beware of IEO SCAM

[bryant.coleman]

$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. 

[airdagon]

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

[GoldenView]

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.

"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.

[ethereumhunter]

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

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.

[X-ray]

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.

[bryant.coleman]

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.

[michellee]

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.

[freedomgo]

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.

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.

[antsam]

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.

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

[khiholangkang]

There are already too many exchange lists that work together with Projeck Scam. I'm just confused by the IEO collaboration mechanism, does anyone here know the mechanism? like Vindax Or Exmarket and Probit. I have checked the exchange several times and instead offers a garbage project,is there really a fee or other requirements. and exchange should be able to protect investors

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

[RealMalatesta]

$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. 

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.

[Natalim]

There are already too many exchange lists that work together with Projeck Scam. I'm just confused by the IEO collaboration mechanism, does anyone here know the mechanism? like Vindax Or Exmarket and Probit. I have checked the exchange several times and instead offers a garbage project,is there really a fee or other requirements. and exchange should be able to protect investors

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

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.

[fzatni]

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...

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

[ashraf79]

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.

[Hypnosis00]

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.   

[cytpoway121]

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 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

[samcrypto]

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.

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.

[mr-coin]

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.

[antsam]

indeed still not to be trusted classy exchanges like coineal willing to make bad decisions for $ 80000 and it does not make sense. in my opinion this should be investigated again whether the news is true or not, because maybe some other exchanges will also do the same thing with coineal.

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

[VIP BTC]

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.