CoinDeal Review – The Downfall of a Crypto Exchange Platform
Our CoinDeal review tackles into a somewhat tragic past of this platform that ceased its operations on 19th Feb, 2023. What at first started off as a profitable exchange business eventually became a target of a swindling group of thieves that were eventually brought to justice.
However, CoinDeal seems to have never recovered from their brand’s credibility being deeply shaken. It was all a result of the affair with the blockchain scam that has misused the CoinDeal’s intellectual property.
SEC has declared that CoinDeal, as a crypto exchange platform, had nothing to do with the fraudulent activities of the masterminds behind the blockchain scam. CoinDeal has still decided to terminate their engagement in the crypto exchange business. Let’s see how they used to operate and what we found suspicious in the whole story.
|Blacklisted as a Scam by:||N/A|
|Headquarters Country:||Malta (previous); SVG (current)|
|Supported Platforms:||Web trader|
|Cryptocurrencies:||Yes (Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Dash, TRON)|
|Types of Assets:||Crypto|
|Free Demo Account:||Not available|
|Accepts US clients:||Yes|
What Is CoinDeal?
CoinDeal, as a cryptocurrency exchange platform, was first launched in March 2018. It quickly gained a certain positive reputation and popularity in European countries because of their reliability and a range of tools and instruments.
In 2020, CoinDeal declared to be the first company that has obtained a Class 4 Virtual Financial Assets (VFA) License in Principle Approval from the Malta Financial Services Authority (MFSA). Everything was looking up for this crypto business.
The mentioned license, though, was valid for 3 months, but CoinDeal didn’t extend it. Instead, they’ve moved their parent company to SVG and were registered with FSA on Dec 15th, 2020. The only reason we managed to dig out was regulatory rules in EU and Malta changing during that time and CoinDeal not fitting in with them.
Suspicious as it sounds, moving to SVG had definitely given the company more freedom in their conduct. FSA is an offshore regulator with very loose standards, especially in comparison to Tier 1 licensing institutions. If CoinDeal was so clean and innocent, they’d be more transparent about this change. This has led us to believe they either have things to hide or would rather enjoy more space for improvisation under less strict regulatory framework.
Either way, CoinDeal was pretty successful until the beginning of 2023, when the SEC announced the names of the persons behind the crypto scheme that had the same name. It was a group of quite a few people and a chain of firms that have scammed thousands of people and were fined with a huge amount of money.
Although CoinDeal had nothing to do with it, it has destroyed their reputation beyond repair. So, as of Feb, 2023, they have announced not to accept new clients anymore and were looking into possibilities of suing the culprits for intellectual property theft.
CoinDeal Reviews and Comments
General opinions of traders on this company are average or leaning towards more positive. We can’t say with an unmoving certainty that the ratings are overly good or bad, but just average. Here are what some of the investors think of CoinDeal as a firm altogether:
“I do not recommend CoinDeal for those who like to work with new currencies due to the limited number of instruments. However, all assets here are liquid, and the trading terminal works like a clock. The conclusion is also hassle-free. In general, CoinDeal is not the most functional option, but rather a standard one.”
“I planned to deal with cryptocurrency seriously, and on CoinDeal I was mastering the basics of trading. For this, the exchange suited me perfectly because there are basic assets, the commissions are adequate, there are no problems with the platform, and the company is even licensed. You just don’t need more to get started. But to try scalping, I have already contacted brokerage companies where the execution speed fosters scalping.”
Countries of Service
CoinDeal has first started big in Europe. Despite that, they have expanded their business to other countries quite fast. Perhaps because of their bigger buying power, perhaps not, but English speaking traders were the most common customers here. Here’s a list of the countries where CoinDeal was most popular:
- United States
- United Kingdom
What Is CoinDeal’s Range of Instruments?
As any crypto exchange platform, CoinDeal specialized in digital currency exchange. They were quite appreciated among the investors, especially because of the wide range of instruments offered. Unlike fake crypto exchanges, and by that we mean Worldvex, this exchange was actually true to their word about the instruments offered.
There’s a vast number of different crypto trading services providers, all because of the mass-expansion of crypto coin investing. So, each crypto trader has their preferred digital currency they like to buy and sell.
The most popular digital coins that CoinDeal used to provide are Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Dash, TRON, Shiba Inu, Polkadot, Binance Cash, Avalanche, Ripple and several dozen other ones.
Without being able to open a new account at CoinDeal, we can’t say anything positive or negative about the platform itself. Because the dealer has shut down their services and doesn’t accept new clients anymore, we were unable to register an account. Such a turn of events has prevented us from testing their platform.
The traders’ opinions suggest the CoinDeal platform was suitable for beginners because of its simplicity and comprehensiveness. However, some mention it not being adequate enough and competent for scalping.
The purpose of the mobile trading app is allowing investors to manipulate their trades while not being tied to one desktop workstation. The point is to help all investors be able to trade on the go and wherever they are. Typical unregulated brokerages, like Keystone Market for example, do not have the capacity to develop their own stand-alone app.
CoinDeal, on the other side, has constructed their trading proprietary app for mobile devices which was available in Google Store, Apple Story and APK Downloader. Sadly, we couldn’t run it either, as the download links went inactive the moment the company decided to end their exchange activities.
Is Withdrawing Profits Possible?
CoinDeal, being an offshore platform, could impose certain withdrawal conditions that Tier 1 regulations otherwise wouldn’t allow. It is, after all, one of the major disadvantages of trading with offshore entities. Although the firm is pretty clear about the deposit fees not being charged, there are withdrawal fees that depend on the crypto currency you choose.
Generally, these fees aren’t overly high. In a broader picture, they’re quite average, as there are much cheaper brokers to deal with, but there are far more expensive, offshore ones as well.
The source of our concern is the absence of a premium license, which in all circumstances protects traders far better than an offshore one. We’d always recommend you to choose a heavily regulated broker, firm, platform, or whatever, because they’re always more safe and reliable. Especially pertaining to payouts and fees.
Problems With CoinDeal? – Let Us Hear Your Story
CoinDeal currently has an announcement about encouraging their customers to withdraw investments if they think they’re not safe with this firm. If you’re having problems with processing your payouts or the company in question doesn’t tend to your inquiries, feel free to contact us.
If you reach out to us promptly, we can advise you on how to recover your funds as fast as possible, or start the chargeback process. Whatever your story is, we’re here to listen. Whether positive or negative, any feedback is appreciated and it helps us work on spreading the word about bad service providers.
Is CoinDeal Legit or Scam?
CoinDeal is regulated by SVGFSA, but it’s still an offshore license so it’s a less reliable one than a premium, Tier 1 regulation.
Does CoinDeal Offer a Demo Account?
At the present time, the site doesn’t allow newcomers to open new accounts because the firm has decided to shut down their services.
Are my funds safe with CoinDeal?
As mentioned, the company is only operating under an offshore license. It isn’t as safe and meticulous in the security measures provided as Tier 1 regulation owners. So, we’ll always advise you to choose a fully regulated service provider instead.