How can a new exchange, assure investors that it is not a scammer?

Siren

sr. member

Activity: 826

Merit: 265

Quote from: CoinFascination on June 27, 2019, 11:37:27 PM

I someone starts an exchange, or if someone wants to use a new exchange, the fear is that it is an exit scam.
Well, one way to prove it is not is to have collateral in escrow.
Or some government assurance, or some insurance company assurance.

But, that is way too expensive and difficult.
And in the cryptomarket, KYC is not that attractive.

So how can an exchange demonstrate the fact that it is trustworthy?

This cannot be have overnight mate,you first need to gain trust from the community to vouch for your legitimacy and this will take long time.there are lots of exchange here that tried to make it fast and not they are dead.another thing is the support in which you must be very gentle and attractive to the investors and must be there whenever they need answers,if you can have a 24/7 accuracy then maybe success will be in hours soon

nicecrypto

member

Activity: 1260

Merit: 21

Quote from: Ridwan Fauzi on June 28, 2019, 05:21:23 AM

Quote from: CoinFascination on June 27, 2019, 11:37:27 PM

So how can an exchange demonstrate the fact that it is trustworthy?

You can promote it through signature campaign, choose reputable manager in this forum such as yahoo62278 , Hhampuz, LoyceV and other.

Through this way is really easy to attract many people moreover you have an exchange that every users need it.

You have to reemember to build up a trust is really an easy way, but the difficult thing is you have to preserve that trust until everyone know your place can be trusted.

Using Trusted forum members to promote an unknown exchange those not guarantee anything because this is peoples funds we are talking about here, anybody using that exchange is entrusting his/her money to that exchange, so when this new exchange turned out to be a scam, all this names you mentioned above won't take responsibility of what happened, so that those not really explains anything nor serves as a guarantee to trust a new not yet known exchange.

bluesnup

jr. member

Activity: 123

Merit: 1

Good marketing campaigns, see how they react when some calls them out on being a scam, how they solve problems for their community. A lot of things that can draw a picture of their ceo personality but even more what his actions are

leea-1334

hero member

Activity: 2338

Merit: 953

Temporary forum vacation

What is so expensive about having escrow to watch collateral? If 1 or 2% fees is too high,,, then you are not ready to do business.

And insurance will also cost you about the same in premiums, which is 1-2%. You can do what all companies do,,, and transfer those premiums to the customers. I think nobody will mind paying extra fees to have their deposits insured!

livingfree

hero member

Activity: 2884

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Hire Bitcointalk Camp. Manager @ r7promotions.com

Quote from: CoinFascination on June 28, 2019, 06:15:29 PM

Quote from: livingfree on June 28, 2019, 05:05:50 PM

Nice question if the exchange has reputable people and known by the community, I think that's one good factor to know that they are sure with what they are doing. I know you are worried with those exchanges that are just coming like mushroom.

They will pop and soon they will be gone. You will later notice that the new exchanges are sure with their operation if there are many users and volume is good on them.

Yes, but how do you know which is a mushroom. (Well, maybe not know, but suspect)

Suspect is your personal instinct but it's not enough indicator to know if that exchange is just like the mushroom definition that we're using. Observation will do, like for few days, week or even up to a month and see on how the exchange's behavior.

With that time span, you can determine already if that is true or just displays decoy as their front.

moffer5

member

Activity: 152

Merit: 10

Good question

lienfaye

hero member

Activity: 3010

Merit: 629

Having a reputed person to advertise the exchange is a good sign that this particular exchange is trustworthy.

But why would anyone try to use this new exchange?

Its better to choose a well-known exchanges and has a good background to make sure that your money is safe.

bitcoindusts

sr. member

Activity: 1092

Merit: 271

There are well known existing exchanges already, you can choose from those that do not have yet any bad records or less complains of users. It is indeed scary to trust those newly opened exchanges that do not have yet any credibility since there is a lot of new exchange platforms that are coming out today.

EdenHazard

legendary

Activity: 2674

Merit: 1048

The exchange on cryptocurrency is much, you don't need to find a new exchange for you to choose. The are many consideration when choose a new exchange which is mean you need a long time to believe it. I give a suggestion for you to choose an exchange, you can click in my signature then you will feel comfortable when you use it.

CoinFascination

newbie

Activity: 74

Merit: 0

Quote from: livingfree on June 28, 2019, 05:05:50 PM

Nice question if the exchange has reputable people and known by the community, I think that's one good factor to know that they are sure with what they are doing. I know you are worried with those exchanges that are just coming like mushroom.

They will pop and soon they will be gone. You will later notice that the new exchanges are sure with their operation if there are many users and volume is good on them.

Yes, but how do you know which is a mushroom. (Well, maybe not know, but suspect)

livingfree

hero member

Activity: 2884

Merit: 579

Hire Bitcointalk Camp. Manager @ r7promotions.com

Nice question if the exchange has reputable people and known by the community, I think that's one good factor to know that they are sure with what they are doing. I know you are worried with those exchanges that are just coming like mushroom.

They will pop and soon they will be gone. You will later notice that the new exchanges are sure with their operation if there are many users and volume is good on them.

Mahanton

hero member

Activity: 2730

Merit: 632

Quote from: CoinFascination on June 27, 2019, 11:37:27 PM

So how can an exchange demonstrate the fact that it is trustworthy?

Make your exchange on the ff:

-Great UI/UX
-Fast support
-Free of bugs

With these features or characteristics it would show that your exchange is considerable to be trusted.
but well gaining up traders or users wouldn't be easy so Marketing would be your next focus.

monalia

member

Activity: 685

Merit: 14

You have a valid question and if you ask this to exchange people they will never open their mouth. I would like to give advice for ICO teams to don't it will list their tokens on new exchanges.
To tell the truth it will create the the bad vibes on investing that token.
Please always target the large scale exchanges while you are looking to list your token.

Ridwan Fauzi

full member

Activity: 1330

Merit: 147

Quote from: CoinFascination on June 27, 2019, 11:37:27 PM

So how can an exchange demonstrate the fact that it is trustworthy?

You can promote it through signature campaign, choose reputable manager in this forum such as yahoo62278 , Hhampuz, LoyceV and other.

Through this way is really easy to attract many people moreover you have an exchange that every users need it.

You have to reemember to build up a trust is really an easy way, but the difficult thing is you have to preserve that trust until everyone know your place can be trusted.

CoinFascination

newbie

Activity: 74

Merit: 0

I someone starts an exchange, or if someone wants to use a new exchange, the fear is that it is an exit scam.
Well, one way to prove it is not is to have collateral in escrow.
Or some government assurance, or some insurance company assurance.

But, that is way too expensive and difficult.
And in the cryptomarket, KYC is not that attractive.

So how can an exchange demonstrate the fact that it is trustworthy?

Topic: How can a new exchange, assure investors that it is not a scammer? (Read 263 times)