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According to Mario Nawfal,


Did Coineal Exchange Scam an IEO or are they just incompetent?

Founder of Cybr, Shawn Key, was recently "scammed" of roughly $80K by the 16th biggest exchange as per CMC's (skewed) stated volume, Coineal.

Coineal originally listed Cybr for a "mere" listing fee of 11 BTC. It then artificially inflated Cybr token's sales volume up to a point of where it seemed (only seemed...) as if 56.56% of the total supply was sold. Everything was going well until token sales hit a halt and the IEO failed.  When Shawn turned around and questioned the 56.56% Coineal sent him an excel sheet indicating that only $3,000 worth of tokens were sold.

This all resulted in the delisting of Cybr and a full refund for all IEO participants, with the founder getting $0 in return and a loss amounting to approx $80K.

Two questions come to my mind after reading:
1. What happened to that initial 80k?
2. Is Coineal also amongst the exchanges faking their trading volumes?
3. Did Coineal intentionally scam Cybr?

Source https://www.linkedin.com/posts/mario-nawfal_ieo-crypto-activity-6562286564657942528-7LJe

Don’t let others take advantage of you in this unregulated space...

This is not the first case of fraud with IEO. Admittedly, participation in a non-Binance IEO can be dangerous for both investors and project founders. As a result, we get a monopoly business, which is formed by industry conditions? But this is the wrong way of the cryptocurrency.

It is not logical to make generalizations about SCAM in IEOs. IEO or ICO does not matter. The SCAM project is SCAM. It doesn't matter where the token is sold.

I am so tired of such exchanges. Poor guy has nothing to do with this, because it is clearly exchange fault. They are just drawing random numbers in the token sale process to keep investors interests and once TGE ends, it comes out that only 3k was sold.

The emergence of IEO's and the patronage it has enjoyed in most recent times will likely drop if this type of scenarios are allowed to continue! The crypto space clearly needs a regulatory mechanism to protect all parties involved.

well you're right, I see more and more new markets offering IEO / launchpad services. but investors must be careful.
I'm sure many investors have started to be smart in choosing IEO

What if that's only for a show and the fee really get backed? That's absurd for Coineal to take that fee or not really give back even the 75% of it and Coineal take the 25% since the IEO failed.

For me it is impossible that one of the biggest exchange will sell their reputation for 80 000USD.
They are earning more than 80 000USD a day, so I do not think it is possible.  :)

Why is it not possible? is coineal exchange old enough to be trusted like other big exchanges?ive never used the exchange and i dont plan on investing in IEO projects from other exchanges than binance,i dont trust anyother exchanges

yes you're right, a scam is still a scam. wherever they are will not change anything. so start to be more careful in having projects that you want to invest.

There are still many other exchangers who scam an IEO project, such as Idax Exchange, according to one of the projects that did IEO on the exchanger, Crypto Market Ads (CMA), said that IDAX Exchange, has done a scam. although in the end the CMA kept listing the exchanger.

Con artists are always looking for ways to make money either on ICO or IEO, we must learn more from previous experience we must avoid exchanges involved fraud, some small exchanges that implement IEO will result in a higher risk.

Maybe Coineal is one exchange that falsifies trading volume. Like p2pb2b. There have been many exchanges like that. Will CMC stay quiet by still displaying fraudulent exchanges? And hopefully, cheating that occurs in other exchanges will soon be revealed.

Well. Maybe coineal dealt with him also after noticing that he also want to use the project to scam people, we should not be too quick to judge, I believe that coineal will have their own side of the story too.

Moreover, I do not know what their term and conditions says, because it could state that the listing fee is nonrefundable, if the listing fee is nonrefundable, then I don’t think they have scammed, the project simply was cancelled for a reason, maybe after doing due diligence more, they found something fishy, and the best way for them to settle this will be in courts, if Shawn key feels that he has been treated illegally, then he can take a legal action against coineal and let them do the hearing in the court, and then we can full hear their own side of the story also.

Yes, there's always two side in a story so let's what for Coineal's official response. As far as the questions goes, specially regarding the fake volumes, I did checked Blockchain Transparent Institute (https://www.bti.live/reports-april2019/) and didn't see Coineal as one exchanges who do some fake and wash trading, but let's see next quarter report.

