{"id":238790,"date":"2019-10-02T08:11:35","date_gmt":"2019-10-02T12:11:35","guid":{"rendered":"http:\/\/insidebitcoins.com\/?p=238790"},"modified":"2024-05-02T10:16:18","modified_gmt":"2024-05-02T10:16:18","slug":"crypto-exchange-bitmax-accused-of-operating-a-pump-and-dump-scheme","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/crypto-exchange-bitmax-accused-of-operating-a-pump-and-dump-scheme","title":{"rendered":"Crypto Exchange BitMax Accused of Operating a Pump and Dump Scheme"},"content":{"rendered":"

BitMax, the exchange that was frequently touted by many investors as the \u2018next Binance\u2019 has landed in a deep ditch. The exchange is being accused of starting pump and dump schemes<\/a> by several projects. Lunar Digital Assets founder Han Yoon recently wrote about the project stating that he couldn\u2019t have been \u201cmore wrong\u201d about the potential of the exchange. He noted that everything seemed to be going in the right direction for the exchange<\/p>\n

A slew of misleading statements<\/h2>\n

Han Yoon explains the horrible business practices at BitMax via DeepCloud AI, a project that met the lowest point in its otherwise short life span after listing with the exchange<\/a>. He explains that BitMax CEO hired Shane Molidor as the head of business development at his company. Molidor was considered a dubious choice for the role because he was earlier working with FBG Capital, a company notorious in the business circles for its unethical and incompetent practices.<\/p>\n

\"Crypto<\/a><\/p>\n

When roping in DeepCloud AI, Molidor reportedly made tall promises and said that the team doesn\u2019t need to worry about listings. They are the market makers in the case and would handle the liquidity part. However, the BitMax market maker ended up buying tokens very aggressively, which led to a price pump. This artificially inflated price couldn\u2019t last long, and BitMax ended up burning $1.275 million in liquidity funds.<\/p>\n

The market maker ran out of liquidity funds to support the buy-side and the DeepCloud AI token DEEP experienced a massive crash. Han Yoon writes,<\/p>\n

\u201cThe 18 months of hard work that the DeepCloud team has put in, surviving the brutal bear market, finally raising funds only to have it wiped out by bad actors is just heart-breaking.\u201d<\/p><\/blockquote>\n

Lunar Digital accuses Shane outright<\/h2>\n

In his blog post, Yoon says that one of Molidor\u2019s colleagues who is working with Lunar Digital Assets for another project didn\u2019t seem surprised by his actions. During his time at FBG, Molidor was infamous for his unethical ways and used to brag about his pump and dump schemes as well.<\/p>\n

Now that IEOs have replaced ICOs, the industry is taking a different turn. BitMax has launched five IEOs to date- DeepCloud AI, DUO Network, Ferrum Network, UltrAlpha and DOS Network. Of these, UltrAlpha is BitMax CEO\u2019s personal blockchain project.<\/p>\n

Yoon says that BitMax duped these and several other projects into believing that they are market makers and paying them a heavy fee for that. DeepCloud AI alone brought in $300k. He notes that it is difficult to suggest if Molidor\u2019s incompetence is responsible for this problem or the fact that BitMax is willing to demolish new projects for a few gains.<\/p>\n","protected":false},"excerpt":{"rendered":"

BitMax, the exchange that was frequently touted by many investors as the \u2018next Binance\u2019 has landed in a deep ditch. The exchange is being accused […]<\/a><\/div>","protected":false},"author":1730,"featured_media":238792,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[7596],"tags":[9388,9533,8098,9531,9530,9529,9532],"class_list":["post-238790","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-bitmax","tag-deepcloud","tag-digital-assets","tag-han-yoon","tag-next-binance","tag-pump-and-dump-scheme","tag-shane-molidor"],"acf":[],"yoast_head":"\nCrypto Exchange BitMax Accused of Operating a Pump and Dump Scheme<\/title>\n<meta name=\"description\" content=\"BitMax, the exchange that was frequently touted by many investors as the \u2018next Binance\u2019 has landed in a deep ditch. 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