Cryptocurrency scams resulting in massive losses are on the rise globally. With bitcoin and other crypto assets surging in popularity, fraudsters are capitalizing by pulling off large scale Ponzi schemes and exit scams.
Recent examples include the Squid Game token scam that stole $3.38 million and the Thodex exchange scam causing $2 billion in losses. This highlights the need for proper due diligence to avoid becoming victim to crypto fraud.
One platform garnering attention lately is Cosetek, an automated cryptocurrency trading platform claiming to offer impressive returns through advanced AI. But does it deliver on its promises or hide a darker truth?
This extensive guide will uncover the red flags surrounding Cosetek and equip you with knowledge to spot potential cryptocurrency scams.
What is Cosetek?
Cosetek is an automated crypto trading platform that generates profits for users through algorithmic trading. The platform claims to use advanced AI and machine learning to analyze market data and execute profitable trades on behalf of users.
On the surface, Cosetek allows users to deposit cryptocurrency and earn impressive daily returns that can supposedly grow accounts exponentially within a short period of time. For example, some plans claim to deliver 0.5-0.7% returns per day – which would equate to 182-255% annually.
Cosetek also employs a multi-level marketing (MLM) structure where existing users can refer others and earn commission on their deposits and trading profits.
There are 6 membership tiers ranging from 30 USDT minimum deposits up to 50,000 USDT for the highest level. Higher tiers offer decreased daily returns but increased earning potential from commissions.
The Red Flags Surrounding Cosetek
While the advertised returns and earnings potential of Cosetek may seem enticing, there are a number of red flags indicating that this platform is likely a scam to be avoided:
No Verifiable Trading Records
Cosetek does not provide any trading records, account statements, or third-party verification of its advertised trading results. There is no evidence that the platform is actually generating profits through its supposed algorithmic trading activities. Legitimate crypto trading platforms will often link public accounts on sites like MyFXBook to provide transparency. Cosetek provides no such proof.
Nowhere on the Cosetek website or in any of its marketing materials does the company provide information about who owns or operates it. All classic signs of a scam operation trying to remain anonymous while fleecing users. Legitimate businesses should be transparent about who is running operations.
Too Good to Be True Returns
The daily returns advertised by Cosetek are unrealistic and unsustainable. Even the top crypto hedge funds in the world do not consistently generate returns of 0.5% or more per day. Guaranteed returns in this range are a textbook sign of a Ponzi scheme.
Affiliate Marketing Tactics
The referral commissions and tiered rewards programs are designed to keep money flowing into the system so existing members continue earning rewards. This covers up the lack of actual trading profits being generated. The more users Cosetek can convince to deposit funds, the longer the charade can go on.
Cosetek does not implement sufficient security measures to keep user funds safe. The platform lacks basic protections like 2-factor authentication, SSL encryption, or DDoS protection. Users are also not provided with cold wallet storage options. This puts deposited funds at high risk of theft or loss.
Lack of Regulation
Cosetek clearly avoids any mention of licenses or regulations they may be operating under. Unregulated offshore platforms like these have much higher risk of engaging in unethical practices without oversight. Users have little recourse if issues arise.
One of the most common complaints against Cosetek are users reporting delayed withdrawals or inability to access funds. Many have reported waiting weeks or longer without receiving withdrawals, despite being told payments were processed.
Analyzing Cosetek Reviews and Complaints
A deeper look at reviews and complaints about Cosetek from across the web further confirms suspicions about the platform being a scam. Here are some key points that stand out:
⛔ The most common complaint relates to withdrawal issues – from lengthy delays to outright denial of withdrawal requests without cause. Eventually users are cut off from their accounts.
⛔ Many users question the legitimacy of positive reviews. Paid/fake reviews seem to be used alongside referral links to attract new victims.
⛔ Some early users admit receiving small withdrawal payments at first which convinced them to invest more. This appears to be a tactic to build trust and get users to put in more money that will ultimately disappear.
⛔ Most users who invest larger sums end up unable to ever withdraw their balance and are ghosted by support.
⛔ Technical glitches and errors conveniently tend to occur right when users attempt withdrawals for the first time.
⛔ Support responses from Cosetek tend to be automated and only offer generic advice rather than resolving the underlying issues.
⛔ Any mention of legal action is ignored or results in users getting blocked or cut off completely.
The pattern of experiences and complaints about Cosetek aligns very closely with previous crypto scams that have eventually pulled exit scams and disappeared with user funds after building up substantial deposits.
Red Flags to Watch Out For in Crypto Opportunities
- Claims of huge guaranteed returns – Anything promising returns of 1% or more per day is unrealistic and unsustainable.
- Anonymous team members – Legitimate platforms should be transparent about who is running them.
- Aggressive promotions focused on referrals – Multilevel marketing structures are often cover for Ponzi schemes.
- Lack of third party verification – No links to audits or verified trading records is a concern.
- Website registered recently – Newly registered sites should be more thoroughly vetted.
- No mention of licenses or regulations – Unregulated entities put your funds at higher risk.
- Poor security practices – No SSL, 2FA, cold storage options are red flags.
- Payment only via cryptocurrency – Inability to pay by credit card is suspicious.
How to Spot Crypto Scams
In other to spot crypto scam, all you have to do is;
- Check if the platform is registered and licensed to operate in your jurisdiction. Unregulated entities are riskier.
- Look for third party verification of trading activity and claimed returns through audits.
- Research team members online for any red flags.
- Avoid sites promising guaranteed returns or focusing heavily on referrals.
- Ensure proper security measures like 2FA, SSL, and cold storage.
Cosetek Scam Warning Signs
Here is a summary of some of the most obvious warning signs indicating that Cosetek is likely a scam that should be avoided:
🚩 No verifiable evidence of trading or profitability – No trading records, account statements, or third-party verification.
🚩 Anonymous team – No information about who owns or runs Cosetek.
🚩 Unrealistically high returns promised – 0.5-0.7%+ per day is unsustainable and impossible.
🚩 Affiliate programs emphasize referrals – The focus is on getting new money into the system, not generating trading profits.
🚩 Poor security and lack of regulation – Puts user funds at risk of theft or loss.
🚩 Persistent withdrawal issues reported – The most common complaint signals a scam unable to pay users.
🚩 Paid and fake reviews used for promotion – Creates an illusion of satisfied users that does not reflect reality.
🚩 Cryptic errors when withdrawing – Designed to stall and prevent user withdrawals.
🚩 Support offers no substantive assistance – Automated responses aim to placate users, not address issues.
The Verdict: Cosetek is Most Likely a Scam
In summary, based on a thorough evaluation of the information available, Cosetek exhibits numerous red flags and characteristics synonymous with cryptocurrency scams. There is little evidence to substantiate their claims of having a profitable automated trading platform.
Much more likely is that user funds are being used to pay referral rewards and minimal withdrawals to early users and promoters in order to create the illusion of legitimacy and generate buzz. In the meantime, substantial cumulative deposits are building up that ultimately end up stolen once the scheme collapses.
While it is certainly possible a small number of users manage to deposit, earn referral rewards, and withdraw funds from Cosetek before issues arise, this appears to be the exception, not the norm. It’s also probable these users end up reinvesting funds that are eventually lost for good.
For the vast majority of users who engage with Cosetek, the platform is displaying all the signs of a scam to avoid at all costs. Any cryptocurrency sent to Cosetek should be considered high risk with minimal chance of ever being withdrawn. Users are best served staying far away from this platform and similar “trading bots” offering unreasonable returns.
Protecting Yourself from Crypto Investment scams
Cosetek serves as a great example of why it is so important to deeply research any platform or opportunity before investing crypto funds into it. Here are some tips to avoid falling victim to scams:
✅ Beware of “guaranteed returns” – No investment can guarantee profits, especially not unreasonably high returns. Be very skeptical of these claims.
✅ Check for transparency and verifiability – Real trading results and information about who runs operations should be available. Lack of this is a major red flag.
✅ Don’t fall for fake reviews and buzz – Promoters often create fake hype around scams to dupe people. Check independent consumer sites for real experiences.