We need more proof that they indeed fake the volume and artificially inflate in by 56.56%. Obviously, the $80,000 went to Coineal, but we don't know what's their TOS on failed IEO. This is an interesting story to follow, as supposedly IEO is the next business model to replace ICO. Although investors is not a victim here, but it is good to note that the CEO or Founder is the only one victim here.

Yep you’re right man, Binance has always been the most reliable platform for any one that wants to start up an IEO. Another Launchpad that is good for startups is the Huobi Prime, they are really good. These are the only two that I’m very sure are very good for every startups, though I once saw Coineal being listed on Hackernoon as the fourth best exchange but I don’t really about it. Only Binance and Huobi does it, for me.

Scam is starting to become a normal thing in the cryptocurrency community. Any exchanges can indulge in scamming people, it is possible, you never know what’s going on and you only get to know the things that are shown to you and nothing else. So, I can’t really tell why they would show 56.% and at the end cook up another different story, maybe it’s a scam. The investors are very lucky that they were all paid back their invested money, the company would have signed for bankrupt.

I'm sure this guy has nothing to do with it, because it's the fault of the exchange. Why do people still use similar exchanges? It looks like bullshit on all sides.

We should hear both sides on this and they must provide evidence to prove.
It happened before with CMA and IDAX.PRO and now all is well and they continue the service.
What we need to do is wait for the result after talking of both sides.

not to disparage coineaal, but my opinion they are nothing more than a launchpad that is not clear because many of their projects are problematic, few weeks ago coineal had wanted to hold ieo neutro but three days before IEO started at Coineal Launchpad, CEO of Neutro escaped and in my opinion it was project scam and from here I think that exchange is nothing more than an obscure launchpad like and it's better to avoid IEO from there.

Investors needs to learn to stick with bigger exchangez to avoid any type of dissapointment,binance and okex or even gate.io is an example of good exchanges for IEO projects,if investors can choose these exchanges instead they will have better results and developers should also start listing their IEO on better exchanges to create better awareness

If the scam in IEO already started surely a lot will follow in future, and now more exchanges to choose from unlike before, which we have only Poloniex and Bittrex because of too many exchanges and finding a legit exchanges is hard.

Just as much as I trust some exchanges that conduct IEO, there are some I will never trust.
Coineal, despite ranked as 16th, it's obvious that it has fake volume and not only that, a lot of people have been complaining about it. So I am not surprised that such has happened.

Well, as it happened in the ICO boom, some exchanges are trying to overdo this IEO thing. I guess some of them are trying to forcefully organize something they're not ready for. I heard this same scam issue associated with IDAX. I hope the good ones we have around keep on doing their good job.

Manipulation? I have no idea. What is clear is that such an exchange will surely remain their reputation and be responsible for the failures. It's not an IEO or ICO problem, but a project that holds it. What is clear, we must be careful in investing, choose a global exchange that has a good reputation, if there is a failure, they will certainly be responsible for maintaining a good name.

Scammers will also find a way to scam people in the crypto space. People need to research enough before thinking of investing into any IEO project.  This will help investors to easily spot any IEO projects that looks suspicious and possible scam projects. Currently, the crypto space is made up of a lot of scam projects and investors need to be strongly aware of that whenever they are thinking of investing into any new project.

I was surprised by the CMA, after spreading idax scam they continued their project there. this is a unique case. some time ago I withdrew my assets from idax and stopped trading there because I considered idax to be fraudulent.
very confusing

Agree. Scammers always know the way to steal people's money. So, even if it is IEO or ICO, there is always a possibility for scam cases. Everybody shouldn't blind to invest money. What we need to analyze is not only the way of their token sale type or where the tokens are sold, but the main point is to know everything about the projects.

I knew the emerge of this IEO of a thing will be another dimension of scamming investors the more.
Whether they keep changing the name from ICO to IEO or anything related, it still same thing.
Don't be surprised the fraudulent activities in IEO will be much in coming months compares to that ICO, cause many believe it will be safer as tokens are being held by exchanges. Alas, it made it worst.

