Exchange platform FCoin has been openly labeled as a scam website, with a growing number of Reddit user making accusations of bot trading and currency manipulation. The exchange was called out after accusations declaring it was clogging the Ethereum Network, driving up the price of GAS.
Itcisking on Reddit is the user who has made the accusations, making claims that while trading on the exchange, he/she noticed suspicious activity was occurring. There was clear evidence of wild level of bottling that was observed by the user who traded Tether and FCoin.
The user also said that nearly $6 Billion in transactions was completed by bot traders, that can easily accomplish such feats in a mere 24 hours. The short transactions times is only relating to the two pairs spoke of earlier. Because of this, the size can range anywhere from 5 to 20 exchanges at a high-speed rate, all conducted at one time.
Itciscking said for the ability to keep so much FT in one place, the price is manipulated at a constant basis. The current price makes it nearly impossible to purchase enough FT to gain daily rewards that outweigh the risk.
The idea put in place by the user was regarding the intentional behavior designed to end supplies for new users, then mixed with pressure to shake the holders, thereby controlling the price.
The Reddit user also said that making communication with volunteers or staff from the exchange is tough, but at the same time, they make no claims to deny the accusations of being a scam. Some of them even admitted openly to bottling issues that stated price manipulation is very possible on the exchange.
Itcisking ended by speaking about the United State’s problem with price manipulation, misleading new investors. Basically, this is fraud, and parties who suffer because of the damage caused by it are now taking class action.
They are currently looking for a team of legal advisors to represent them against FCoin. They’re also actively looking for anyone who has ever traded FCoin and can prove it. Another user went on to talk about how exchanges like this should be called scams early on, then be removed from CMC, LiveCoinWatch, Etc.
These sites should think twice about who they place on their websites, doing more research into them. IMHO should apologize at the very least. Even more, they should potentially be tried for the part they played with BitConnect’s scam, taking more responsibility for the problems they’ve caused and people they’ve hurt.