FatBTC is a centralized cryptocurrency exchange based in Hong Kong, the Mecca of digital asset exchanges, and is one of the many trading venues there. Although it was founded in 2014, for the time being, it failed to convince investors that it is a trusted, reliable and transparent cryptocurrency exchange. A part of FatBTC’s issues are faked trading volume, lack of information about the owners and the company behind the project, plenty of users complains on Reddit that remain unaddressed, very unresponsive and unstable website, etc.
On a first glimpse, FatBTC looks like a good option to choose, not only for those looking for an entry-level exchange but for experienced and more demanding traders as well. FatBTC offers trading of 65 cryptocurrencies, an e-wallet service and even its own token - FCNY. The case with the FatBTC-owned cryptocurrency is similar to the one of Tether (USDT) – it tracks and replicates the Yuan.
However, when you take a closer look under the surface, some worrying facts start to appear. For example, there is not much information about the company and its owners. It is quite annoying to see how the exchange’s website freezes when you try to explore more of the “About” section and have to go for a Google search instead. Even when you end up on the “Terms & Conditions” page, you won’t be able to find any valuable information. The few paragraphs there state that the exchange is owned by FatBTC Technology Company Limited, incorporated under the International Business Companies Act Chapter 270 of the Laws of Belize, Revised Edition 2000, of Belize City, Belize with a company number of 166,480. However, if you check the local corporate register for more information about the owning company, you won’t find anything. This should serve as a red flag for investors willing to use the exchange for trading or storage of their funds.
Another deeply concerning fact is the lack of strict KYC procedures. The registration of new users is extremely simple – all you need is an email where you will receive a verification code. Next, you are instructed to choose a password and voila - you are good to go.
Regarding security, the exchange uses the standard HTTPS protocol and employs a 2FA. According to the information on their website, FatBTC stores 95% of users’ funds in cold storage.
When it comes to customer support, FatBTC offers three communication channels – live chat, ticket system and social media (Telegram, Twitter, etc.). However, customers often report a lack of timely responses and week-long delays in handling platform-related problems.
At the time of this writing, there are no reported security breaches or known cases for hacker attacks. This does not mean the exchange is fully-secure though. It is also worth noting that, although it was founded in 2014, it was hard to find any valuable information prior December 2017.Read More