Cryptocurrency, a relatively recent innovation in financial technology, has promised a new age of decentralized finance. But as with every gold rush, this brave new world has attracted its share of scammers and dubious entities eager to make a quick profit at the expense of less savvy pioneers. Today, we unravel a complex web that involves MEXC Global, a shady cryptocurrency exchange and the STYLE token project.
The Basics: Rug-Pulls and Cryptocurrencies
Before delving into the murkier aspects of this saga, we need to familiarize ourselves with two key terms in the crypto world: ‘Rug-Pulls’ and ‘Cryptocurrencies’. A ‘Rug-Pull’ is a term popular in the crypto community, describing a malicious maneuver in the decentralized finance market where crypto developers abandon a project and run away with investors’ funds. Often, prices crash dramatically, leaving investors with near-worthless tokens.
On the other hand, Cryptocurrencies are digital or virtual currencies that use cryptography for security and operate independently of traditional banking systems. One such cryptocurrency at the heart of our story is STYLE, which was pushed forward into the German market by MEXC exchange.
What is MEXC Crypto?
MEXC Global is a Singapore-based cryptocurrency exchange that allows users to buy, trade, and sell cryptocurrencies. The MX token plays a variety of roles within the MEXC ecosystem. It can be used to pay for transaction fees, participate in token sales, earn rewards, and gain access to premium features. Holding MX tokens may also provide users with voting rights on certain platform decisions.
What is Style Protocol?
The STYLE protocol is a project that seemingly seeks to blend the worlds of fashion, blockchain technology, and NFTs (Non-Fungible Tokens), although the exact intentions and functioning of this token remain somewhat unclear. With their promise to bridge all digital realms, one might think they’ve cracked some secret interdimensional code.
A vast majority of the team behind Style protocol looks to be from Germany, a fact that will later make sense.
The Scam: MEXC, STYLE, and the German Connection
MEXC Global, in its aggressive push to expand into the German market, has displayed a number of shady and unethical practices. One glaring issue is its complete disregard for German financial regulations. The exchange does not possess the necessary BaFin license to operate in the DACH region (Germany, Austria, and Switzerland). Other companies have previously been forced to cease operations in Germany for failing to secure this license such as ByBit. Despite this, MEXC continues to brazenly operate, marketing heavily in German and even putting up German banners.
The situation becomes even more suspicious with the involvement of the STYLE token, which is listed on the MEXC exchange. The STYLE token project involves a German team, further underlining the ties between MEXC’s unregulated activities and the German market. This association raises questions about MEXC’s legitimacy and its eagerness to work with projects from a region where it has no legal standing.
One of the main promoters of the STYLE token is Bitcoin2go’s ex-business development employee. Interestingly, since its launch at around $0.02, the STYLE token price has experienced a dramatic crash, dropping by more than 90% within just six days to around $0.002. This price collapse fits the pattern of a ‘rug-pull’, leaving many investors bearing significant losses. How can this be a “Fair Launch” with money vested for 18 months? This is a classic rug-pull, there is no other explanation.
Other People behind MEXC’s illegal practices
Awek Werth, a man known for his disdain of rules and regulations, emerges as a central figure behind the controversial entry of MEXC into Germany. Partnered with Valentine, also known as Vale, an ex-employee of Bitcoin2Go, these unconventional entrepreneurs coalesce under the umbrella of Blockbloom.io, a consulting company. However, their involvement in the blockchain ecosystem has been marred by a notable incident: a drastic 90% drop in the price of the STYLE token. This alarming event raises pressing questions about the underlying mismanagement and flawed economics that contributed to such a catastrophic outcome.
The Style Protocol, although part of OMA3, raises concerns regarding the transparency and integrity of the organization. OMA3 offers membership to any project, including those with questionable practices like The Style Protocol, simply by paying a recurring fee. This unrestricted access without thorough background checks raises doubts about the legitimacy of OMA3’s selection process. It is plausible that OMA3 might already be aware of the shady dealings of The Style Protocol but allows its membership nonetheless. Such a scenario suggests a potential involvement of individuals associated with The Style Protocol within the OMA3 foundation, casting a shadow of doubt over the credibility of both projects.
Questions on the Style Protocol Crash – Why?
What factors led to this downfall? Was it a consequence of misjudgment or strategic errors? Why did they choose to launch during the depths of a bear market? Was it a desperate bid for funds to avoid bankruptcy? The answers to these inquiries remain elusive, leaving observers perplexed and eager to uncover the truth behind this tumultuous affair.
Conclusion: Investor Vigilance in a Dynamic Cryptocurrency Landscape
This tale of MEXC Global and the STYLE token project serve as a poignant reminder to investors of the importance of diligence and vigilance in the dynamic and often unpredictable cryptocurrency market. Particularly during bearish phases in the market, certain investors may attempt to abandon sinking projects and pump up new ones in hopes of recouping losses or achieving larger profits.
While the allure of quick profits can be enticing, investors must remember that the bedrock of any successful investment strategy lies in robust due diligence. It is crucial to scrutinize the team behind a project, their motives, and their track record before deciding to invest. Moreover, one must also consider the legal standing of the project, especially in light of regulatory licenses and adherence to regional laws.
The case of MEXC Global and the STYLE token project underscore this point. While the prospects might have seemed promising, a closer examination revealed regulatory non-compliance, suspicious links, and questionable motives, all of which resulted in significant financial losses for many unsuspecting investors.
In conclusion, while the promise of decentralized finance and the broader cryptocurrency market is indeed exciting, it remains a field where caution must go hand-in-hand with innovation. The MEXC-STYLE saga is just one example of how not all that glitters is gold in the world of crypto, and why investor vigilance is more critical than ever in this era of digital currencies.