THE CRYPTOPIA SCAM
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 one worthy of note and one to pick lessons from against future occurrences of such scam schemes.
Although, unlike many Crypto scam schemes, the signs signify that Cryptopia was initially not intended to be a scam scheme. This Crypto platform was on the rise and moved gradually up the ladders before it came crashing down. Their schemers designed many cryptocurrency scams that have peaked the news to ploy people into the loss of their crypto assets from the onset. The Bitcoin rush scam of South Africa for example, is one that 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 an inefficient security provision to the funds and algorithm of a trading platform.
Before its fold 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 holds close to sixteen million dollars’ worth of Cryptocurrencies of traders on its platform at ransom. However, the management of Cryptopia is currently under investigation and has agreed to cooperate with the authorities to sort this scam. However, it is almost impossible to string on the hope that traders will get their funds back from this scam. Many other crypto platforms that have witnessed similar hacks never got back on their feet.
THE CRYPTOPIA EXCHANGE
Cryptopia is a Cryptocurrency exchange network that offered services in a lot of Crypto assets in its active days. The Cryptopia platform began operations in 2014 and has since risen the ladders of both value and popularity to become of the most famous New Zealand exchanges. You can still see posts to this day of many past users who praise them before the collapse, see this reddit post: “Cryptopia is a Scam”
The Cryptopia exchange platform launched a new Cryptocurrency asset in 2017, one which was supposed to be pegged to the value of the New Zealand Dollars (NZD). New Zealand Dollar Token (NZDT); the Cryptopia invented crypto-asset brought this platform to the limelight, and 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 in some Crypto assets to focus on the active trade execution of its other assets.
From all forms of indications, Cryptopia was not set out to be a Crypto scam platform. It, however, fell into the hands of scammers who hacked its platform and made away with Crypto tokens, which, when summed up, values up to about sixteen million dollars (USD 16,000,000).
The logo of the Cryptopia Crypto exchange was one that 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
Asides the fact that Cryptopia offered exchange services in its own locally developed Cryptocurrency (NZDT), it also provided trading services in the Cryptocurrency market. This Crypto exchange platform’s services were just the ones to fit the portfolio of a credible crypto exchange platform.
In the bid to make trading a more convenient experience for traders on its platform, Cryptopia created a trading bot that would help its traders execute trade orders on a set of trade guidelines. The guidelines for the operation of the Cryptopia trading bot were those set by the trader. However, much profit the trader made was dependent on the trading terms set by the trader for the bot. The trading bot was guided entirely by the set of parameters set by the trader to oversee its operation.
Some would have suspected that this trading bot was a scheme by the NZDT inventors to rob people of their funds. Traders on its platform at the time of its operation had no scam related issues to the activity of the bot on their accounts. More so, the use of this trading bot on Cryptopia accounts was free of any charge. The fact that the operation of the Cryptopia trading bot was free made it one that allowed traders to troop into its platform like water runs down the height of a waterfall.
The operation of the Cryptopia trading bot gave a lot of the Cryptopia exchange platform users the flexibility to choose from a wide range of trading styles without even having to sit and monitor trade orders, and this made a lot of people love the operation of its platform.
The Cryptopia Crypto exchange also had the option of a mobile operation at the time of its service. The fact that Cryptopia was available on mobile made this Crypto exchange platform a better option for traders who desired to execute and monitor their trade orders on the go. 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 one, and many preplanned Crypto scams do not take time to put a mobile interface in place.
Although a lot of people have lost their tokens to the Cryptopia scam, the investment that was put into designing 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 that would confirm the identity of prospective traders to keep bots and fraudsters out of its systems and trade environment.
At some point in the time when Cryptopia was still functioning, it was ranked the 90th Crypto exchange platform in the world. This Crypto exchange platform allows traders to engage in P2P (Peer-to-Peer) trade orders, which eradicate the role of a third-party to investment trade actions. The Cryptopia platform had a market place that allowed traders to place their Crypto assets on sale as well as buy from other advertising traders.
The Cryptopia market place was the apt place to buy Cryptocurrencies at the time when it was still functioning. Another thing that distinguished the Cryptopia exchange platform is that it 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 that took away with it tokens worth sixteen million dollars on this exchange platform, but no one has been able to ascertain that the administrators of this platform were the ones responsible for this fraudulent activity. In finance there is no lack of such fraud as seen even by some of the biggest guys such as: https://smartoptions.io/jp-morgans-silver-manipulation-will-they-finally-put-them-in-jail/ of which we highlight across the board white collar crime on an everyday basis.
From gathering and piecing up the fact, we can assume the administrators of this exchange platform were just victims of a loophole in the security of their invention.
ALTERNATIVES TO CRYPTOPIA
Cryptopia may not be coming back anytime soon. After the hack, many were looking for an exchange to buy Bitcoin and other Crypto assets like Cryptopia.
Crypto traders must seek out alternatives for their Crypto trading processes. For traders who seek Crypto exchanges that offer services similar to that of Cryptopia’s, Coinbase and Stex can be considered as preferred options for Crypto trading.
THE FUTURE OF CRYPTOPIA TRADERS
From the facts gathered around similar Crypto scams in times past, it is highly unlikely that traders will get their funds back from a scammed network. 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.
The administrators of this platform have promised to find a way to reimburse its traders.
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 make proper research on the exchange platform before placing your investments on its platform.