CryptoXchanger – EXCC ICO Decentralized Cryptocurrency Exchange?
CryptoXchanger.net promises to help you exchange cryptocurrency at the best rate. Find out how it works today in our review.
What is CryptoXchanger?
CryptoXchanger is an online platform that lets you transfer funds from one wallet to another within seconds. The platform promises to provide the best exchange rates in the crypto industry. They describe themselves as a “modern altcoin exchanger.”
There are two websites called CryptoXchanger online, including CryptoXchanger.net and CryptoXchanger.io. Both offer crypto exchange services. Today, however, we’re talking about CryptoXchanger.net.
The reason people are talking about CryptoXchanger.net today is because the platform recently announced its ICO. The company is selling 6 million coins, describing it as an “investment opportunity.”
As part of the new ICO, CryptoXchanger is also launching a lending platform. That’s where things start looking shady for CryptoXchanger, and it’s the reason why some are calling it a scam: the company claims to pay users up to 51% ROI per month when participating in the lending scheme, with a lockup period of 150 days. Obviously, notorious scams like Bitconnect have used similar systems to lure in gullible investors in the past.
With that in mind, let’s take a look at how CryptoXchanger works.
How Does CryptoXchanger Work?
The core service offered by CryptoXchanger is its exchange. The company allows you to swap money between altcoins at a competitive rate.
How does CryptoXchanger offer such competitive rates? The company claims to have an algorithm that checks all online exchanges, then picks the best price from those exchanges.
The algorithm also performs a technical analysis to determine whether the coin is trending up or down. If the coin is trending down, the bot sends coins to the customer from its resources, then puts used currency into a monitor, checking when that currency reaches it bottom. Once the algorithm calculates that the trend might move up, the bot purchases the currency and adds it to its resources.
In this situation, CryptoXchanger earns twice: they earn on the price difference of the coin and on the 0.5% transaction fee.
All coins obtained from these transactions are kept on the CryptoXchanger platform, “continually increasing our supplies,” explains the official website.
In a different situation, a currency might be in an upward trend. In that case, the bot purchases the currency immediately from an external exchange, then sends it to the customer. The algorithm calculates the probability at the same time, deciding if it’s profitable to buy more of this currency and sell it for a profit.
Overall, the company claims that its bot “is set up to earn small profits of between 2%-5%.” The company claims to make these trades several times per day, which adds up to several thousand percent returns every year.
Obviously, this is just a long-winded way of saying that CryptoXchanger has a cryptocurrency trading robot. That robot buys low and sells high. The bot claims to consistently generate strong profits, leading to daily returns of 2% to 5%.
CryptoXchanger Lending Scheme
As part of its new EXCC ICO, CryptoXchanger has creating a lending scheme. Lending is available in EXCC, and participants receive daily accruals in EXCC.
Using this lending scheme, you can earn 51% returns per month (!) according to the official website. All you need to do is let the company hold onto your EXCC for 100 days or more, and you’ll be able to triple your money.
There are three different lending programs in place, depending on how much money you’re willing to give the company:
- Investments Between 50 and 1000 EXCC: 39% returns per month, capital returned after 150 days
- Investments Between 1001 and 10,000 EXCC: 45% returns per month, capital returns after 125 days
- Investments Above 10,000 EXCC: 51% returns per month, capital returns after 100 days
CryptoXchanger is careful to state that all of the ROIs listed above are “up to”. So you can earn “up to” 51% ROI per month. However, they don’t explain what the average ROI is expected to be, or how much investors can realistically expect to make.
Ultimately, when someone promises to pay you 51% interest to borrow your money for a month, it means you’re probably being scammed. Very few people are willing to pay an APR of 600% or more on a loan. Even the payday loan industry doesn’t charge rates nearly that high.
CryptoXchanger advertises all of the following features across its platform and lending scheme:
Decentralization: CryptoXchanger doesn’t keep data on a central server, but shares data among all users.
Safety: CryptoXchanger claims that they allow users to hold the private keys to their coins at all times, similar to how other decentralized exchanges work.
Anonymity: There’s no need to register. All you need is client software and a wallet address.
P2P: All transactions are person to person, and there are no third parties involved.
Security: CryptoXchanger has a multi-signature gateway that protects the network from unauthorized transactions.
Cross-chain Transactions: CryptoXchanger’s whitepaper advertises this as a feature, although it doesn’t appear to have been added to the platform. The company’s whitepaper writes that “we know it is possible” because other exchanges have added it.
Small Transaction Fees: CryptoXchanger will have a transaction fee of 0.1%.
The CryptoXchanger ICO
CryptoXchanger is launching an ICO for its ExchangeCoin, or EXCC. The only apparent purpose of the EXCC is to participate in the lending scheme listed above. Initially, the coin will not be listed on any exchange or third party platform. A web wallet will only be available within the lending scheme’s website.
By March 2018, the company plans to get their coin listed on Coinmarketcap, open trading on third party exchanges, and launch wallets for Windows, Mac OS, and Linux.
The company has set a price of 1 EXCC = $1 USD during the token sale.
There’s a total supply of 32 million coins. 8 million coins have been pre-mined, with remaining coins available through PoW mining. 6 million EXCC are being issued during the ICO period, with another 2 million reserved for bonuses. The full remaining 24 million coins are available for mining, and the company doesn’t claim to have kept any coins for itself.
CryptoXchanger advertises itself as an altcoin exchange where users can get the best rates on cryptocurrency swaps. However, the main purpose of the website appears to be to encourage users to participate in the lending scheme, where you stake EXCC tokens in exchange for returns of up to 51% per month. You cannot withdraw your initial investment for at least 100 days.
Ultimately, CryptoXchanger may be a legitimate lending scheme. However, the platform seems to have an uncomfortable number of things in common with other notorious cryptocurrency scams like Bitconnect. When someone is advertising returns of 51% per month, that may mean you’re being scammed.
CryptoXchanger also claims to have a mysterious trading bot that makes trades with returns of 2% to 5% multiple times per day.
In any case, you can learn more about CryptoXchanger online today by visiting CryptoXchanger.net.