOPIA TRADING BOT
Aside from the fact that Cryptopia offered exchange services in its own locally developed Cryptocurrency (NZDT). Cryptopia also provides other trading services in the Cryptocurrency market. This Crypto exchange platform’s services were boutique in nature.
In the bid to make trading a more convenient experience for traders on its platform. Cryptopia created a trading bot section that would help its traders execute algo trades. The guidelines for the operation of the Cryptopia trading bot were those set by the trader. The terms and guidelines the traders used could vary greatly. It was an attractive feature of Cryptopia. The users like it a great deal.
On the other hand, some would have suspected that this trading bot was a scheme. One by which the NZDT inventors were out to rob people of their funds. Before this, traders on its platform at the time of its operation had no scam-related issues. Nothing registered any such activity on their accounts. More so, the use of this trading bot on Cryptopia accounts was free of any charge.
The operation of the Cryptopia exchange trading bot gave a lot of the Cryptopia exchange platform users flexibility. The user could choose from a wide range of trading styles. Without even having to sit and monitor trade orders. This made a lot of people love the operation of its platform.
CRYPTOPIA MOBILE
The Cryptopia crypto exchange also had the option of a mobile operation at the time of its service. A nice feature was Cryptopia being available on mobile. This made for easy viewing on your phone or tablet. The availability of a mobile trading option shot the user base of Cryptopia up in no small figures.
The hassle of constructing a Crypto exchange platform to conform both with a desktop and a mobile device is no small feat. No preplanned crypto scam would spend the time creating such. Once again showing they were more incompetent than scammy.
Although a lot of people have lost their tokens to the Cryptopia scam. The investment that was put into it’s design. Along with the smooth operation of this platform. Suggests that it’s not one that was meant to be a scam from the onset.
THE CRYPTOPIA TRADE PROCESS
Trading on the Cryptopia platform like most other credible Crypto exchanges involves a registration process. The KYC process confirms the identity of prospective traders. This is to keep bots and fraudsters out of its systems and trade environment.
At some point in the time when Cryptopia was still functioning. The platform was ranked the 90th Crypto exchange in the world. This Crypto exchange platform allowed traders to engage in P2P (Peer-to-Peer) trade orders.
The design was to eradicate the role of a third party in investment trade actions. The Cryptopia platform had a marketplace as well. This allowed traders to place their Crypto assets on sale. Kind of an internal marketplace for direct transactions between traders.
The Cryptopia marketplace was the apt place to buy Cryptocurrencies at the time when it was still functioning.
Another thing that distinguished the Cryptopia exchange platform was the low fees. They charged one of the lowest fees in the Crypto exchange market.
THE CRYPTOPIA SCAM: THE WORK OF INSIDERS?
Many have speculated that the Cryptopia scam is the work of the administrators of this platform. A lot of investigation has gone into the hacking.
With around twenty-four million just going on walkabout and still nobody has a clue. No one has been able to ascertain that the administrators of this platform were the ones responsible.
In finance, there is no lack of such fraud as seen even by some of the biggest guys such as: Silver Manipulation by JP Morgan of which we highlight the board white collar crime on an everyday basis.
From gathering and piecing up the facts, we can assume the administrator’s incompetence. The cryptopia exchange platform was just a victim of a loophole in the security of its creation.
ALTERNATIVES TO CRYPTOPIA
Cryptopia may not be coming back anytime soon. After the hack, many were looking for an exchange similar to Cryptopia in scope. It was too unique in its features.
If you are a crypto trader seeking features similar to those of Cryptopia, then check below:
- TOP CRYPTOCURRENCY EXCHANGE “NOW AND IN THE FUTURE!”
- TOP 7 CRYPTO AUTO TRADING BOTS FOR MONEY, HAPPINESS & LOVE!
The above will help you combine some of the features no longer available, due to the Cryptopia closure.
THE FUTURE OF CRYPTOPIA TRADERS
From the facts gathered around similar Crypto scams in times past. We find it is highly unlikely that traders will get their funds back from this scammed exchange. However, there have been some Crypto exchange networks that bounced back on the strength of the profits they made in times before their platforms were hacked. Don’t count on that happening here.
The administrators of this platform have promised to find a way to reimburse its traders. Hot air like these fat bloated game playing millennial trash. The creators of this exchange are examples of a lost generation. Their only talent was to be losers F ups that lost people’s money.
In the end, the fat losers below should likely be sued into bankruptcy or imprisoned, but that is solely my opinion.
It is, however, advisable for traders to seek out other proficient Crypto exchange platforms for their trade orders. Some formidable alternatives to Cryptopia have been listed in this article. However, it is up to you to make your choice of exchange. It is also highly advisable that you do proper research on the exchange platform before placing your investments on its platform.
Cryptopia update
The latest developments in the Cryptopia liquidation saga reveal significant progress by the liquidator, Grant Thornton. They’re diligently working through the third stage of the claims process, focusing on verifying and approving user balances. Despite aspirations to advance to the fourth stage—transferring assets—by early 2023, this step has encountered delays. Challenges such as Cryptopia’s subpar record-keeping and the intricacies of its global operations are being navigated.
Frequently Asked Questions
Grant Thornton, the liquidator, is knee-deep in stage three of the claims process, focusing on verifying user balances. They’re gearing up for the asset transfer phase but are hitting some snags due to Cryptopia’s messy record-keeping and the global scale of the exchange.
The transition to asset transfer is tricky. Cryptopia left behind a tangled web of records, and juggling a worldwide user base isn’t helping. These hurdles are slowing down the process more than anticipated.
The primary focus of the liquidation process is to secure and eventually return users’ funds. The liquidators are meticulously working through the complexities to ensure a fair distribution.
