YoBit is a centralized cryptocurrency exchange, founded in 2014 by a group of developers and crypto-enthusiasts.
Although it is not a new name in the crypto world, it is hard to find any meaningful information about the exchange itself and its owners. In this regard, it is quite unique, as the exchange remains one of the very few cryptocurrency trading venues which doesn’t provide any information regarding where it operates from, who owns it or who forms its team. You won’t find any information on its website about where the platform is registered either. Its website resembles an anonymous trading platform.
In 2017 it was quite easy to list cryptocurrency on YoBit and it caused a long list of unknown altcoins (more than 8000 for that time). Many of those altcoins were pumped and dumped on the exchange by the community or its founders. YoBit never responded to a Business Insider investigation about whether or not the exchange was aware of the pump-and-dump schemes taking place on their platform.
At the start of 2019, on January 9th, there was a 51% attack on the Ethereum Classic network which resulted in 130,417 ETC being stolen from YoBit users’ wallets. However, a few days later, on January 15th, the exchange tweeted that the hacker had returned 94% of the stolen assets and kindly thanked them.
YoBit’s website also offers a feature called “Dice” which is basically a game of dice. This gambling is complemented by the InvestBox option which is described as an investment tool that makes it possible to earn up to 10% from the cryptocurrencies deposits daily “without any efforts.” The exchange helps founders of unknown low-cap coins promote their tokens by staking rewards.
The fact that YoBit is an unregulated exchange which lacks background information (intentionally or not) raises a red flag for any investors considering whether to choose this trading venue.
YoBit is registered within a closed offshore zone in Panama that helps them keep the anonymity of users and their funds. So the exchange does not require that traders complete KYC verification.Read More