Greed is one factor of human life which when untamed leads to a straight downfall.
Greed is the reason Do Kwon did whatever he did to caused Luna to crash, it is the reason FTX went bankrupt and but it may not be the reason why you are not making profits when trading in mexc.
I am it is still the reason but it is their greed not yours.
When I newly started on crypto, I was interested in the quick profits and since Binance doesn't list most of those big movers I went to MEXC, a move which I really regretted and got my REKTed.
It is no news that MEXC has been running some shady things under the hood and has not been under the canopy of trusted exchange for most people....but denying customers withdrawal due to market volatility.....bro, WT.....this is crypto, it is meant to be volatile.
There has lots of reports about MEXC coming up with different excuses for withdrawals and success of trades, but the one below really caught me.
I’m gonna ask my bookie to clawback my abnormal losses gambling, if they can do it for people's profit, they should better do it for losses.
Right crypto, this is BIG. There's a lot of evidence circulating right now that MEXC has been scamming it's customers and stealing their funds if they make 'abnormal profit' on successful trades. In this message I'm going to explain exactly what this scam is and expose this exchange, this is not the first time a crypto exchange has tried to pull this off and I won't let it slide.
Ok, to put this into simple terms, what MEXC are doing is they're acting as broker and not a legitimate p-to-p exchange. Ok, so whats wrong with that? For MEXC to offer the type of products they offer and not disclose that they're operating as a broker is an extreme RED FLAG in trading and is obviously 100% illegal in the tradfi space. Let me elaborate on why this is bad and why you should stay tf away from MEXC.
Let's get into this, what MEXC have been doing in the pursuit of attracting new customers is listing an insane amount of new altcoins, literally anything they can find under the sun. This is a great selling point for traders but comes at a cost. The altcoins MEXC are listing don't have any real trading volume as they are small and unknown. What MEXC is doing to create the illusion of buyers and sellers is they're using their own liquidity provides and market makers to prop up the market with buy and sell orders to allow traders to get in and out.
In itself there is nothing wrong with this and using mm's to fill liquidity is standard practice for exchanges BUT... In this case, most likely more than 99% of the liquidity is coming from MEXC on these altcoins, this means traders on the platform aka YOU are exchanging assets with MEXC and MEXC only, just like how you would with a brokerage house. So you might think, well what's wrong with that?
The issue is that if you make a profit on an altcoin trade on MEXC you're not taking that profit from another random trader in the order book, what you're doing is taking that profit directly from MEXC, you're taking that profit directly from MEXC's mm's and liquidity providers. This is why they're freezing and stealing peoples accounts under the name of 'abnormal profit' - its because they're the ones losing the trade.
The recent doings of MEXC will have implications of the ETF signing and an overall effect on the market may be minimal. But the SEC has been looking for every reason not to sign this and MEXC has just again gave them reason why crypto should be tightly regulated.
Hope you learnt something today, I am ticktalker and I always post crypto/educative contents.
Making each day count in the world of crypto is crucial for success. Plan, research, and learn to stay ahead. Keep pushing, legends! 💪💯
Until next time, stay SAFU.
Please whatever is written in the article above is for educative purposes only. I am not a financial advisor.
Be sure to follow me and turn on the notification, to see more of my articles.
