Cryptobits.ltd Review This Investment Program is Unsustainable!

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Crypto Limited Review – is cryptolimited.net scam or good forex broker?

Trading Accounts and Conditions

Investment plan Min. deposit
Beginner $1 000 1.5%
Standard $20 000 2.0%
Advance $50 000 2.5%
Business $100 000 3.0%

Crypto Limited presents itself as a New Zealand-based company engaged in forex and binary options trading, as well as real estate management. Furthermore, the broker says to be “introduced by the government of New Zealand” as a way for investors to avoid Ponzi schemes, fraud, money laundering and scams – a claim which is simply ridiculous. Not only that no government hasn’t introduced, nor licensed Crypto Limited, but they have been blacklisted as potential scammers by the FMA.

Also, note that this broker doesn’t appear related to TheCryptoLimited, despite the similarly sounding names.

Crypto Limited Advantages

Our custom is to list any possible advantages about a broker in the beginning of our reviews, however, here with Crypto Limited we have no choice but to leave this section empty.

Crypto Limited Disadvantages

Misleading company info, blacklisted by the FMA

Click on the image to view full size.

Crypto Limited provides an address in New Zealand, as well as some “certificate number”. Yet, we found out that NZ’s Financial Markets Authority (FMA) has included this broker in its warning list. The regulator expressed concerns that the broker’s website contains false and misleading information that even includes NZ government and Prime Minister. What is worse, the FMA stated that the registration details mentioned on cryptolimited.net website belong to an entity, with which this broker isn’t related in any way.

In other words, Crypto Limited is a “a clone firm” that deliberately tries to mislead investors that they are a regulated broker, which by itself is an indication that we are dealing with scammers. No wonder the FMA has also received a complaint from an investor who has difficulties in accessing the funds deposited with cryptolimited.net.

Not enough trading info, no real platform

As a matter of fact, Crypto Limited has only mentioned the initial deposit amounts required for each of the purported account types it offers, as well as some daily returns. Its website contains no information whatsoever on trading costs such as spreads, roll over, commission fees, etc., Demo accounts aren’t available either. Such lack of transparency of a broker’s services and pricing is also very typical of scammers, not to mention the unrealistic daily profits mentioned

So, we opened a live trading account with Crypto Limited (without depositing any money), so we could access their “trading platform”:

lick on the image to view full size.

As you can see from the above image, this is no trading terminal, but only a dashboard with some third-party quotes. Trading isn’t enabled, you may only deposit. So, it’s quite obvious what are in fact the fraudsters operating this brand doing.

Absurdly high initial deposit

Speaking of deposits, we have to mention that the deposit required for trading on Crypto Limited’s most basic account type requires an investment of $1 000. This is an absurdly high amount. That said, we wouldn’t advise you to invest a single buck with these con-artists.

Trading volume requirement for withdrawals

On top of all disadvantages we already listed, this broker requires that its clients trade certain volumes in order to be able to withdraw. That is, in case Crypto Limited allows withdrawals in the first place. Many scammers don’t, and the only way to get your money back is via chargeback.

Click on the image to zoom in,.

Conclusion

Crypto Limited is a dubious broker that was blacklisted by the financial authorities in New Zealand as a clone firm and a potential scammer. Our investigation on the matter only further confirms that suspicion, so if you value your money, don’t invest with those con-artists.

Unfortunately, the world of online trading is full of frausdtars seeking to swindle misinformed traders on every turn. This is why regulation is so crucial as it is the most clear-cut indicator of legitimacy and the best trust-creator in the business. If you are looking for a licensed and reliable brokerage operating in New Zealand, check out the below link.

Once again, here are the disadvantages of Crypto Limited that make us almost certain it is a scam broker:

Pros Cons
None Limited company info, no financial regulation
Blacklisted by the FMA of New Zealand
No real platform
Trading volume requirement for withdrawals
Absurdly high initial deposit, unrealistic returns promised
Broker Advantages

FXTM a regulated forex broker (regulated by CySEC, FCA and FSC), offering ECN trading on MT4 an MT5 platforms. Traders can start trading with as little as $10 and take advantage of tight fixed and variable spreads, flexible leverage and swap-free accounts.

XM is broker with great bonuses and promotions. Currently we are loving its $30 no deposit bonus and deposit bonus up to $5000. Add to this the fact that it’s EU-regulated and there’s nothing more you can ask for.

FXCM is one of the biggest forex brokers in the world, licensed and regulated on four continents. FXCM wins our admirations with its over 200,000 active live accounts and daily trading volumes of over $10 billion.

FxPro is a broker we are particularly keen on: it’s regulated in the UK, offers Metatrader 4 (MT4) and cTrader – where the spreads start at 0 pips, Level II Pricing and Full Market Depth. And the best part? With FxPro you get negative balance protection.

FBS is a broker with cool marketing and promotions. It runs an loyalty program, offers a $100 no-deposit bonus for all new clients outside EU willing to try out its services, and an FBS MasterCard is also available for faster deposits and withdrawals.

FxChoice is a IFSC regulated forex broker, serving clients from all over the world. It offers premium trading conditions, including high leverage, low spreads and no hedging, scalping and FIFO restrictions.

HotForex is a EU Regulated broker, offering wide variety of trading accounts, including Auto, Social and Zero spread accounts. The minimum intial deposit for a Micro account is only $50 and is combined with 1000:1 leverage – one of the highest in the industry.

