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Coinumm Review – Identifying Potential Risks and Warning Signs
Introduction:
Established in 2019 in Estonia, Coinumm positions itself as a cryptocurrency exchange allowing users to trade popular digital currencies like Bitcoin, Ethereum, and Litecoin. Despite its claims, our Coinumm Review reveals alarming aspects of its legal standing, suggesting potential risks and a lack of transparency that traders need to be wary of.
I. Legal Info: Is Coinumm Regulated?
The Coinumm exchange, operating under the laws of Estonia, Lithuania, and Poland, lacks regulatory oversight in any of these jurisdictions. The absence of regulation in countries within the European Economic Area raises concerns about investor protection. Traders should choose platforms regulated by reputable financial authorities for a more secure trading environment.
II. Trader Reviews – Sharing Experiences
Attempts to find reviews on trustpilot.com were hindered by the removal of several fake reviews. Complaints on scamadviser.com highlight issues of fraud, reinforcing the notion that Coinumm might not be a trustworthy exchange. Vigilance is crucial, especially considering the prevalence of private channels and chats used by crypto scammers to lure victims.
III. Who Are Coinumm’s Targets?
Coinumm primarily targets traders in EU countries such as France, Italy, Poland, Slovakia, and Czechia. However, the lack of ESMA approval and regulatory oversight in these countries increases the risks associated with trading on this platform.
IV. Which Trading Platform Is Available?
Coinumm offers a simple web terminal for spot cryptocurrency trading. While it provides basic tools like graphs and charts, the absence of advanced options raises concerns about the effectiveness of the trading experience. Traders are encouraged to opt for licensed platforms supporting reputable third-party software like MT4 or MT5 for enhanced functionality.
V. Outlined Fee Structure
Coinumm discloses various fees associated with buying and selling cryptocurrencies. Processing fees, Coinumm fees, and network fees apply, with percentages ranging from 0% to 11%. Lack of transparency regarding maker and taker trading commissions adds to the uncertainty.
VI. Suspicious Affiliate Program
The Coinumm affiliate program, resembling a Ponzi scheme, rewards users for recruiting new members. Caution is advised due to the inherent risks associated with such structures, emphasizing the need for careful consideration before participating.
VII. Funding Options and Refund Methods
Coinumm supports various methods for buying crypto and withdrawing funds, including credit/debit cards, wire transfers, and e-wallets. A MasterCard/VISA transaction can be reversed via chargeback, offering a potential recourse for users facing issues with withdrawals.
Conclusion:
In conclusion, our verdict on Coinumm is that it presents a potential risk to European traders and investors. Lack of regulation, suspicious reviews, and a questionable affiliate program contribute to the platform’s dubious nature. Traders are strongly advised to exercise caution and explore safer alternatives. If you have encountered issues with Coinumm, our professional services are available to assist in fund recovery. Book a free consultation with Scam Brokers Reviews to initiate the chargeback process and safeguard your financial interests.
