Pionex review – 4 issues you should know about Pionex

Pionex review – 4 issues you should know about Pionex – Throughout this review of Pionex, we reveal problems that we encountered while researching this cryptocurrency platform.

What is Pionex

Pionex review – 4 issues you should know about Pionex

Pionex is an exchange for cryptocurrencies. It’s a cryptocurrency exchange where you may trade crypto tokens on your own or use the built-in robots to trade for you.

There is also a unique investment instrument known as Dual Investment, which simplifies speculating and generates huge annual returns in the hundreds of percent.

Pionex boasts that it holds a FinCEN license in the United States, implying that it is trustworthy. Is Pionex, however, a legitimate cryptocurrency exchange?

The issues with Pionex

When we were studying Pionex, we came across a few concerns that, although not necessarily red flags, raised our suspicions. These are our problems with Pionex.

FinCEN license fiction

Pionex states on its blog that it has been “given” the MSB license by the US Financial Crimes Enforcement Network, and that it is the first cryptocurrency exchange with in-built trading bots to have this license.

This means that Pionex was subjected to FinCEN investigation and was only granted the MSB license after the agency determined that it is a trustworthy exchange. The Pionex post offers that perception.

However, the truth is a little different. FinCEN is not an investment services regulator; it doesn’t look at what the exchange offers its customers or if it uses robots, for example.

In actuality, as a business, you just submit your information to FinCEN, who then registers you in their public database.

On its website, FinCEN explains the process. However, we inquired about Pionex with the FinCEN to ensure that it was not singled out for extra examination.

The reaction we received is seen in the image below. It confirms that the FinCEN register only contains information provided by Pionex and that the FinCEN makes no attempt to validate that information.

So when Pionex says it was “given” a license by FinCEN, it’s exaggerating because it didn’t have to go through any kind of inspection; all it had to do was submit some data to a database and that was it.

Pionex review – 4 issues you should know about Pionex

Structured Dual Investment – No proper risk disclosure

Another difficulty we have with Pionex is the Dual Investment investment package. The exchange displays massive gains for this investment product, up to 400 percent APR in some situations.

Pionex further claims that the only risk and uncertainty with Dual Investments is the settlement currency, while simultaneously claiming that the earnings are derived via return swaps without describing what they are.

As a result, a less experienced user may believe that a Dual Investment is a guaranteed profit with a large return.

However, if you look at the settlement calculator closely, you’ll notice that it might cause you to lose money if the price swings dramatically in the incorrect direction.

Pionex, in our opinion, should do a better job of communicating this product, including the hazards involved.

Dual Investments could also be classified as derivatives, which are regulated. We attempted to get an explanation from Pionex regarding how the product works, but they were unable to do so.

So far, we don’t have enough information to draw any conclusions, but we suspect it’s a derivative for which the exchange would require a license.

Pionex review – 4 issues you should know about Pionex

The robots

Let’s talk about Pionex robots while we’re on the subject of irresponsible behavior. The fact that you can use a Martingale robot is a stunning fact.

Because we have never met a successful trader or investor who believes that using any version of Martingale in trading is a good idea. When trading Martingale, it’s only a matter of time before a series of market moves in one direction wipes out your entire account.

We believe that Martingale should not be in the toolkit of any professional trader, hence Pionex’s inclusion of it is surprising.

Pionex review – 4 issues you should know about Pionex

SEC registration

We discovered the Pionex SEC registration during our study. Pionex Investments is not the same as Pionex PTE Ltd., which appears to administer the exchange and is registered as an investment adviser with the SEC.

Pionex Investments explains in its brochure that it creates trading robots, using the grid and Martingale bots as examples.

Pionex Investments does not have any retail clients, according to the brochure, which also notes that the company may be reached through a pionex.com support e-mail address.

Why is there a distinct Pionex Investments firm from New Jersey building robots and utilizing the [email protected] address but denying it has retail clients and so claiming it is not running the pionex.com exchange?

Who runs the show?

The last question we needed to answer was who is in charge of the Pionex exchange. We couldn’t discover that information on its official website.

The MSB registration belongs to Pionex PTE Ltd. of Singapore, according to FinCEN’s website. Although a Pionex PTE Ltd. corporation is registered in Singapore, there is an issue with its address.

The Pionex company registered in Singapore is meant to be located on Chulia Street, whereas the Pionex firm registered with FinCEN is claimed to be located on Paya Lebar Road. We reviewed the map and discovered that these are two separate sites. This poses an interesting question. Is this the same business?

Pionex was previously known as Bituniverse PTE Ltd, according to the Singapore companies record. Today, Bituniverse (bituniverse.org) is a clear scam, offering crypto robots with a claimed APR of 100% and phony testimonials.

Bituniverse was previously offered on Pionex, implying a connection between the two.

There’s also Pionex Investments, a New Jersey-based firm that creates robots for the Pionex exchange. Pionex Inc. is based in Delaware, and Pionex Limited is based in Colorado, adding to the confusion.

Overall, the Pionex cryptocurrency exchange is perplexing, and it is unclear who runs it.

Final Thought Pionex review

We have concerns about Pionex’s overstatement of its FinCEN registration, understatement of the dangers involved with its goods, and the fact that the exchange’s corporate structure is unclear. Pionex review

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