Unfortunately, yet another exchange turned out to be a scam. This time it’s NovaChain, both its social networks and the website have been out of reach for a few days now.
The platform in question, born just over a year ago, promised easy profits because it used the trading bot T-rex, specialised in arbitrage trading.
“NOVABOX is a secure and open-sourced decentralized service that provides utility for our token while creating an additional income source for token holders”, mentioned the website.
The platform had its own token, NOVA, which was traded a couple of months ago at around $0.20. According to the website, NovaChain shared 90% of the fees collected on the platform to all those who held at least 15,000 NOVA tokens, or about $2400.
Some of the warning signs had already begun to come from a number of users in March 2019, who complained about the platform’s unclear practices.
Unfortunately, all the users who had invested significant sums in NovaChain and the NOVA token have now found themselves empty-handed, thereby proving that even if a platform has been operating for some time, there is no guarantee that it will remain secure in the long term and that it will not escape with all the funds.
It is always recommended not to leave funds on an exchange, especially if it is centralised, because, in addition to the volatility of the crypto price, there is also the risk that the platform may disappear into thin air or lose access to the funds, as happened in the case of QuadrigaCX.