The allegations revolve around MEXC’s operation as a broker rather than a legitimate peer-to-peer (P2P) exchange, raising significant red flags in the trading community.
According to a recent source, the heart of this problem is the failure of the MEXC Exchange to transparently disclose its role as a broker while offering a range of listed tokens. Let’s explore more about this important news.
Allegations of Unethical Practices Raise Serious Concerns
Adding to the controversy is MEXC’s aggressive listing of a multitude of new altcoins. While this might appear enticing to traders seeking diverse investment opportunities, it comes at a significant cost.
Many of these altcoins lack real trading volume due to their small and relatively unknown nature. To address this, MEXC is purportedly propping up the market with its own liquidity providers and market makers. This creates the illusion of a robust marketplace for these altcoins.
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The CEO of crypto exchange MEXC has deactivated his X account. A lot of fraud allegations are swirling. pic.twitter.com/i5COOQ3NZg
— Whale | Dinobet.io (@WhaleChart) December 24, 2023
However, the heart of the problem emerges when traders profit from these altcoin trades. Instead of the profit coming from other traders in the order book, it is allegedly directly taken from MEXC itself, including its market makers and liquidity providers.
According to recent info, this unconventional model raises serious ethical and legal concerns, as traders essentially find themselves pitted against the exchange in a zero-sum game where their profits translate to losses for MEXC.
More About MEXC Exchange Practices
This practice may explain the reported freezing and confiscation of accounts under the pretext of ‘abnormal profit.’ The logic behind such actions is that users who make substantial profits are winning trades against MEXC’s market participants. This creates a contentious environment where users risk having their accounts frozen or funds seized if their trading success is deemed ‘abnormal’ by the platform.
Crypto exchange @MEXC_Official has allegedly frozen several traders’ accounts and seized their funds, according to multiple reports on X (formerly Twitter). The exchange claims the actions were motivated by "abnormal trading activities.”https://t.co/uaKexfDKpu pic.twitter.com/hbAaDUX41U
— ICO Drops (@ICODrops) December 24, 2023
The implications of MEXC potentially manipulating the prices of listed assets on its exchange are significant. Such actions could result in a skewed market that does not accurately reflect the true supply and market demands. The use of freezing and stealing tactics, as alleged by some users, raises ethical concerns and questions about the integrity of MEXC as a trustworthy cryptocurrency exchange.
Conclusion
The allegations surrounding MEXC’s practices highlight the need for increased transparency and ethical standards in the cryptocurrency exchange space. Traders and investors should be very careful and do proper prior research before.
Disclaimer
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