LyoTrade: Your money at stake due to dubious Crypto Exchange? (New Update 2023)
LyoTrade is a crypto exchange based in Georgia. It is a part of the “LyoPay” ecosystem and collaborates with the rest of their ventures including the Lyo Credit token.
‘LyoPay’ is a project that promises to bring various crypto applications under one umbrella to make cryptocurrency more accessible. However, the intentions are a matter of debate after several swindles.
LyoTrade claims to offer a ton of services to customers. Their homepage shows various features but doesn’t share any serious information about the company itself.
The platform offers futures trading, margin trading, stalking, crypto loans, and several more services.
Also, the company promotes its crypto token Lyo Credit on the crypto exchange. According to their fee structure, you can get a lot of rebates by buying the token if you’re interested in trading there.
However, I don’t recommend trading there. The following LyoTrade review will help you understand why I don’t suggest using this platform:
Is LyoTrade Licensed?
The first thing you should check before signing up with any crypto exchange is its license.
LyoTrade has a license from the British Virgin Islands, an offshore location extremely notorious for being a haven for scams.
This is a huge red flag.
Not every license is equal. Having a license from BVI doesn’t suggest that LyoTrade is a reliable company.
BVI has very weak rules and regulations which has made it extremely popular among forex and crypto scams.
Apart from BVI, LyoTrade has a license in Georgia, another offshore location. The company doesn’t have any licenses from reputed regulatory authorities.
You should avoid trading with offshore brokers because they don’t have to follow any strict rules that force them to act in your interest. Most offshore brokers turn out to be scams or criminal enterprises. Some scams that use this tactic include Uprofit Trader and FXRevenues.
Some examples of reputed regulators include FCA and CySEC. Both of them have a strict set of rules their licensed brokers must follow.
Unfortunately, LyoTrade doesn’t have any licenses from such authorities.
LyoTrade Trading Platform:
It seems like they use a proprietary trading platform. While you can view the platform instantly, I don’t recommend using such unknown platforms.
Most of the reputed exchanges use the reputed Binance or Kraken platforms for trade. However, LyoTrade resorts to using a trading platform of its own.
The reason why you should proprietary platforms is that they are unreliable and unverified. Most scammers use proprietary platforms because they let them rig the trades or steal directly from their clients.
In such cases, the platform wouldn’t place your trades in the actual market. Instead, it would show you a simulation of trades while making it seem you’re trading in the actual market.
Alternatively, the platform may show you a trade where you lost your entire deposit because the platform didn’t follow the stop order. In any case, you end up losing your investment.
Plenty of scam crypto exchanges have used this tactic.
Also, it’s worth mentioning that they offer a LyoTrade app for Android and iOS. However, I wasn’t able to test it out because I was afraid it would contain malware.
The trading app doesn’t have any reviews on Google Play or the App Store. Hence, I wouldn’t recommend downloading it.
If you’re really interested at least wait until it has several reviews talking about its functionality.
Seeing the professional record of this company, I would advise against installing the LyoTrade app.
What are LyoTrade Crypto Loans?
One of the services they offer at LyoTrade is instant crypto loans. Apparently, the users of this crypto exchange can set their assets as collateral and get stablecoins in exchange.
The company claims to offer loans at a monthly interest of around 1-2% which seems extremely lucrative.
Also, the minimum loan amount is 95 USDT.
That’s not all.
The loan term is unlimited.
Surely, something is wrong here. The company even promises to give you the returns your collateral generates when you have taken out a loan from them.
The whole deal seems unrealistic. It’s clear that LyoTrade is using crypto loans as a means to get hold of its clients’ assets.
After all, it makes you wonder how the company makes money from the loans it gives out. 1% monthly interest isn’t much, especially when you’re not charging anything more.
That’s why you must be aware of the company’s history, which is not very good.
As I mentioned earlier, LyoTrade is a part of the LyoPay ecosystem, which itself is a Ponzi scheme launched by WeWe Global.
But before we get into the shady details of why LyoPay is a scam, you should know about the shady provisions of LyoTrade:
LyoTrade and LyoCredit: The Signs of a Scam
According to their fee structure, you would need to pay 0.20% maker-taker fees on every transaction. However, if you pay with LyoCredit, you would only need to pay 0.15%.
While it’s natural for a company to promote its token, LyoTrade’s case is special.
The company doesn’t have any notable licenses and its parent organization is notorious for being a scam.
It wants you to invest in its crypto token so it can get money directly from you.
The moment you buy their token, you have fallen prey to their scam. Their goal is to get as much money from its victims as possible.
A 0.5% difference in maker-taker fees can be extremely lucrative for customers. However, you should avoid buying LyoCredit from LyoTrade, because of the track record of the company.
I have explained it in detail in the next section of this LyoTrade review:
LyoPay Review: The Backbone of the Scam
LyoPay is the primary firm around which the entire ecosystem revolves. LyoTrade is a part of that very same ecosystem.
The parent company promises customers 300% ROI within 16 weeks. According to their claims, the company will pay you in LyoCredit tokens.
However, there are multiple tiers in the scheme, following a pyramid structure.
Your investment size would determine how much returns you can get and and the tiers start from 100 EUR and go up to 100,000 EUR.
LyoPay is a venture of WeWe Global. The original name of their token was WeWeX but it collapsed.
As a Ponzi scheme, the company focuses on getting as many investors as possible. It pays its previous investors through the money it receives from new ones. However, as soon as the recruitment starts slowing down, the money stops.
The only people who lose money in this situation are the investors. Founders of the company include Luis Goes and others.
After going through the above points, it’s clear that LyoTrade is not a legitimate trading platform. It has horrible trading conditions and its services have too many red flags.
Furthermore, the parent organization of this crypto platform is notorious for being a scam.
Due to these reasons, I don’t recommend trading with them.
It would be best for you to find a different service provider.
If you know someone who is interested in LyoTrade or LyoPay, you can share this review with them.
Alternatively, you can check out these resources to learn more about the scam: