Cryptolocator – Ethereum Marketplace For Trading Cryptocurrency?
Cryptolocator is a utility website that describes itself as an Ethereum marketplace. Its aim is to act as a “reliable platform” for altcoin trading, to be used in lieu of a cryptocurrency exchange or a similar service.
What Is Cryptolocator?
There’s no specific information on the Cryptolocator website that reveals who’s behind the company. The only clue we have is that a business known as Inalcons Ltd is listed as providing “legal support” for Cryptolocator.
However, researching Inalcons has also proven fruitless. Its LinkedIn profile is bare, revealing only a non-functioning website address and links to two employees, neither of which are available for public viewing. The anonymous CEO is listed as being located in the Russian Federation.
Meanwhile, the site registration info for the Inalcons website provides an incomplete Hong Kong address. However, the domain name registration company is also based in Russia. This makes us feel that Inalcons – and Cryptolocator as well – are likely based within Russia’s borders as well.
Cryptolocator allows users to post, classified advertisement style, on the website whenever someone is willing to buy or sell a certain amount of Ethereum at a specific price. Other users can then browse these offers until they find one that fits their own cryptocurrency needs.
Cryptolocator claims to work as a peer-to-peer website that connects users directly. However, Ethereum transfers do not go directly to a buyer from a seller but instead pass through Cryptolocator’s escrow system. This incurs a transaction fee. However, we were unable to pinpoint any sort of fee schedule.
The opportunity provided by Cryptolocator is to find a suitable amount of Ethereum, at an affordable price, and make a transaction for that cryptocurrency, hopefully at a cost that will be less expensive than it would be to buy or sell the same amount of ETH on an exchange or through a rival service.
However, that’s not the only opportunity at hand. Cryptolocator also has a referral program. Recruiting new members provides affiliates with a 20% commission on all trading fees made on every recruit’s trade for a three-month period. Again, there’s no information on what those trading fees are or how much they might be.
Cryptolocator has a good premise. Providing a service that connects buyers and sellers in a cryptocurrency market is always useful, especially for those who don’t want to place or manage complex buy or sell orders on an exchange. Inclusion of an escrow system is also beneficial, at least on the surface, as it provides a veneer of safety and security.
The addition of a small money-making opportunity – the 20% commission on trade fees made by recruits for 3 months – is a small but notable benefit. This could help to drive widespread adoption of Cryptolocator in the future.
However, we have to stress that there’s simply not enough information about Cryptolocator as a company. With no ownership information provided, Cryptolocator isn’t entirely trustworthy; meanwhile the company that may or may not own it, Inalcons, is just as mysterious and unknown.
Using Cryptolocator to buy or sell your own Ethereum is up to you. However, you do assume the risk that the company may one day go rogue and disappear with all the money it’s got in escrow. If that’s within your acceptable level of risk, you’re welcome to use the service.