There are several crypto-focused services that are outright scams while there are those that it is quite difficult to assess what they are really up to, considering that the reviews about them tend to contradict the experience that people have while using the service. This is what we have noticed about Spectrocoin, the Bitcoin exchange that claims that it is a one-stop solution for users.
What is Spectrocoin?
This is an exchange that supports the buying and selling of 40+ cryptocurrencies. It also boasts of a working conversion of digital assets from one to another as well as a fiat to cryptocurrency swap.
According to the platform,
You can accept BTC or other cryptocurrencies, then exchange to EUR or USD and withdraw to your e-wallet or bank account. As well, you can deposit fiat currency, do the exchange and send cryptocurrency to another address.
Its instant exchange platform supports a variety of payment methods such as bank cards and bank transfers. Its Spectrocoin Pro is a high frequency trading platform for professional traders. Other services available on this exchange are crypto-backed loans and support for merchants to enable them start accepting cryptocurrency in business.
It stated that:
For merchants, SpectroCoin offers a plug-in and a comprehensive API which allows them to accept BTC, DASH and XEM as payment.
Who is Behind Spectrocoin?
Information available on the website shows that the exchange has been operating for 8 years and boasts of over 1 million users and 100 team members.
Information available on the exchange’s website shows that the owner or co-founder is Vytautas Karalevičius. He is said to be in charge of the business development and client experience. According to the site, he “co-founded SpectroCoin with two like-minded friends in 2013.”
It is worthy to note that Vytautas Karalevičius is also behind Bankera, the banking solutions project that raised funds through a controversial ICO in 2018.
The exchange is licensed in Estonia according to this:
SpectroCoin has taken a significant step forward by acquiring two licenses in a country with crypto-friendly regulations.
There are several allegations that the project team never made an attempt to utilize the funds for anything worthwhile. According to a Bitcointalk user, JollyGood, who reacted to a scam allegation against Spectrocoin:
These scammers made millions from the scam ICO yet have still not provided any tangible product, they are simply enjoying their lives living off funds that belong to other people. They did the same thing when they had their ICO with their Bankera scam too.
How Does The Service Work?
There are several reviews about the activities of Spectrocoin exchange. However, it is easy for a new user to be deceived since the platform has many positive reviews. But these reviews may not be trustworthy because the exchange is apparently paying for shilling service to send in fake reviews for them.
There are hundreds of these reviews, however, an experienced investor should search diligently before dealing with Spectrocoin.
What many customers of the exchange have reported is that their funds are seized at the point of withdrawal. Most of the time, they are asked to go through KYC which the company ensures that they do not pass. So they practically take people’s money using a deliberately non-functional KYC system.
What Experiences Have People Reported?
Here are some reviews sent in by users:
A December 17, Trustpilot review by Andrew Y. from Australia stated:
They defrauded me of thousands of dollars. My account was banned for no apparent reason. They’ll collect your money and then throw you out. They want 900,00 euros for some Bankera project before they will give me my cash! These glowing testimonials are made up.
On December 30, Nico from France wrote:
You deposit funds. Then they ask you for impossible receipts that no other exchange asks for. And forbid you to withdraw your funds. Scam. Run away.
Palm from Lituania wrote:
99% scam – they are using $BNK Banker Coin aka Bankera. Bankera scam coin was baked by Antanas Guoga legit scammer.
Would You Trust Spectrocoin With Your Bitcoins?
It is obvious that an exchange that randomly locks the account of users cannot be trusted with your funds. We are also aware that there are many users that do not conduct background checks to ascertain the authenticity of the claims made by some of these crypto exchanges. Here is an example:
On the 6th of February 2020 I bought some btc (not much, about 21 euro worth) using a Qiwy atm.The btc buy’n service is offered by Spectrocoin. I got the message that my deposit is successful. When I tried to withdraw I got an error that I can’t withdraw because I’m not verified.I applied to KYC and carried on with other things but something bothered me about this whole thing so I googled a little about Spectrocoin’s verification. Imagine my jaw dropped when I saw all those negative reviews.
You can see that this fellow already started using the Spectrocoin service before checking reviews about them. This is the wrong approach.
For an exchange that you can trust, check our recommendation.