Caution! Lemmecap is an offshore company! Your funds may be at risk.
Lemmecap Key Facts
🔴 Lemmecap offers questionable bitcoin related investment opportunities – a clear sign of a scam!
🔴 Lemmecap is quite coy with crucial contact information – beware!
🔴 Lemmecap lacks the appropriate license for the provision of its services – a huge red flag!
🔴 Lemmecap's domain has been registered only recently – another off-putting detail!
Lemmecap products and services
Lemmecap claims to be a cryptocurrency broker, as well as a trading platform for various tokens. In reality, Lemmecap is simply a fraudulent, unlicensed company. Lemmecap also offers incredibly lucrative signup bonuses, which it has no intention on paying out. The company is simply a scam that is after your deposits.
People should always be cautious when dealing with businesses offering enormously high yields because it's scammers' trait to promise big and create unrealistic expectations. In reality, regulated financial companies cannot secure more than a few percents annually with their fixed-income products. There is a huge discrepancy between these offers and the regulated companies standards. Judging by the products and services they sell, we suspect it's a scam, so beware.
Lemmecap company and regulation
Lemmecap is not a regulated company, as it does not present us with a regulatory license. This is quite off-putting, as brokers should be overseen strictly, lest they turn out to be scams.
The US financial services regulation is very complex in the USA. Derivatives markets regulation is a responsibility of CFTC and NFA. Forex brokers and most of the investments companies have to be NFA members and CFTC registered to operate in the USA. On the other hand, securities markets are controlled by the SEC, a government independent agency responsible to maintain the integrity of the financial markets.
While SEC focuses more on the procedure regulation insisting on financial reports and management discussion and analysis, NFA and CFTC impose pretty straightforward requirements. To become authorised the companies have to provide 20 million USD in paid-up capital, which is considered a guarantee that the businesses can survive in turbulent times and pay whenever they have to.
Other customer protection measures include clients’ accounts segregation and leverage restrictions for forex brokers- 1:50. Also, CFTC brokers’ clients are not allowed hedging, which is one of the very unique US features. Unfortunately, the cryptocurrencies regulation is still inept, so traders and investors should be wary when dealing with crypto offers.
Lemmecap address and contacts
Lemmecap does not provide us with any contact information – there is no way we can think of a company that cannot be reached as anything other but a scam scheme.
Transparency is crucial when talking about brokers and investment companies, and it's part of the regulatory framework. The regulated companies are open to financial authorities following certain transparency rules, so it's generally unlikely to conduct fraudulent activities. They are also bound to provide the public with crucial information about themselves, making it easy for traders and investors to confirm the company's legitimacy.
Lemmecap website info
Lemmecap's domain has been online for less than two months, having been registered in February 2021. This, combined with the incredible obscurity that Lemmecap operates under, as the domain is not listed on SimilarWeb, demonstrate quite clearly that we are dealing with a scam. Another off-putting detail is the fact that the company's owners have concealed their identities from a WhoIs lookup, once more breaching important principles of transparency.
Finally, the domain is hosted on the 104.21.20.109 IP address from the US – this address co-hosts 646 other domains, none of which could be connected to Lemmecap at the time of writing.
Scam warning
We paid utmost attention to the regulation and transparency in the sections above because it’s mandatory for trading and investments. Pretty much each company offering financial services have to be authorised by the local financial authority.
However, some entities operate unlicensed and intentionally run investment fraud. It would be best if you only dealt with companies authorised by the regulators, so always check to make sure they are. Bear in mind that if you trade with unauthorised businesses, you won’t be protected, so it’s very likely to suffer losses almost impossible to recover if things go wrong.
Online scam is trending nowadays with fraudulent websites popping up literally every day. The financial authorities increase the number of warnings issued year after year, but the dangers are still out there and growing exponentially. You’ll realise the hazards when you consider OneCoin scam- it’s still impossible to calculate the total loss, but it’s regarded as 15 billion worth fraud. Make sure to trade with licensed and regulated companies to avoid off-putting losses.