PSA: Do not use OMGFin for Small Cap Markets
OMGFin logo with an 'X' over top

PSA: Do not use OMGFin for Small Cap Markets

By AlgoRhythm | AlgoRhythm | 10 Jul 2020


I was recently on a quest to buy some Matic coins since they just opened up staking to the public, and as you may know from some of my other articles, I'm a big fan of Proof of Staking coins. Since my usual exchanges did not have any Matic pairings, I searched the market pairings on CoinMarketCap to see what other exchanges offered Matic.

The clear winner would have been Binance, but since I had not set up my KYC and only planned on buying a small amount to start with, I did not want to hassle with getting an account setup. So I decided to try some of the other exchanges. I've used IDEX in the past and find their exchange to be easy to use, reliable, and low in fees, but IDEX's MATIC/ETH pairing was not available in the US, so that was out. The other 3 options were Hotbit, Cat.ex, and OMGFin. Hotbit's 24-hour volume had a confidence of 0%, Cat.Ex had a 24-hour volume of $49 (and a confidence of 0%), and OMGFin had a $20k volume and high confidence. So I picked OMGFin.

A few basic email, password, Google Auth steps later, I had my OMGFin account and was ready to trade my Ethereum for Matic. The UI looked clean and easy to use and there looked to be plenty of volume, so I put in my first limit order of roughly the last ticker price. I impatiently wait... no bites. Oh well, can't be too surprised. A little higher bit... a little waiting... nothing. So I decide to just take the lowest seller's offer. I put in my limit order at the sell price, set the number of coins to buy (which was lower than the amount offered), and click buy. Suddenly, that sell offer was gone and I now have a maker order in the buy column. Well, cancel that, try to buy the next lowest sell order, see that order is now gone and I now have a new maker order.

Now this is getting suspicious. So I put in a bid above the last ticker and above the 4 seller's orders.

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When I click Buy, what happens...

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Those 4 sell orders are gone, the latest ticker shoots up above my bid, and I now have a buy order. So I go see if others have the same issue. It turns out I'm not the only one who's seen this and it's a common problem for OMGFin. One crypto rating site has many users' comments stating they've lost money, seen fake orders, or been scammed in other ways. I gave up trying to buy Matic at this point and was lucky enough to withdraw almost all of my funds. I say 'almost all' because when I went to withdraw my funds the UI showed I would receive 0.23272436 ETH after the 0.01 fee. I only received 0.232 ETH in my account, meaning they didn't send the remaining 0.00072436 ETH. I do know that fraction of a coin is only pennies, but it's just another way the exchanges is dishonest to their customer.

My title states you shouldn't use OMGFin for small cap coins because that's all I tried. Some reviews said they didn't have an issue with BTC/USDT trades as I could see that has higher liquidity and might actually work. But my experience with OMGFin has been negative and they have proven they are dishonest, so I will be staying away from the exchange all together and I recommend you do the same. 

And if you were curious how my hunt for Matic has gone, one nice redditor pointed me to Uniswap which I was successfully able to trade my ETH for Matic. Now I'm on the mission to stake those coins, which will be a topic for another post. Thanks for reading! Leave a like or comment if you have any questions or specifics you want me to post next. 


AlgoRhythm
AlgoRhythm

Dabbling in all things crypto, specializing in PoS networks. Living the sweet life of building nodes and staking coins.


AlgoRhythm
AlgoRhythm

Taking all the information in my head and sharing it, one post/review/tutorial at a time.

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