No one doubts the importance of exchanges to the adoption of cryptocurrencies by the masses. There also have been worries due to the number of frauds perpetrated in the cryptocurrency sphere due to the absence of holistic regulation. This is why we have scam exchanges set up to defraud users as we shall see with Earnsbit.
The FCA, the British financial watchdog recently released its findings which stated that investors lost $34 million to scams between 2018 and 2019. In comparison with previous year, that was a modest figure. This means that at the peak of the price surge of cryptocurrencies in 2017, there were more losses.
This is the reason why the report admonished investors saying:
“Scammers can be very convincing so always do your own research into any firm you are considering investing with, to make sure that they are the real deal.”
That is exactly what we try to do at Cryptoinfowatch – help investors identify crypto scams so that they make informed decisions and avoid becoming victims of these scams.
What is EarnsBit?
This is a cryptocurrency exchange that claims that it would give investors a unique trading experience. The platform which also claimed that it is based on blockchain stated that it provides a multi-coin trading platform requiring zero transaction fees.
It went further to claim that it gives users access to fast transactions while securing their assets by storing the bulk of the deposits on cold wallets. It claimed that 97 percent of all its holdings are kept offline. Apparently in a bid to impress the potential investor, it claimed that its 24 hours, 7 days a week support attends to customers’ queries promptly.
Even though it claimed to be an exchange with user oriented platform, there are signs that show that there is more to this exchange. So you are encouraged to read through the rest of this post before doing business with it.
What Problems Does it Solve?
A new project should prove that it is bringing something new which similar projects have overlooked. For instance, Monero brought enhanced privacy features which are not found in Bitcoin.
The EarnsBit exchange claimed that it is concerned with the high transaction fees and commission charged by other exchanges. According to the whitepaper, 0.13 percent is not acceptable to the team. So they built a platform that makes it easy for the users to access features and also transact at minimal cost.
It also highlighted issues such as making their exchange social by allowing users to interact with one another. Even though one of its concerns is the effect of de-listing of coins, the whitepaper did not proffer a solution to this.
Other features which the exchange claims puts it ahead is the support for many languages which they claim is something lacking in the ecosystem and customer support.
If you’re conversant with the crypto industry, especially with respect to the exchange business, you would agree with me that the EarnsBit whitepaper has not proffered a remarkable solution to a problem in the industry.
This means that the team behind this project was just making effort to impress potential investors with words that bear little substance as far as cryptocurrency exchanges are concerned.
Why You Must Not trust EarnsBit
The EarnsBit whitepaper claims that the exchange has a withdrawal fee of 0.0005BTC, claiming that this fee would get lower in future. This is by no means an extraordinarily low fee since there are many other exchanges that charge such fee.
It has a minimum withdrawal of 0.002BTC. The reality is that there are many exchanges that have no minimum withdrawal. The impression you’d come away with while analyzing the activities of this exchange is that they are eager to keep the investors funds to increase exchange liquidity.
Who is Behind This Exchange?
There are strong indications that the EarnsBit team uses faked IDs. This is the most obvious pointer that this is a scam project. Even though the team has been removed from the site, you can still find them in the whitepaper. A close examination should tell you that you are dealing with a fraudulent project as we shall examine shortly.
Presently, there are five team members, but none of them was linked to an active social media profile. When crypto projects are that dodgy, you would be nearly sure that there is something questionable about it.
Also, the photos of the team members were photoshopped. If they have nothing to hide, they would have used real verifiable photos instead of doctored ones. You can see where they got the image of the CEO, Wong from, thanks to BTT’s Morvillz7z.
Furthermore, the images used in the doctored images of the team members were stock photos taken from the internet. Stealing people’s images for a project means that the owners of EarnsBit have ulterior motives and wouldn’t want their true identities to be known. In fact, their intention must be to steal people’s funds.
Our investigations show that the team was linked to LinkedIn profiles before the links were taken down. But archived versions show that the LinkedIn profiles have no pictures of real people. Obviously, they removed them to avoid answering too many questions or raising more suspicion over the project.
You can see from the removed LinkedIn profile of the CEO that there is no photo image. Do you wonder why the owner of an exchange soliciting for funds from investors wouldn’t want his real identity to be known?
A closer look at the name faces in the images shows they’re Americans, yet interestingly, all the names are Asian.
An Active Scam
This is a clear example why you must not send funds to a random exchange. If it is unknown, new, with no reputation and not backed by individuals with credibility, investing in such exchanges is a sure way to lose your funds.
Fraudsters routinely steal from investors, but when they set up exchanges, the losses could be massive because there are investors who would be deceived into sending a lot of funds to the exchange. This would result in losses.
Even though we have classified EarnsBit an active scam, they have no way of stealing your funds unless you sent it to them. This is why it is important that you conduct appropriate research before investing with any exchange.
It would save you a lot of heartache if you make it a habit of avoiding new and unknown exchanges. If you must invest you cryptocurrencies, use exchanges that are reputable.
At Cryptoinfowatch, we encourage people to use our top recommendation where you could grow your assets with the aid of social trading mechanisms. This is far better than risking your funds with unregulated and random exchanges.
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