I definitely agree with this. SCAM is always a SCAM it's just a matter of how we deal with it. May it an ICO or IEO there are always people who leverage on our investment with the projects they create that made false promises.

The vast majority of exchanges that enjoy some level of traction don't want to put in the legwork in investigating a platform applying to do an IEO with them. It would just take a few minutes of browsing through their white paper, meeting their team, understanding the underlying technology, and recognizing the steps for success of their use case. The reality is that most will just say, pay like 3 BTC and then we'll talk. There's a disconnect between the exchanges that want to be lazy in their vetting processes and the projects that are honest that want to pay a listing fee as a percentage of the amount that they raise. Once a clear exchange leader emerges that can make the application process seamless and clearly delineates the points that a project is trying to convey about their use case and improvements to the ecosystem they’re trying to bring then they'll do exceptionally well.

It's been a norm in small and medium cryptocurrency exchange to fake the volume of tokens sold, some people believe its a marketing strategy to pull more persons to the exchange and help sell the tokens faster. I've stopped believing what is being said about tokensales as most times we hear stories like round 1 and 2, sold out, but the progress is still raising funds after 6 months of establishment.

The problem of todays investors is that if somebody sees that a token sale would be launched on a major exchange, they do not care about the product and project in general. You can launch whatever IEO on Binance and it would be sold out.

IEO become popular and surely there will be a few scam projects. Don't participate in IEO project on small exchange, look for Binance and Okex if you want to invest in IEO project.

We can learn from the experience of previous projects, through personal discussion will probably find the best solution for both sides. Hopefully, some decisions do not harm one side.

When it comes to investment, scam can actually happen through any means like you said, even in IPO investment, people still use it to scam people, so the security of our fund is partially in our hands, we can protect it by ensuring it is given to the right project and also done through the right exchange platform.

Normally, I knew it would get to a certain point where scammer will own exchanges, and then use it to scam people, but they can only have their way through that if we don’t watch the exchanges that we use for our investments. For my own opinion, any IEO that is outside the platform of Binance and the other 10 great exchanges that w have I will be extremely careful about them, we need to watch out only for IEO from those top exchanges alone.

There is no doubt that Coinal has a higher number of fake volume. Investors should be careful of these types of exchanges like IDAX, Coinal, Latoken, Exmarkets IEO! Binance, Kucoin, Gateio, Huobi's IEO are a safe investment, otherwise, some other exchanges are good though but profit is not confirmed there!
But I don't think Coinal scammed 80K USD. Because Coinal has a higher rank in the Coinmarketcap, so they can earn 80K USD easily, they won't spoil everything for 80K USD.

This is really bad and shouldn't be accomodated at all as it dents the crypto exchanges. This is not the first time am hearing of exchanges scamming via IEO and it's encouraging. I have said it to anyone who wishes to listen that irrespective of the fact that IEOs are a bit better than ICOs one still needs to be very careful of any exchange promoting the IEO and not to be carried away by anticipated profits.

because fake volume maybe ?, I see many reports that coineal is one of the exchanges that enter the fake volume list and therefore it is natural that exchanges with fake volume make a scam

IEO investments are only profitable for a short period of time and if investors have made a good profit from large IEO projects, they should be sold to secure profits because most current IEO projects have time price increases are very short and there is always a correction when things start to stabilize. I personally do not like to invest in IEO projects because the participation rate is very difficult and many projects make investors feel disappointed so they should not invest in the IEO if they feel the project is bad.

not all IEO projects succeed on a short time, I think it depends on the project. but I agree, with the situation of the cryptocurrency market that is not yet clear, of course selling when profit is a good choice, moreover we note that the altcoin session has not seen signs yet. although many say hold is the right choice, but for me the moment is the most appropriate choice

$80,000 for listing a single IEO? Just imagine how much these exchanges are making, as many of them have 20-25 IEOs ongoing at the same time. I just checked the IEO spreadsheet created by Tetris, and he has listed 22 ongoing IEOs. So earlier with ICOs, it used to be the ICO promoters who used to do the scamming. With IEOs, the exchange owners have become scammers.

