COTPS (Crypto OTC Trading Platform) is an online investment site that looks to maximize profits for investors via cryptocurrency arbitrage trading.
It claims to utilize price discrepancies between various cryptocurrency exchanges to generate returns.
So, the question here is… Is COTPS a scam or a legitimate platform?
COTPS (COTP) is an online platform that promises to bring you a passive income through over-the-counter and arbitrage trading. It suggests impressive daily returns of up to 3.6% on your investment.
COTP states that the digital assets held within their app are protected by FDIC insurance, with coverage of up to $250,000 USD per customer. The company is also duly registered in the US and has been approved as a Money Services Business (MSB) by the U.S. Financial Crimes Enforcement Network (FinCEN).
Let me just explain the two terms I have mentioned above.
The Financial Crimes Enforcement Network (FinCEN) is responsible for combatting financial crimes, including money laundering. However, they are not a regulatory body and cannot provide any kind of financial license.
MSB, otherwise known as Money Services Businesses, is listed on the FinCEN Register. This is a directory of registered companies and not necessarily a regulatory body.
In order to legally provide financial services in the US, COTPS must be regulated by legitimate authorities like the FDIC, FRB, and SEC. In this regard, COTPS has falsely advertised that customers are protected by FDIC insurance worth up to $250,000 each – yet another lying claim.
So, is COTPS another crypto scam?
Is COTPS Scam or Legit?
According to the latest news and indications, it has been uncovered that COTPS.com is a deceitful venture, functioning as a Ponzi scheme that only paid investors through an unlawful financial arrangement.
The COTPS deceptions have been uncovered and current investors don’t get their promised payments. Potential investors must be aware of similar fraudulent plans that guarantee exaggerated returns with little to no danger.
In fact, COTPS is an example of an HYIP (high-yield investment program) scam where investors are promised high passive income. Unfortunately, most such promises are false and it is best to be careful when investing in such programs.
Why do we think that COTPS is not a trustworthy platform?
The returns purported by this platform are highly unrealistic and likely fraudulent. Offering up to 3.6% daily, which would equal over 100% each month, is just not possible in legitimate investment or trading programs.
But how is it possible that COTPS has been paying its users?
It’s likely that this organization is running a Ponzi scheme, where money from new members is given as rewards to existing ones. No real investment or trading is happening, it’s just an illegal pyramid game.
COTPS Reviews by Users
Feedback from customers about COTPS is consistently negative, as evidenced by customer accounts shared on YouTube and reviews posted on prominent websites like Reddit and Trustpilot.
My dad put $200 into a program called COTPS (see COTPS.net and COTPS.COM) and has “earned” over 3% a day on his investment. He sent me a video of how it works and I immediately got scam vibes.
The ”legit” explanation is that its a program that runs on your computer that you click every so often and it trades on the high volatility of the crypto markets—buying high and selling low—the owner of the company keeps a share as profit and you get a return on your investment.
I did some digging on the company and it defintely seems odd—registered in Colorado, but he registered office is a strip-mall mail center in California.Reddit User
We advise against using the COTP Trading Platform for any financial transactions. On its official website, the COTP Trading Platform states that all digital tokens kept within its app are FDIC insured up to 250,000 USD per person.
However, it is untrue. We urge you not to make any financial decisions using the Trading Platform COTPS in light of this. Only regulated businesses, such as COTP, are covered by the Federal Deposit Insurance Corporation’s deposit insurance.
It is all one big con, whether it is COTPS, COTP, or the Crypto OTC Trading Platform. If you need to take legal action in response, write to me. You can rely on our knowledgeable professionals to assist you.Mary Rad, Quora
COTPS – The Crypto OTC Trading Platform isn’t a reliable service and should be avoided.
For trading crypto, it’s best to stick with companies that are officially regulated.
You can also take advantage of their free demo mode for virtual money.
Unless you’re prepared to take risks and have a solid money management strategy, it’s important to think twice before investing real money.
This review should be shared with others in order to help spread awareness about the potential risks.
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