- Scammers are always looking for new and easy ways to steal your crypto
- One company is selling the code for a crypto exchange for a mere $999
- This is great for entrepreneurs looking for a quick and easy exchange launch, but scammers could also use the code
In a day and age where people want quick, easy and KYC-free access to crypto exchanges, it comes as quite a shock when you discover that you can actually buy your own crypto exchange for less than $1,000. It might only be $1 less, but for the price of $999, you can get your hands on your very own crypto exchange, putting you in control of your user’s cryptocurrency assets.
This is incredibly worrying as it makes running an exchange scam incredibly easy and within reach of virtually anyone. The exchange can be installed in a matter of minutes and you can be up and running in no time at all, with a little coding experience.
This Could be Potentially Dangerous
Now, if you’re familiar with any cryptocurrency scam on the web, they’re all half-assed and most are littered with glaring bugs. This means that these scammers don’t really have the know-how to take this code and use it to its full potential in the form of a scam/theft attempt. But, that doesn’t mean they can’t learn or hire others to help them in order to yield more profits from people.
It comes without saying that not everyone who buys this exchange code will use it to scam people, but it does open up the possibility. Right out the box, there is no 3rd party custodial service, and the app runs its own nodes – meaning that YOU own the keys to all the crypto deposited into the exchange.
As we saw with Quadriga CX, MT. Gox and virtually every other crypto exchange that went poof, taking users funds with it, that the exchange holding all the keys is rather risky. This risk is multiplied by an insane magnitude when the owner of the exchange could be any Tom, Dick or Harry that has $999 kicking around.
There are Positives, Though
People think that starting a crypto exchange has to cost a fortune, but that’s not true. If you’re a legit business person and want to get your own exchange up and running as fast as possible, this is a great option. With more than 1,000 coins available for integration, a mobile app coming very soon and more, this off the shelf crypto exchange could be pretty helpful.
Obviously, you’d still need to apply for the necessary licenses, ensure your security is up to scratch and that your servers can handle the traffic that you will receive, but that doesn’t make it impossible. You no longer need a holistic and fresh approach to build an exchange. You can buy the bare bones of one, flesh it out with your own styling, ideas and security features, and launch – no questions asked.
Just Be Careful
We’re not calling the developers behind this particular exchange bad or suggesting that they’re aiding criminals in stealing your crypto, but the potential is there for bad actors to use their code for nefarious purposes.
In the end, the onus is on you as a user to do your own due diligence and ensure that any exchange you’re going to use is fully regulated in your jurisdiction and that it’s not a scam. There are loads of red flags you can look out for, so be mindful of these.
If you’re still in doubt whether an exchange is legit or a wolf in sheep’s clothing, just stick to the big exchanges that are well known and widely talked about. Don’t just use some shady new exchange that someone mentioned in a crypto Telegram/Facebook group that one time…