That said, I would direct some amount of blame to the IEO promoter (Shawn Key). He had invested 80K for the listing and he should have been more careful. At the very minimum, he could have signed a legal agreement with Coineal, providing him the list of the services he expect from them, including real time tracking of the IEO progress. 

Judging from a case like this, I suggest you better buy trusted IEO coins such as Binance exchange and Okex, because the quality of IEO in both exchangers is very good, and I do not recommend you to buy IEO coins at an unreliable exchanger that has a low trading volume

"IEO or ICO does not matter" - Great Saying bro.
Scam project always scam. Team member is main things to scam a project. We should be aware IEO or ICO before joining.

But still, be careful in using the money to buy the IEO because we don't know how their future and how good their project to survive in the market. But I agree that it is better to buy the IEO project from recommended exchanges because the project can get support from the exchanges. Binance, Okex, Bittrex can be an option to choose the IEO, and I think before the project can get listed as the new IEO, the project needs to be verified by the exchanges so it could reduce the chance to be a scam project.

coineal was doing something fishy and the team was getting scammed by paid 11 btc to the coineal as the fees but that doesn't make sense at all. as far as i know the fees in another exchange site like binance will be cutting from the how much sold in the IEO.
more than 70% volumes in coineal was fake and this exchange site was sitting in the same tier with exrate as the exchange site that manipulated its own volume.
coineal did intentionally to scam cybr. From that case we can see how coineal was putting the cybr team in a big risk by paid the listing fees first.

I would like to hear both sides of the story. Let's hear from Coineal as well. I have never used that exchange, but I think they have been around for a while. But in case what Shawn Key saying is 100% accurate, then I would advise him to launch a lawsuit against the exchange (although it is going to further drain his time and resources).

And one more thing. If I am not wrong, Binance exchange has a fixed fee (which is quite small), on top of the royalty from the IEO sales. So the formula would be X BTC + X% of the sales. This is the formula that most of the exchanges follow. Only a very few exchanges don't have the variable component in their listing fees for the IEOs.

We don't know exactly what is happening with that, and we could only guess. I think that project has to choose the wrong exchange so he cannot reach success in the exchange. I never use Coineal for trading because I don't know how good their reputation among the other exchanges, and I prefer to the recommend exchange only for the trading. Maybe that news is right, but still, we don't know what is happening. The developer of the project needs to be careful to choose the exchange and only select the recommended exchange like binance, bittrex, kucoin to list their tokens.

Indeed, there's no platform that is perfect, if we like to have a high chance of success, we should only trust those exchange that are proven to be running a legit IEO. Actually, if we compared IEO and ICO, I would still appreciate IEO so far as although there are some report of scam(s), it's still way lower compared to the number of scams of ICO, and therefore less risk for the investors.

and finally the CMA listing is also on the IDAX Exchange, because it says only miscommunication
I'm not sure just for the sake of $ 80,000 coineal taking this deadly step, we should wait for the development of the information
But in my opinion Exchange as the organizer of the IEO should be more filtering every project that enters for IEO

It could be that the exchange only wants money from a project to hold an IEO there, he doesn't care whether the project is good or not, even though it is a very important thing because it involves the future of the exchange

That is even low compared to what other of exchanges like huobi, binance and other great exchanges are making, but I don’t think that it is really a bad idea for them to place such amount of money on the project because if the listing fee is too cheap, then we will have series of very bad project being able to afford it, at least this will first scare non-serious projects away because any serious project should at least have their money first.

I am so sure that Yobit fee is extremely very low because I can see how many shit IEO are being released on the platform always, but in a case where the listing fee is high, it would discourage nonserious projects first and limit the level of scam and bad projects that we have In the market today, but what exchanges do with the fee is what needs to be reviewed.

In that case, you should not trust an exchange that has a bad reputation or those who hasn't build their reputation yet.
If all investors will just focus on good exchanges that has good liquidity, they'll certainly have a good chance to be profitable.

I know they know which are the popular exchanges in the market, but they still tried to take chances on the small once.
Though it's hard to invest in big exchanges especially in Binance but the effort you spend will make you profitable, so it's worth taking a shot.

