The cryptocurrency exchange LyoTrade is based in Georgia. It is part of the “LyoPay” environment and works with all of their other projects, like the Lyo Credit token.
LyoTrade says that it can help people with a lot of different things. Their site shows a few different features, but it doesn’t say much about the company itself.
The site lets people trade futures, trade on margin, stalk people, get crypto loans, and do a lot more.
Also, the company advertises its Lyo Credit cryptocurrency token on the cryptocurrency market. Based on how they set their fees, if you want to trade there, buying the token will save you a lot of money.
But I don’t think it’s a good place to trade. This LyoTrade review will explain why I don’t think you should use this platform:
Is LyoTrade License?
Before you join a crypto exchange, the first thing you should do is look at its license.
LyoTrade has a license from the British Virgin Islands, which are known for being a haven for scams and are located outside of the United States. This is a very big warning sign.
Not all licenses are the same. Even though LyoTrade has a license from BVI, that doesn’t mean it’s a good business. BVI’s rules and laws are very lax, which has made it a very popular place for forex and cryptocurrency scams.
LyoTrade also has a license in Georgia, which is also an offshore place. The company has no licenses from reputable regulatory bodies.
You shouldn’t trade with offshore agents because they don’t have to follow any rules that force them to act in your best interest. Most offshore agents end up being scams or illegal businesses. Some scams, like Uprofit Trader and FXRevenues, use this method.
Some well-known authorities are the FCA and the CySEC. Their approved brokers must follow a strict set of rules for both of them. LyoTrade doesn’t have any rights from these organizations, which is a shame.
Trading tool for LyoTrade
It looks like they use a trading tool that they own. Even though you can see the platform right away, I wouldn’t use such an unknown platform.
Most of the well-known marketplaces use the well-known platforms Binance or Kraken to trade. LyoTrade, on the other hand, has to use its trading tool.
You shouldn’t use proprietary systems because they are not reliable and can’t be checked. Most scammers use proprietary platforms because they let them fix trades or steal straight from their clients.
When this happens, the site won’t put your trades on the real market. Instead, it would make it look like you were trading on the real market by showing you a simulation of trades.
On the other hand, the platform may show you a deal where you lost your entire deposit because the platform didn’t follow the stop order. In any case, you lose what you put into it. This is something that a lot of fake crypto companies have done.
NeoCrypto and Tiger Trade Copy, for example, have gotten a lot of complaints from customers about how they rigged their deals. Because of this, they have a very bad reputation in the market.
They also have a LyoTrade app for Android and iOS, which is worth noting. But I couldn’t try it out because I was afraid it would have bugs on it.
There are no reviews of the trading app on either Google Play or the App Store. So, I wouldn’t tell you to download it. If you’re interested, wait until at least a few reviews have been written about how it works.
Based on how well this company has done in the past, I would not recommend installing the LyoTrade app.
What are Crypto Loans from LyoTrade?
One of the things LyoTrade does is give instant crypto loans. Users of this cryptocurrency exchange can use their assets as security and get stablecoins in return.
The company says it can give loans with interest rates of 1-2% per month, which seems like a very good deal. Also, the least you can borrow is 95 USD.
Not only that. There is no end date for the loan. There must be something wrong. When you get a loan from the company, they even promise to give you the money that your collateral makes.
The whole thing doesn’t make sense. LyoTrade uses crypto loans to get its hands on the assets of its clients. After all, you have to wonder how the company that gives out loans makes money. 1% interest per month isn’t much, especially if you aren’t charged anything else.
Because of this, you need to know the past of the company, which is not very good. As I said before, LyoTrade is part of the LyoPay environment, which is a Ponzi scheme started by WeWe Global.
However, before we delve into the murky specifics of why LyoPay is a fraud, you should be aware of the dubious clauses of LyoTrade:
How to Tell If LyoTrade and LyoCredit Are a Scam?
Based on how they set their fees, you would have to pay 0.20% maker-taker fees on each deal. But you would only have to pay 0.15% if you paid with LyoCredit.
It’s normal for a business to push its token, but LyoTrade’s case is different. The company doesn’t have any licenses that are worth mentioning, and its parent business is known for being a scam.
It wants you to buy its crypto token so that it can get money from you directly.
As soon as you buy their ticket, you fall for their trick. Their goal is to get as much money as possible from the people they hurt. Customers can make a lot of money from a 0.5% difference in maker-taker fees. But you shouldn’t buy LyoCredit from LyoTrade because of how the company has done in the past.
In the next part of this LyoTrade review, I describe it in more detail:
Review of LyoPay: How the Scam Works
LyoPay is the main company that the whole ecosystem swirls around. LyoTrade is also a part of this community. The company’s parent offers customers a 300% return on investment in 16 weeks. They say that the company will give you LyoCredit coins as payment.
But the plan is set up like a tower, with more than one level.
How much you can get back depends on how much you put in. The tiers start at 100 EUR and go up to 100,000 EUR. WeWe Global is the company behind LyoPay. WeWeX was the name of their currency at first, but it failed.
As a Ponzi plan, the company’s main goal is to get as many people to invest as possible. It pays back its old investors with money from new investors. But the money stops as soon as there aren’t as many new people coming in.
Investors are the only ones who lose money in this case. Luis Goes and other people started the business. Ponzi scammers have used these kinds of scams to steal from thousands of investors. Justin Halladay and Monir Islam are two good examples.
Conclusion
After reading the above, it’s clear that LyoTrade is not a real trading site. It has terrible business conditions, and too many red flags are up about its services.
Also, the group that runs this cryptocurrency platform is known for being a scam. Because of these things, I don’t think you should trade with them.
You should probably find another service provider. You can share this review with someone interested in LyoTrade or LyoPay.
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