PrimeXBT is a crypto exchange that seems to have a good chance of competing favorably in the industry but alas, the exchange seems to have something to hide as we shall see in this post.
With a beautiful website at the domain primexbt.com, the exchange features 100x leverage on digital currencies such as Bitcoin, Ethereum and a dozen others making it a good competitor of some of the popular exchanges.
Deposits Are Usually Instant But Withdrawal…
It claims (not surprisingly) instant bitcoin deposits even though the transaction speed of Bitcoin or that of any other cryptocurrency is not determined by the exchange.
This claim may just be an attempt to push the imagination but is the first hunch that the website is filled with bogus assertions meant to draw the attention of investors to use the site.
A domain registration search show that PrimeXBT was registered on August 28, 2018 so the exchange has been in operation for 6 months. But what attracted a closer scrutiny to the platform is its marketing strategies which adopted some of the unethical approaches.
Staff Poses As Customer
A PrimeXBT staff in an apparent bid to promote the company was noticed at Bitcointalk advertising the exchange while posing as a customer.
In the post, the individual stated that they made $112,000 on marginal trading on PrimeXBT:
“Hey guys! I’ve made $112k on that platform yesterday! Check it out. Anyone has experience with them? How quickly they withdraw funds?”
This post was made after he made another elaborating on the ease with which he made profits on the exchange. After the post, he was accosted with the fact that previous posts showed that he was an insider. For example he posted his company email in an earlier post.
In the post, he wrote in response of queries about PrimeXBT’s ability to handle influx of customers and regarding the exchange’s liquidity:
1. Our company was found by an investment fund and we have enough investments to launch such a marketing campaign
2. We have quite a big front office to deal with support and account of airdrop campaign
3. No, only crypto withdrawals”.
The insider gave his employee email as David@primexbt.com.
No KYC …Really?
The fact that the company is advertising no KYC should be a warning sign because it means that it could be an easy channel to funnel proceeds of crime. Making it that obvious may be a marketing strategy, however it is a pointer that this is one exchange that has no intention of keeping the rules.
How would you want to use an exchange that has made it clear that it is not under any form of regulation? KYC and AML is standard practice for any reliable exchange.
A Shady Giveaway By PrimeXBT
In its quest to attracts users, PrimeXBT announced a $1 million giveaway in which participant were encouraged to refer people to win up to $250,000.
According to the site,
“PrimeXBT is a new platform allowing its users to trade digital currencies … to get early access and benefit from 50% trading fees, invite friends and win generous rewards”.
Participants of the giveaway would later learn that to be paid their winnings requires deposits of equal amount of money they won.
According to the term of service 3.4 seen on the website by Cryptoinfowatch, the company stated,
“To activate your account you must deposit at least 100% equivalent of the prize and complete 20 trades each valued 100x of the amount credited (for example if you won $400 you must deposit $400, complete 20 trades with 100x leverage and then claim and withdraw the prize).”
In reality, that is the approach used by many scam sites to make sure that people do not easily make withdrawals of the profits they made from the site.
This shady approach of PrimeXBT meant that the company could have shadier practices and finding them wasn’t difficult.
A closer look at the giveaway table shows that the top spots were given automatic assurance of deposits while the rest are subject to section 3.4.
It is safe to posit that the exchange managers may conveniently claim the top spots insisting that all participants be made subject to the deposit and trade before reward condition.
Plagiarized Terms of Service?
It is possible that PrimeXBT plagiarized the content of their website from another exchange, BitMEX because it claimed that it was an entity registered in the Republic of Seychelles just like BitMEX.
Interestingly, the company registration number 148707 claimed by PrimeXBT is exactly the same with BitMEX’s and a Cryptoinfowatch investigation shows it wasn’t registered in the country. The original ToS obtained from BitcoinTalk user TheNewAnon135246 shows this:
An exchange that could not create its own content but copied from another website is definitely not reliable. That PrimeXBT is asking for deposits from investors when it is involved in shady practices means that investors’ funds may not be safe with this exchange.
Edited Terms of Service
The company has recently edited its terms of service changing its registration number to 206862 which appeared on another section of the site even when the BitMEX number was used initially.
It is obvious that this was due to the criticism the company received from the community after the probable plagiarism was discovered. Nevertheless, a search of the company name and number shows that it was not registered with the Republic of Seychelles database.
A search for Prime XBT and Prime XBT Trading Services Ltd which are both names claimed by the exchange shows that it was not registered as an entity with the Seychelles government.
Experience has shown that scam artists take advantage of the potentials of cryptocurrencies to steal from people. PrimeXBT.com has all the warning signs that should make investors distrustful of the site.
When you come across an entity laying false claims on its site, you’re likely dealing with a scam. PrimeXBT is clearly an unreliable exchange so investors using it should beware that their funds are at risk.
Fake Twitter Followers
Scams usually create buzz around their sites to give impression that it is a popular site. They are aware that people feel secure in crowds because they feel that if many people approve of such sites that they are genuine.
The PrimeXBT Twitter followers are mainly bots that are shilling the exchange creating the impression that this is a good service.
Shilling activities are meant to create artificial buzz on a project making it seem more popular than it actually is. It is employed by unreliable businesses that have no value for ethics.
There are many exchanges with good reputation. Investing in an exchange carries some risks under normal circumstances but doing so with a suspicious exchange such as PrimeXBT magnifies your risks.
No information on the website is verifiable yet they would later use the data submitted on the site by users. The risk involved in using the exchange is just too high and so not worth it.
This is why we do not commend this exchange. Check a recommendation with lower risk if you must invest your cryptocurrency or other funds.