In the crypto circle, some people make a fortune, while others face liquidation. But whenever a user loses money, there are voices shifting the blame to the exchange, with terms like 'platform fraud' and 'about to run away' flooding in. Today, we will analyze the core logic of 'liquidation ≠ fraud' through a real user's experience, and also discuss the pitfalls to watch out for when choosing an exchange.
The following content is from an anonymous user's submission
I am an ordinary retail investor, and I've been in the circle for less than two years, mainly trading contracts. The incident happened three months ago when I went long on ETH at WEEX, and suddenly the market reversed, resulting in my liquidation, and my position went to zero.
At that moment, I was definitely upset; tens of thousands of dollars just vanished. What was harder to bear was that shortly after the liquidation, I was added to a 'rights protection group.' Many people in the group were saying that this platform was 'manipulating' and 'setting up' behind the scenes, and some even shouted about reporting it, claiming WEEX was 'fraudulent' and 'about to run away.'
To be honest, when I first entered, I was a bit shaken. People were speaking convincingly, even posting a bunch of screenshots of 'WEEX fraud' from search engines.
But I still decided to figure it out myself. I looked into the so-called 'fraud' evidence, and most of the content was years old or related to some other unrelated platforms with the same name.
For example, there are some platforms also named WEEX that have indeed been used by some illegal organizations to 'set up' scams, and as a result, the legitimate platform still bears the 'historical stigma' after it developed.
In fact, the appearance of certain keywords in search engines does not necessarily indicate that the platform really has problems. It might just be due to some old news, user emotional outbursts, or even malicious word manipulation by competitors. Just like what I found about WEEX, it has not run away; it has actually provided a user protection fund to compensate for user losses caused by system failures.
I later didn't argue in the group or seek rights protection because I realized that my liquidation was indeed due to my own excessive leverage, not setting stop-losses, and the market reversed too quickly, leaving me with nothing. Many people in the group were actually in the same situation; they just wanted an emotional outlet.
But after this incident, my criteria for choosing platforms have changed. Here are the key points I consider most important now:
1. Whether it is compliant and licensed, preferably regulated by multiple countries;
2. Whether operational information is publicly available, such as whether there is a protection fund or a compensation mechanism;
3. Whether customer service is real people and can respond quickly;
4. Whether the platform has a history of serious incidents and whether it has dealt with user losses in a timely manner;
Taking WEEX as an example, although it has been associated with keywords like 'fraud' by search engines, a closer look reveals that most of these associations stem from historical incidents involving another fraudulent platform with the same name. Moreover, WEEX itself has multiple compliance licenses from various countries and has publicly disclosed the address of a 1000 BTC investor protection fund. Previously, due to a system failure, it voluntarily compensated users nearly ten million dollars—this is the attitude a reliable platform should have.
Conclusion:
I know that with this article coming out, some might say I'm trying to wash my hands of it. But to be honest, the crypto circle is inherently a high-risk industry; when you lose money, you need to discern whether it's a system issue, a market problem, or your own operational mistakes. Attributing everything to 'fraud' not only doesn't help you, but also makes you vulnerable to real scammers.
I hope this short article can serve as a reminder to retail investors like me: do more homework, avoid blindly following others in seeking rights protection, and choosing the right platform is more important than complaining about the platform afterward.
