CEX.IO, a prominent cryptocurrency exchange, has seen a drastic decline in its Trustpilot rating recently. This drop mirrors a growing dissatisfaction among users, primarily due to persistent liquidity issues and inadequate customer support.
Customer Support Issues
Users have reported significant delays in responses from CEX.IO’s customer support. Many who reached out via Facebook received automated replies stating, “Hi [User], thanks for your message. We are not here at the moment, but we’ll get back to you soon!” Despite repeated attempts, no substantial assistance was provided. Some users claimed that CEX.IO blocked their accounts on Facebook and X (formerly Twitter) after they sought help from their company profiles.
Liquidity Problems
CEX.IO has also faced liquidity challenges, further damaging its reputation. Liquidity ensures traders can buy and sell assets without significant price changes. While CEX.IO launched Exchange Plus to provide deep liquidity, these efforts haven’t sufficed to alleviate user concerns.
A notable incident was when the U.S. Federal Deposit Insurance Corporation (FDIC) instructed CEX.IO to cease misleading claims that U.S. dollars held in its wallets were insured. This added to traders’ anxiety about the security and liquidity of their assets on the platform.
Impact on Trustpilot Rating
CEX.IO’s Trustpilot rating has plummeted as a result of these issues. The exchange has received numerous negative reviews from users frustrated by the lack of support and perceived instability of the platform. Concerns over the ability to withdraw funds and overall transparency of CEX.IO’s operations have been prominent.
A Growing Trend on Trustpilot
There is a growing trend on Trustpilot of increasingly frustrated, angry, and disillusioned users. Despite having over 23,000 reviews with 78% 5-star ratings, fewer people are now trusting CEX.IO.
| Ratings | Total reviews | 1 star | 2 star | 3 star | 4 star | 5 star |
| 30 days | 25 | 21 (84%) | 1 (4%) | 1 (4%) | 1 (4%) | 1 (4%) |
| 3 months | 35 | 27 (77%) | 1 (2.8%) | 2 (5.7%) | 1 (2.8%) | 4 (11.7%) |
| 6 months | 92 | 56 (60.8%) | 6 (6.5%) | 2 (2.2%) | 2 (2.2%) | 26 (28.3%) |
| 12 months | 846 | 131 (15.5%) | 9 (1%) | 16 (1.9%) | 77 (9.1%) | 613 (72.5%) |
As the chart clearly indicates, CEX.IO is failing its customers at an alarming pace. A company that is safe, strong, and committed to customer values does not show a 5-star rating slip from a 72.5% approval rating over the past year to a mere 4% approval in the last 30 days.
Similarities Between CEX.IO and the Collapse of FTX
The recent issues faced by CEX.IO bear striking similarities to the infamous collapse of FTX, another major cryptocurrency exchange. Here are some key points of comparison:
Liquidity Issues
Both CEX.IO and FTX faced severe liquidity problems, which played a crucial role in their downfall. Liquidity issues at FTX were primarily due to the mismanagement of funds and over-leverage. This resulted in a massive withdrawal of assets, leading to its collapse . Similarly, CEX.IO’s liquidity challenges have led to a lack of trust among users, as they are unable to withdraw their funds smoothly.
Customer Trust and Transparency
A lack of transparency and customer trust is another common thread. FTX was accused of misusing customer funds and not being transparent about its financial health . Similarly, CEX.IO’s opaque practices, especially regarding fund withdrawals and account freezes, have eroded user trust. The blocking of customer inquiries on social media further exacerbates this issue.
Regulatory Scrutiny
Both exchanges have faced significant regulatory scrutiny. FTX was under investigation for its financial practices and compliance failures before its collapse . CEX.IO has also faced regulatory issues, such as the FDIC’s directive to cease misleading claims about USD insurance. These regulatory challenges further destabilize their operations and investor confidence.
Conclusion
The collapse of CEX.IO’s rating on Trustpilot is a direct consequence of its ongoing liquidity issues and inadequate customer support, drawing uncomfortable parallels with the downfall of FTX. Both exchanges failed to maintain liquidity, transparency, and regulatory compliance, leading to a significant loss of customer trust. CEX.IO needs to address these problems urgently to restore user confidence and stabilize its operations. For those considering using CEX.IO, staying informed about these developments and proceeding with caution is crucial.
