Since the decline of ICO hype in 2018, the new hype started about the creating new kinds of exchanges. However, the trend started to get traction in late 2017. LocalCryptos played well on the trend, and as obvious from the features, design and functionality launched quickly due to the massively available “white label exchange” and “LocalBicoins clone script” solutions in the market. This is effectively when you purchase the entire copy of another well-known exchange but request some modifications and customization.

Such solutions might be good for quick launch, however, that assumes that this is just the first step to get traction and get the project up and running. On later stages, such exchange must modify, redesign and rewrite the entire source code if doesn’t get fined for intellectual property thief, as the sellers of “white label” solutions, and the rest of market participants know well about the back doors, threats and weaknesses of the codes. Therefore, at any moment such solution can be exploited, and all the customers’ deposits can be stollen.

A good, reliable or capable exchange operator would rather develop the required solution from ground up, or at least over time modify the exchange with the initial profits earned. Which was not the case with LocalCryptos, while the exchange continues to charge high fees.

With such solution, it’s only a matter of time when you funds will be stollen that you deposited to LocalCryptos. Is it when the development team thinks that they earned enough, and you will see headlines about the another “hack”? Is it when the white-label solution provider things that it’s the right time? – We don’t know the answers to these questions, but it’s sure to happen.

Yet, you are required to pay 1% in trading fees for such insecure solution. It’s only your choice – to pay 1% fees for insecure LocalBitcoins clone, or to get the same features for free with your network fees being compensated.

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