The Power Trade Review Analyzes This Offshore Crypto Exchange
Our Power Trade Review is meant to shed more light on this mysterious Power Trade crypto exchange. In order to accomplish that, we had to do some digging into PowerTrade’s history.
Right off the bat, we will tell you that we are really suspicious about this exchange, which is reflected in our critical assessment and approach to reviewing Power Trade. Please read our analysis before investing in Power Trade.
|Exchnage status:||Offshore Exchange|
|Regulated by:||No Regulation|
|Blacklisted as a Scam by:||N/A|
|Owner:||Power Fintech LLC|
|Cryptocurrencies:||Yes – BTC, ETH, PTF (+25 alternate coins)|
|Types of Assets:||Crypto|
|Accepts US clients:||Yes|
What Is Power Trade?
Before we get into the analysis, it is important to explain the origins of this company. The founder of this exchange is Mario Gomez Lozada, a seasoned veteran in the trading industry. He also co-founded another crypto exchange, Liquid.com.
In April 2020, Liquid announced that Gomez Lozada had parted ways with his partners and went solo. In November of the same year, he established his own venture – the Power Trade exchange.
This exchange is operated by Gomez Lozada’s company called Power Fintech LLC, incorporated in the offshore domain of Saint Vincent and the Grenadines (SVG).
Power Trade’s Regulation
We checked the register of SVG’s Financial Services Authority (FSA) and found the company there. However, it should be noted that the FSA regulates only the banking sector in the country, and not anything else related to trading.
Basically, this firm is an unregulated crypto exchange, just like Liquid. If you look at the latter’s reviews, you will see that the vast majority of them are negative, i.e. complaints. Traders who trusted Liquid ended up having withdrawal issues and frozen accounts.
This is definitely something to keep in mind if you are still interested in Power Trade. Personally, we do not recommend any unregulated exchange or broker, such as Blackchain Solution for instance.
Our choice would always be a company that is properly regulated by a reputable financial market authority such as the FCA (UK), SEC (US), BaFin (Germany), ASIC (Australia), IIROC (Canada), MAS (Singapore), etc.
Reviews and Comments About Power Trade
There are not many Power Trade reviews. We found only a couple of them on producthunt.com, 14 to be precise, and they are all positive, i.e. the traders recommend this exchange.
However, these reviews are suspicious. Most were posted around the same time – April 15-18, 2021. There are only two after this period, which is usually an indication that the first wave of reviews is fake. Power Trade’s Trustpilot page is empty.
To reiterate, Liquid, also an unregulated exchange, received a lot of backlash and negative reviews. You must be cautious with company like this.
Countries of Service
After doing some research, we managed to find out where Power Trade was active. Here is the list of countries where the exchange’s users reside:
- United States;
- United Kingdom;
Needless to say, all of these domains are off-limits to unregulated entities such as Power Trade or moxium. If we had to guess, US traders are the main targets of Power Trade.
Power Trade’s Range of Offerings
Power Trade offers Bitcoin, Ethereum and 25 alternate coins. As for contracts, users have the following at their disposal:
Aside from these, the company also offers its own unique token – the PowerTrade Fuel token (PTF). According to the exchange’s website, the PTF “is a DAO token which governs the treasury that covers PowerTrade traders in the unlikely event of a black swan.”
Let’s elaborate – a black swan is an unpredictable market event beyond normal expectations, which could have terrible consequences.
Per Investopedia, a DAO (decentralized autonomous organization) is “is an entity structure in which tokenholders participate in the management and decision-making of an entity. There is no central authority of a DAO; instead, power is distributed across tokenholders who collectively cast votes.”
DAOs are legally recognized in only a couple of US states (Wyoming, Tennessee, Vermont, Utah). Although their regulation is not yet “well established”, DAO entities still have to be registered with the US Securities and Exchange Commission (SEC).
As you already know, Power Trade is not, which is why the DAO concept is risky. Some sources indicate that the PTF’s liquidity is not great, and traders may face issues.
Available Software, Mobile App
Power Trade launched a mobile app in 2021, “an easy-to-use crypto options trading platform on mobile and web, enabling traders to maximize ROI through an intuitive interface that provides better prices and lower margin requirements.”
This app is available for both Android and iOS systems and enables users access to the crypto exchange. There are no reviews of this app on Google Play.
Withdrawing Profits From Your Account
Power Trade’s withdrawal policy states that users may withdraw available virtual assets from their accounts if their withdrawal request exceeds the minimum withdrawal requirement as determined by PowerTrade from time to time and meet the minimum margin requirements.
However, these requirements were not specified on Power Trade’s website. The payment methods were not disclosed either, but we assume that all deposits and withdrawals are made via crypto.
The Terms of Service also mentions active fees and again, not disclosing the exact amounts. Such a lack of transparency is a huge disadvantage of Power Trade.
How Can I Get Help for Filing a Chargeback Case?
To sum up, Power Trade is a dubious and unregulated offshore crypto exchange. We do not recommend this exchange.
If you have issues with Power Trade, please notify our team about it. We are willing to help you with the chargeback process. If need be, our team can trace crypto transactions using CipherTrace. Book a free consultation today to solve all your issues.
If you need help with chargebacks, book a free consultation with our chargeback specialists who will help you to regain your money.
How Trusted Is Power Trade?
Power Trade is not regulated. Although there are no complaints, it doesn’t mean that issues are impossible.
Can I Trade Crypto and CFDs With Power Trade?
This company is a crypto trading exchange. There are no CFDs on Power Trade.
Are my funds safe with Power Trade?
No really. Power Trade is an unregulated exchange, which means that your funds are probably not segregated.