09 July 2018

Bitpaction Cryptocurrency Exchange – Caution Alert!

Neo Ecosystem Smart Economy projects Bridge Protocol, Splyse, Narrative, Travala, and others have all come out advising token holders to withdraw all tokens held on the ‘Bitpaction’ Exchange.

The warning comes after a number of users have reported a series of issues and irregularities with regards to the cryptocurrency exchange. It has been reported through a multitude of sources that deposits on the exchange are no longer possible.

At the same time, withdrawals have become a serious issue. Bitpaction users have been complaining that they cannot withdraw or that the withdrawal fees have skyrocketed.

Skyrocketing withdrawal fees

While the newly applied fees are not being listed on the Bitpaction website, the reported increases in tariffs for taking your tokens out of the exchange are staggering.

Some have reported that it would cost 0.01 BTC to take out your Bitcoin, which amounts to $67 USD and a whopping 0.25 Ether or around $120 USD to transfer your Ether tokens to safer havens.

Bitpaction – A deafening silence

While various Neo project leaders and Bitpaction exchange users have been trying to reach out to the Bitpaction administrators, they have all failed in getting any response from the Bitpaction team.

We can observe that the cryptocurrency exchange posted its last Twitter update on June 25th. This is highly irregular as was noted by the Master Contract Token (MCT) team on their Twitter channel July 5th.

We did observe a confusing pinned message on Bitpaction Telegram Channel, which urges people to switch to another Telegram Channel.

Bitpaction Telegram message

Bitpaction Telegram message

Neo Community Reactions

CEO of Bridge Protocol Stephen Hyduchak did not leave any room for doubt and urged the community to stop using Bitpaction right away.

After numerous attempts to contact their leadership, we have received no response. We urge the community to stop using Bitpaction immediately. If possible, you should withdraw your TOLL tokens from the exchange. Some users report being able to withdraw, others cannot.

Travala also used their medium blog to issue a statement to its community. Apparently, AVA token holders now have to pay a 500 AVA token withdrawal fee if they want to move their digital assets. That is around $50 USD worth of Travala token.

We hear similar words from the Narrative community which also released a statement regarding the issue.

Potentially affected communities and token holders

The list of potentially affected communities goes far beyond the NEO ecosystem.

List of traded blockchain projects and cryptocurrencies trading on Bitpaction:

Orbitanchain (OBTC), Bridge Protocol (TOLL), Narrative (NRVE), Orbis (OBT), Master Contract Token (MCT), Thorecash (TCH), Travala (AVA), Parkgene (GENE), GenevieveVC (GXVC) (GXE), Pedif (PEF), VIO (VIO), AELF (ELF), Webcoin (WEB), NEO (NEO), Etherium (ETH), Bitcoin (BTC), Beluga PAY (BBI), Zilliqa (ZIL), Pokersports (XPST) ,Obizcoin (OBZ), Darenta (PROD), Potentiam (PTM), Commerce Block token (CBT), Token Security Scheme (TSS), VSlice (VSL), Chronobank.io (TIME), Scry.info (DDD), Retainly (RETN), Power Ledger (POWR)

Bitpaction Shares (BPS) are plummeting in value

Unsurprisingly, Bitpaction shares (BPS) have also plummeted 98.71 percent in value as faith in the exchange is quickly eroding.

Bitpaction -Neonbeginner

Bitpaction -Neonbeginner

In closing – If it walks like a duck, quacks like a duck,…

For many users of the Bitpaction exchange, this news might come too little too late. This situation is another reminder as to why we are building decentralized systems in the first place. The whole idea of having decentralized assets is that you can have undisputed ownership and control over your assets at all times. You don’t need to trust a third party to ‘take care’ of ‘your’ money or any other kind of digital asset for that matter!

Etherium’s Vitalik Buterin recently said the following about centralized exchanges:

“I definitely hope centralized exchanges go burn in hell as much as possible,”

Finally, as quoted in some of the news releases today by some of the NEO blockchain projects:

As a general best practice, it is never advisable to store funds on an exchange, regardless of the size/reputation of it. The safest way to store cryptocurrency is in a wallet where you control the private keys; a hardware wallet is ideal.

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