Crypto Research Claims Ethereum PoS Unsustainable, Vitalik Hits Back

For the longest time, the developers behind the Ethereum (ETH) blockchain have had their eyes set on Proof of Stake (PoS). Serenity, as core developers call the iteration of their brainchild based on staking rather than mining, is slated to come to fruition over the coming years.

But, some, including those predisposed to be enamored Bitcoin’s relatively simple Proof of Work (PoW) mechanism, which harnesses deflation, difficulty adjustments, and the sheer power of computational processes, have claimed that this alternative consensus medium may post all but solid results.

Related Reading: Crypto Developments Aplenty at Devcon4, Ethereum 2.0 Among Them

Staking On Ethereum May Not Be Economically Viable

After a number of failed attempts, due to bugs and consensus misalignment, the fabled Constantinople blockchain upgrade went live last week. Constantinople, for those who missed the memo, introduced changes to Ethereum’s virtual machine that reduces smart contract gas consumption (lower fees), along with a -33% shift in how much Ether is issued each block. Although this blockchain upgrade had roots in bolstering the short-term scalability prospects of Ethereum, Constantinople moves the project one step closer to the advent of Serenity.

0/ We’re excited to release our “Entering The Ethereum’ report. Read it in full here! https://t.co/14Dg1vWKzz

But, the New York-based Delphi Digital recently expressed concerns about the viability of staking, especially in the context of current market conditions, which have drastically depressed the value of ETH.

The research boutique, which recently joined hands with 51Percent and accepted Bitcoin bull Anthony Pompliano as a board member, broke down how the planned PoS model, especially the cryptoeconomics facet, could pan out in real life.

Delphi’s team, headed by Tom Shaughnessy, note that the proposed yields offered through staking “look low,” even without factoring in operational expenses that come with running a server. The proposed yields offered to validators, which will be equivalent to miners on the Serenity chain, will be 18.19% APR at most — this being the case only if there is 5,000,000 Ether staked, even as transaction fees spike through the roof. More conservatively and representative of real life, validator yields will likely be well under 5%, possibly even as low as 2% to 3%. On the matter of the economic sustainability of these returns, the researchers remarked:

“It’s clear that not only will network fees (gas spent) be the primary driver of higher validator yields, but that the reward structure is not economically sustainable without significant growth in those fees.”

The American group then goes on to break down an Ethereum validator’s net yield, factoring in the expense of running hardware or a cloud server (which introduces centralization) for validation. They note that at current prices levels, staking will be wildly unprofitable, maybe even more so than the levels that capitulating Bitcoin miners faced in December of 2020. Mythos Capital founder Ryan Adams notes that per Delphi’s chart, at $100 per ETH (effectively current levels) and with 400 ETH in daily network fees, the annual yield would be -26%. Ouch.

In a number of other scenarios laid out in the chart, prospects for validators seemed just as dire. Save for scenarios where Ether is booming and network fees are high, which seems unlikely considering the moves to decrease gas usage across the board, validators would be losing their hard earned money in exchange for processing Ethereum transactions. Thus, Delphi determined:

“We absolutely believe that continued Ethereum adoption and building on the platform will help the fee market develop, but it becomes a bit of a chicken or the egg situation. A diversified and profitable validator network is crucial for the security and the longevity of the network, but that’s unattainable under the currently proposed specs without significant network fees.”

Vitalik Turns The Tables

As Delphi was open to criticism in response to their caution, commentators quickly threw their hats in on the matter. Even Vitalik Buterin, the Russian-Canadian coder extraordinaire behind the project, had something to say on the matter. Buterin, who has arguably become Ethereum’s version of Satoshi Nakamoto, notes that the harrowing case that Delphi laid out is “very unlikely to be true.”

That seems very unlikely to be true. That implies that 1m ETH/year rewards cannot pay for a few hundred times the ethereum’s current blockchain load times a

256 overhead factor. The latter cost is comparable to the operation of the current chain…

— Vitalik Non-giver of Ether (@VitalikButerin) March 8, 2020

He claims that such statistics imply that one million Ether issued each year “cannot pay for a few hundred times the Ethereum’s current blockchain load times at a

256 overhead factor.” Buterin adds that he isn’t comfortable with making a “‘moon or bust’” shot, as he sees worlds where Ether will remain at $100 but could claim that #1 seat on the cryptocurrency rankings, meaning that Serenity will need to operate at such low (even negative) margins.

But Delphi was adamant that changes should be made to the validator payout structure, as they feared that a future collapse in Ether based on a PoS-backed chain could create a negative feedback loop, thus producing an environment that is far from secure. They specifically drew attention to a model where early revenues on Serenity would be centered around block rewards, rather than networks fees. They claim that this will give a “significant buffer” for validators, as the fee market will need to develop over a number of years.

Nick Chong

Since 2020, Nick has shown interest in Bitcoin and cryptocurrencies. He has since become involved in the industry as a full-time content creator, working for NewsBTC, Bitcoinist, LongHash, among other outlets. Aside from covering.

7 Crypto Firms Targeted by 11 Lawsuits in New York

Seven crypto companies have been targeted by 11 lawsuits that were filed in a New York federal court on April 3.

The suits were filed by Roche Freedman — the same law firm representing the estate of the late Dave Kleiman in the ongoing dispute with self-proclaimed Satoshi Nakamoto , Craig Wright.

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