FCoin exchange has been called out as a scam, with a building community on Reddit claiming accusations of bot trading and price manipulation. This comes after the exchange was accused of clogging the Ethereum [ETH] network and driving up GAS prices.
The accusations come from user ‘ltcisking’ on Reddit, who claims to have traded on the exchange and noticed suspicious activity. Clear evidence of ‘rampant levels of botting’ was observed by the user on the FCoin [FT]-USD Tether [USDT] trading pair.
The user stated that $6 billion in transactions conducted by bots can be easily completed in 24 hours on just the aforementioned pair, due to orders the size of anywhere from 5 to 20 being conducted at a high speed.
“Further, to ensure the ability to maintain as much FT as possible, the price of FT is constantly manipulated by the bots. At its current price, it is impossible to acquire enough FT to gain enough daily rewards to offset risk.”
The theory presented by the user is that this behavior is intentional to take away supply from new entrants, which is then combined with downward pressure to rattle holders and control the price.
ltcisking went on to say that communication was made with the exchange, the exchange staff and volunteers making ‘no attempts to deny accusations’. Reportedly, some of these individuals admitted to botting issues and have said that the exchange has the potential to be behind price manipulation.
The user ended the post by saying:
“In the US, the manipulation of asset prices and misleading investors is considered fraud, and damaged parties are able to seek compensatory damages through class action…As of now, I have started looking for a legal team to work to file a suit against FCoin. If you have ever traded fcoin, and have proof, please contact me.”
User ethswagholder on Reddit said:
“Such exchanges should simply be labelled as a scam and removed from CMC, Livecoinwatch etc. CMC should really think about what they are doing and the position of relevance they occupy. IMHO they should at least apologize if not be tried for their role in the bitconnect scam, BCC used to take a prime share advertising on CMC and no doubt CMC made bank from bitconnect. Even forgetting that they should be more responsible and exclude such scammy exchanges and sites.”
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