Investing in bad exchange is like buying shit coins, they rather buy cheap altcoins in the market now and hold it until it rises again.

before that I thank you for providing this kind of knowledge. This is indeed a new monopoly for IEO, even exchanges with large volumes also do like that. What about small volume exchanges do some of them do that kind of thing.  this is really damaging to the new IEO program. Whereas I hope that with the IEO the crypto image will improve for investors

It is good to report any fraud projects or fraudulent exchanges, this help us to avoid projects and exchanges like this, but should include also the proof of this is a scam,  this is a fair for the both side.

This will something affect the reputation of Coineal and also it could lead some doubts for the investors to put their money at risk with IEO. I hope it won't be like to ICO, it has to believe that IEO will look different from ICO and how it started but this news (alarming) can't be out of our mind that or it may go into scams back again.   

I buy this idea equally; nothing can be done by the exchange if the project decides t exit scam by dumping all

But as an investor; if you can open your mind; you are aware of scam projects; but you just wouldn’t admit

Keep your emotions away when investing

There are so many scams, we saw a lot of many reports and we should also learn from that. IEO is new but its also a good place for the scammers, this is why i don’t participate on not listed coins. Have to be care or else lose money, that’s the worst result if you invest without any care at all, be a good investors.

Exchanges looking for profit only, it is a business, so all exchanges charge very high fees to run IEO, if IEO fail only the exchanges will win
We should research deeply before join any IEO.

Indeed, Coineal should immediately respond and provide clarification on this issue so that it does not increase so that the coineal is disadvantaged. Because after all trust in the world of crypto is the main opinion in my opinion

many problems are happening with IEO now, this news will be very detrimental to the development of crypto and IEO, we have lost confidence in some Exchange, now IDAx Coineal, Binance with hacking, and more, this must be an immediate solution for Exchange developers, don't until Exchange loses its name later, I haven't found a clarification about this by coineal. so, trust must be built together, crypto developers, Launcpad exchange and investors, so that crypto really develops.

This must be the very first scam accusation where I did not read one single (bot/zombie) newbie account trying to defend the exchange with lines like "I am using Coineal and I never had any problem".

Maybe a negotiation is ongoing between the two parties. Coineal cannot just return the entire amount since they also had some expenses when they were trying to sell Cybr tokens.

Was there an evidence released?

I don't think it was their intention to scam their client. It just so happened that investors were not really interested with Cybr despite the effort of Coineal to hype it.

Until now I have not been interested in trying ieo. Because based on experience from last year always loses when investing in ico so it makes me hesitate to invest in ieo. But several times I saw the project that held ieo in binance was always successful. And the price goes up many times after that is finished. Exchange greatly influences the success of ieo. And I am sure a good exchange will not arbitrarily accept projects for ieo.

IEO projects listed at Binance are always very well reviewed and must be evaluated by a lot of experts. Hundreds of ICO projects apply at this exchange every day, so it takes a lot of manpower to conduct that check. I personally fully believe in all of the IEO projects proposed by the Binance exchange because it brings a great deal of profit to the participants and up to now any project listed here has a level of double profit compared to IEO price

It sounds like only Binance did well, but how about the others? Did their IEO projects turn into a scam? I hope it won't and not to like seeing IEO being shit just like what ICO did. We all thinking that IEO could make a change but if it goes like these, better not to trust them anymore unless it runs by Binance.

I hope those developers who want to launch their project, they have to think also the benefits of all and not just for themselves.

It is true that IEO in binance has no doubt because there have been many IEO programs that have not really deceived investors, if I think it's not just bination, there are a lot of highly trusted exchanges like Bittrex which yesterday held a very successful IEO vodix token and third exchange exchanges. The investor is very trusted

I don't trust any ieo or exchange conducting them as lot of them are just fakes and coineal might actually bought those token themselves and hype the price to dump on fomoers and when it turn out to be refund to the ieo funder , they halt the trading and dump it on investors to pull out the cash in other coin which they believe will be a gain for them even if they return the investors fund.

But my question is when they know that the figure displace when the ieo was on was wrong why not let people know until it was ask for remit which is there fault and under the law they should be dealt with .

I don't believe in the volume generating by those exchange anymore I just trade my own way to any coin with my TA and this is why we see lots of manipulation in market now a days.

