The cryptocurrency industry has seen more than its fair share of dodgy operations, scams, and hacks. Unfortunately, this is the natural circle of life as with any new innovation, most notably when they are dependant on the internet.

Consequently, we are obviously very cautious when deciding who we can trust when dealing with our hard earned cash. However, it is super important not to rely on the word of external sources, rather follow up on the claims they are making with respect to what company they are accusing to be a scam.

This is exactly what I have done regarding the bitcoin-based margin trading Platform, PrimeXBT, which has recently received some bad PR.

Interestingly, PrimeXBT has become very popular in quite a short period of time, having only launched in early Feb 2019. The trading platform provides the crypto industry’s highest leverage of up to 100x to all of the top 5 crypto assets. More recently, the platform expanded to incorporate traditional financial instruments in forex, commodities, and stock indices.

The only other crypto trading platform to offer as much leverage is Bitmex which also offers 100x, however to Bitcoin only, and has absorbed a large part of the bitcoin trading volume share for this reason. So, it should come as no wonder that PrimeXBT has been received so well by expanding upon this.

When I came across an article suggesting that PrimeXBT was a scam I had to know why. However, it didn’t take long to realize that a lot of the supposedly damning information was, in fact, incorrect and misleading.

But why would a media source go out of their way to wrongly accuse the crypto trading platform? The answer is, of course, money. This is referred to as ‘black hat PR’ and is a dishonest tactic that competitor businesses use to create a negative buzz about a threatening competitor business.

Firstly, the aforementioned article suggested that PrimeXBT could be a scam ended with a referral link to another competitor trading platform. This might suggest that they were paid to create the negative piece in an effort to make their target audience lose trust in PrimeXBT.

So Why is PrimeXBT Supposedly a Scam?

The most harmful and misleading claim made against PrimeXBT is that it is not a registered business. This assumption was based on the reality that it is not possible to find the company name ‘Prime XBT Trading Services Ltd’ upon searching in the Seychelles registers. It sounds bad, right? But wait, there’s more…

Seychelles registers are not publicly available, only specific types of Seychelles companies require public registration. If this was the case the same could be said for Bitmex, also registered in Seychelles and upon searching you cannot find their company name ‘HDR Global Trading’.

You can see for yourself, try searching ‘HDR Global Trading’ and ‘Prime XBT Trading Services Ltd’ in the same register: http://www.sqa.sc/bizregistration/WebSearchBusiness.aspx

As a testimony their legitimacy, PrimeXBT recently partnered with Covesting Ltd, a DLT exchange licensed by the Gibraltar Financial Services Commission (see here), validating Covesting’s mission of being a compliant, secure, and transparent cryptocurrency exchange. In order to adhere to Gibraltar’s extremely strict jurisdiction, the company is bound to engage with likewise enterprises of the highest caliber and solid infrastructure.

Another attack at PrimeXBT suggests that their twitter following is fake, yet there is no evidence to back this up — just a bold statement.

The next rebuke, PrimeXBT has no KYC, therefore it supposedly dodgy and not safe. Again, the attack is biased against PrimeXBT as some of the most reputable and widely used crypto exchanges (eg. Binance) also have no KYC.

With respect to a trading platform’s security and protection against hackers, it really makes no difference whether there is any KYC or not. The submission of private information does not prevent user’s funds from being lost in the first place and it certainly does not protect a user’s privacy. In my opinion, one of the best things about cryptocurrency is anonymity — so for me, this point is mute.

Why PrimeXBT is Not a Scam

When you actually create an account and take a closer look at PrimeXBT, you can see why competitor trading platforms are threatened. The user interface is incredibly intuitive and easy on the eyes. More so, it is highly customizable so you can adjust the workspace to your personal preference by resizing, moving, adding or hiding widgets that you do and don’t use.

The feature suite is also very impressive, with advanced technical analysis tools, a wide variety of order types, as well as a net aggregation tool which helps you organize all open positions with the possibility to go long and go short on the same asset to hedge and minimize risk. Order execution is quick and precise with liquidity pooled from a dozen or so leading exchanges.

It is obvious that the company has invested millions into its product. Its robustly secure and advanced technological infrastructure is no joke. Not to mention, the high number of users and daily trading volume, which the platform today alone has hosted more than $1 billion USD within the last 24-hours.

And of all that capital, there have been no negative reviews that I can find to say the experience was bad, rather that it was an exceptionally good trading experience. For instance, this happy trader @MHShiew who took to Twitter to share his positive experience.

Also, PrimeXBT is one of the very few bitcoin-based trading platforms that grants unprecedented access (due to the fact there is no KYC) to the world’s most popular traditional financial instruments with the highest leverage across all assets.

Final Word

It seems that competitor trading platforms have a lot to be threatened by and because PrimeXBT is a relatively new company makes them an easy target. All of the criticisms made against the platform were biasedly based, did not tell the whole story, and/or wasn’t backed up.

PrimeXBT does appear to be very legitimate and a trading platform that deserves as much trust as the next. All online trading platforms are targets for hackers, but with the best security practices and mechanisms that exist today, PrimeXBT is built to guard against such events with a multi-level line of solid defense. Read more about the platform’s security here.

To see the platform for yourself and to make up your own mind, head to https://PrimeXBT.com.