BitMax is considered as one of the favorite exchange of the crypto industry, and investors have been using it as their first choice. However, some investors have been the victim of liquidation in an illiquid market because of margin trading, and they doubt the way BitMax works.
Flash crashes have been a part of the crypto market, and these are common in the market, but there are more severe and darker crimes that take place behind the scenes. Recently, the founder and CEO of crypto data analyst firm Lunar Digital Assets(LDA), Han Yoon accused BitMax and its team of manipulating many IEO projects through pump and dump schemes.
Han believes that the market makers manipulate BitMax’s market as instead of providing liquidity to IEO projects, they buy their tokens and pump up the price. They spend thousands and millions in liquidity funds and then buy the funds which cause the IEO token price to tumble. The victim of one of these scams can be the token of the blockchain-oriented project DeepCloud AI.
DeepCloud AI helps in building decentralized cloud computing infrastructures, and somehow, the projects and its team managed to survive the bearish market that happened recently. They raised funds through BitMax, but the market makers wasted these funds.
Who is responsible for BitMax’s wrongful practices?
Usually, IEO projects conduct the fundraising on a particular exchange and expand their business, and they pay a fee to the exchange that hosts the event and their token. Han has blamed Shane Molidor for the wrongful practices that are taking place on the exchange.
Shane is a senior executive at FBG Capital, and along with that, he is the head of business development at BitMax. Shane has worked with Gemini and IBM in the past. According to Han, Shane made misleading promises to DeepCloudAI’s team, and this affected the DEEP token as it witnessed the pump and dump move in its trend.
DeepCloud AI is not the only project that failed with BitMax. DOS Network, Ferrum Network, and DUO Network are some of the projects that failed as well. The project that has succeeded is UltrAlpha, and this is no surprise as it is a personal project of BitMax CEO, George Cao.