With the existence of several problems that afflict crypto exchanges, of course the trust from the investor will diminish, and for a good solution the exchange party must quickly fix the problems that have already happened to the exchange, so that their exchange names are not defective in the eyes of the crypto public.

I think if you choose a good exchange to join IEO then you will have very different assessments because each exchange has a different strategy and if you choose Huobi then you will very easily earn big profits if you have the opportunity participation. There are currently hundreds of IEO projects listed at lots of normal exchanges and it is best to stay away from those IEO projects as most of them are not profitable for investment. I personally recommend Huobi, Binance, Okex, Gate, Kucoin because those are the top 5 exchanges with the highest success rate

2019 was the year of the rebellious IEO programs, ICOs were unable to attract investors. I do not trust IEO programs from small and insecure exchanges. Major trading platforms like Binance, Houbi, Okex have done very well to create confidence for investors. However, there are many IEOs with many different types of scams, they can take advantage of investors' trust with exchanges to make money or scammers who have cooperated with trading platforms to Make money from investors.

There is another possibility that could have happened during the CYBR IEO, which many users would have overlooked. Shawn Key himself admits that there was a bulk order on the first day, which took the proportion of sold tokens from less than 1% to over 50%. There is a real chance that this was done by an individual user, and he might have withdrawn his investment just before the closure of the IEO, as none of the other whales were investing in the listing.

If this was the case, then we can't really blame Coineal.

Im afraid Coineal is not the only one who running IEO on their exchange like this.
I have read about idax, there are some fraud accusation about their IEO too.
Before investing on IEO, i highly recommending that we must only select the top exchanges with real trading volume ( at least less fake volume ) to invest on.

Most exchanges running IEO after binance are only doing it for the money and that is why they came about theirs, so what else do we expect from them, we expect to do their due diligence like binance will do or we expect they to really care about developer of investor? Just as advised by you, if we really want to do anything about IEO, we have to make sure it is with exchanges that are reputable and will really guide our investment.

One of the reason why IEO is not thriving as much as ICO did in that 2017 which I had thought would be the push for this years bull run is because most exchanges that are doing it are not really serious, and I think that the only exchange that is still much more okay in this field is just binance, but binance is still finding it very difficult to really produce a quality project because we lack it.

Coineal IEO?
Better skip that, most of the project are listed on this exchange are shit project and just aim for quick buck. I saw some of their Coineal IEO progress always saying SOLD OUT but I'm not sure is really SOLD OUT, maybe is just fake...

well i agree with you, reconsider before investing anywhere be it IEO, STO, ICO etc. in this case we have seen many good projects but ended up with fraud, IEO is one of the new project programs but you also have to be vigilant because of scamers Will not stop to deceive investors, scamers are always around us.

that's right, we better choose a large exchange because it is impossible for them to falsify trading volume, if they falsify trading volume then it will damage the good name of their exchange.

so now, i think ICO and IEO don't have differences anymore, now they look the same.
i feel we should be more careful when choosing an IEO project.

I was not too surprised by this article. Because mid-range exchanges often use these tricks to trick investors.
When the projects listed on the exchange are sold out, there is definitely an interest in investors and want to buy the projects listed on the exchange. That's why this unfortunate event happened, it happened the same with IDAX.
But everything will be resolved as well.

I just found this out. I don't think coineal only does that. There are still low exchanges that do IEO and it is very damaging to IEO's reputation in the end.

It's better to do IEO in the real / top exchange for the security of investment value. Compared to having to lose money investing IEO at low exchange.

Any IEO from big exchanges like coindeal usually gets sold out on time, and you know that coindeal is also as big as binance although binance still the best. That is how binanceIEO gets sold out easily too and I can tell you that as fast as my internet is, as fast as my fingers are on mouse and keyboard, I have never been lucky to participate in IEO of biance because it is always getting sold out like you said, but I would not judge that they are fake because I know we have thousands of people who are always interest in the limited space to buy the coin. 

I think for coindeal issue with the developer, something must have gone wrong that we do not know because I have known coindeal for long time now and I have come to trust them for their great services that they have rendered to the society.