Initial Coin Offerings Scam: Tradetex Poised to Steal Your Money

initial coin offerings scam

Initial coin offerings scam is so common these days that there is no week we do not get information of new scams in the cryptosphere.

Tradetex which launched its ICO this month has been declared a scam by Cryptoinfowatch. This review will give you details of the factors that have been analyzed in declaring this project a scam.

Scammers Are More Daring With ICOs

Scammers are actually recycling their scams through new innovative ideas. Some are actually running a number of scam ICOs concurrently so that their chances of success through these scams may be high.

Investigative reviews are the only path by which scams are discovered and busted. Nevertheless, many investors put in money into projects based on publicity and not based on research.

One thing every investor should have at the back of their minds is that the way they are planning to make profit from investments is how scammers are thinking of ways to steal the same money they’re planning to invest.

This is the reason why people are advised to ask questions and do some research before buying any tokens or participate in initial coin offerings.

What is Tradetex?

ICO scammers have learned what I call the magic wand of the industry. These are words that all initial coin offerings scam will infuse in websites and whitepapers to go with the flow of the ecosystem.

Words such as blockchain, decentralization, distributed ledger technology and disruptive technology have all become the hallmark of the industry.

Scammers have learnt to use these effectively, perhaps more than honest teams launching initial coin offerings.

initial coin offerings scam

A look at the Tradetex website and whitepaper shows that the promoters of the scheme are well versed in these terms as Tradetex was described on its website as:

 “A commission-free exchange with its own native cryptocurrency, the TDX token. Tradetex is a wallet, exchange created to simplify all operations and make them more convenient for all crypto currency conversions. TradeTEX is a zero commission crypto currency exchange with decentralized account balances that governs itself autonomously.”

This is apparently a well-thought out scheme to attract investors to get their money and eventually leave them with nothing. It is a known fact that a commission free exchange will lure in traders and investors since people generally like free things.

A further look at the website will show some bogus claims that a less cursory perusal will show that they are not as simple to build as the project made it out to seem.

Cryptoinfowatch investigates and lists ICO scams

Experience has shown that most investors and many others in the crypto industry believe that anything is possible as long as blockchain has been mentioned. This is why I call it the magic wand of crypto which has made millions for scammers.

Now look at this quote from the scam website,

“TradeTex is driven by blockchain technology. Right from the use of its own cryptocurrency to eliminate transaction fees, to storing account balances in a decentralized smart contract and allowing its traders & investors to participate in different investment plan, everything that makes TradeTex revolutionary is only made possible by embracing the disruptive power of new blockchain technology that until very recently didn’t even exist.”

You can see how it smartly is marketing the scam using “blockchain” and “disruptive” all in an effort to make every investor believe that they are unto something big and worthwhile that will eventually make money for everyone involved.

initial coin offerings scamAnother feature of scams is their need to be accepted through the use of adjectives that tend to elicit trust. Scammers without prompting will want to point investors to lines that subtly suggest that they can be relied on.

These are meant to reduce the suspicion that you are about to lose your money as seen with this sentence on the Tradetex website,

“Therefore, traders must own TDX tokens to trade on TradeTex commission-free, trustworthy exchange, which creates demand for the TDX token.”

Another effort at convincing you that they are legitimate, trustworthy and that you run zero risk is a feature of scams. There is no investment with zero risk but this scam is apparently stating otherwise here:

Secondly, by trading TDX coin and all other Crypto coins with TDX tokens. TradeTEX has come in the market to win people’s trust and faith as people have a lot of concerns regarding new ICOs that if they will buy ICO tokens then their hard earned money will get blocked for quite long time, whether they’ll get good returns or not,”

“What is the future of a new ICO and many more but TradeTex makes it simple and transparent by giving an option of buyback as there is no time bound during initial offering. ICO investors & traders can give their TDX Tokens back to the company at fixed price at phase 2 of token sale”

The claim of transparency and trustworthiness arises from the knowledge that they’re in business to scam people.

There is an urgency to prevent this scam from being another success. Initial coin offerings scam is always better discovered as what they are before they launch their sales.

Who is Behind the Tradetex Scam?

As usual, ICO scammers will never use their real identities, rather they prefer stealing other people’s IDs to project them as teams behind their scam.

However, there are ways to know that these IDs were faked even if they are linked to social media accounts of real people. Most times, these people are not even aware their profiles have been used for scams.

How is Tradetex A Scam?

initial coin offerings scam

One of the sure ways of identifying a scam in the ICO ecosystem is the identities of the entities behind it. If they have in any way altered their identities, you can be sure that whoever is doing the alteration is the brain behind the scam.

For instance, there have been instances whereby a single scammer had hired honest people as team members and used their IDs to launch and ICO.

These people would work hard on the project hoping that they will be paid in the future as the scammer promised. They will wake up the day the scammer steals all the money and disappears.

A closer check will show that the scammer’s identity was not real. Pictures pulled from the internet and names of other people are a common trick by fraudsters in the ICO sphere.

This is why many ICO listing sites are insisting on KYC before listing, but this is not even trustworthy because many sites are more interested in the money they would get than in debarring scammers.

initial coin offerings scam

One of the pictures of the “admin” in the Tradetex website belongs to a LinkedIn user who is not associated with the scam (scammers never use their read profiles). The name of the LinkedIn user is Oliver W. but the scammers behind Tradetex listed him on their website as David Forrer.

initial coin offerings scam

Other team members have no pages linking them on social media. This is a clear indication that this is a fake team.

Another trick employed by ICO fraudsters is using photoshopped photos on profiles. When done effectively, reverse search of these images most times do not yield their sources.


initial coin offerings scam

Tradetex has already launched a crowd sale. This project has been cleverly set up to deceive investors. In an age in which the ecosystem is striving for legitimacy as regulators increasingly seek to stem cryptocurrency fraud. The Tradetex policy towards anonymity is:  

“As an offshore exchange that accepts only TDX tokens, TradeTex is not bound by intrusive, ineffective and pointless KYC/AML regulations that intrude on our users privacy and which put them at risk of identity theft by making the exchange a target for hackers seeking personal information.”

Considering that Tradetex is involved in identity theft by using faked profiles, is it not paradoxical that they mentioned that on the website.

Any investors putting money in this project or purchasing its token can be sure of one thing. Their fund is lost.

This is why we always advise people to conduct appropriate research before investing in any ICOs. For a service we recommend, check here.



Author: Jofor Humani

Jofor is a crypto journalist with passion for investigative review of projects with the aim to determine the authenticity of their claims.

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