✅ Understand warning signs – Things like anonymous teams, withdrawal issues, aggressive marketing, should make you stop and re-evaluate.
✅ Evaluate security measures – Look for 2FA, cold storage options, SSL encryption, DDoS protection to ensure your funds are safe.
✅ Start small if testing opportunities – Never invest more than you can afford to lose when evaluating high-risk platforms.
✅ Avoid “get rich quick” appeals – Any opportunity specifically targeting your greed or desire for quick wealth should be met with skepticism.
✅ See if regulations are followed – Overseas, unregulated entities have flexibility to pull exit scams and disappear without recourse for users.
No investment comes without risks. But focusing on transparency, verifiability, security, and fundamentals serves as your best defense against falling for scams like Cosetek designed to prey on the unsuspecting.
If in doubt, trust your instincts and avoid opportunities that seem too good to be true – because they almost always are.
Protecting Yourself from Crypto Investment (Summary)
- Use hardware wallets to store assets offline away from exchanges.
- Enable 2FA everywhere possible and use strong unique passwords.
- Be wary of phishing attempts asking you to login or reset passwords.
- Diversify across reputable platforms and don’t keep all assets in one place.
- Be cautious of unsolicited investment opportunities through DMs or emails.
- Monitor your portfolio and be alert for any unusual activity.
The bottom line
While Cosetek promotes easy automated trading profits, a closer analysis uncovers too many red flags to ignore. Lack of transparency around operations and trading, withdrawal problems, suspicious practices, and increasing negative reviews indicate investors should steer clear.
There are proven, registered crypto platforms and assets to choose from without these glaring warning signs. Do your due diligence, watch for red flags, and focus on fundamentals – the keys to avoiding tempting but dubious opportunities promising easy riches.
Frequently Asked Questions
Is Cosetek really as bad as people say?
Based on a preponderance of evidence – lack of verifiable trading, anonymous team, unreasonable returns promised, growing complaints about withdrawal issues – Cosetek exhibits many characteristics of an investment scam that appears to be defrauding most users. A small number of positive experiences do not outweigh the pattern of deception and losses affecting most who invest in Cosetek.
Can I make money with Cosetek?
It’s possible to make small amounts of money in the short term by taking advantage of promotional rewards, commissions, and minimal early withdrawals. However, this model is not sustainable and users inevitably end up losing any significant investment, especially once withdrawal issues arise. Relatively few end up profiting overall.
Is Cosetek doing real trading?
There is no evidence that Cosetek is actually generating returns through quantitative trading, AI, or any other technology as claimed. No trading records or statements have been provided to validate these claims. Lack of transparency around the trading activities suggests there are none taking place.
Are all the reviews fake?
Many positive Cosetek reviews do appear to be fake or paid testimonials used for promotion purposes. However, some early users may have authentic positive experiences until withdrawal issues emerge. Over time, as more users get defrauded, the proportion of negative reviews and complaints about Cosetek grows substantially.
Can I withdraw my money from Cosetek?
Most users report having great difficulty ever withdrawing money from Cosetek, even small amounts. Persistent delays, vague technical issues, and outright denial of withdrawal requests prevent users from accessing funds. Reviews suggest withdrawals rarely succeed, especially as the scheme progresses.
Is Cosetek illegal?
Cosetek operates in a grey area, careful to avoid making specific claims that would explicitly violate laws. While legal authorities may consider Cosetek fraudulent and illegal, the burden of proof and jurisdictional issues pose challenges to outright declaring it illegal and prosecuting those behind it.
Who runs Cosetek?
No information is provided about who owns or operates Cosetek. The anonymous team behind Cosetek intentionally hides their identities using shell companies and corporate proxies to avoid legal consequences for running what appears to be an investment scam.
How does Cosetek work?
Cosetek claims to generate profits via algorithmic trading, but provides no proof. More likely user deposits fund promotional rewards and minimal withdrawals to give the illusion of profits. As long as new money flows in, the charade continues until eventually deposits are stolen.
Also Beware these trending scams: