Darico.io is a broker that claims to provide over 1,000 financial assets for trading, which include Cryptocurrencies, Forex, Commodities and Indices.
But we suspect that this broker and Crypto exchange is a scam.
Reliable and properly regulated brokers can be found on this page.
Darico claims to have built an internal exchange within its website which offers seamless trading experience in addition to a variety of Crypto pairs.
This broker’s website was launched sometime in June 2017. Next, they launched their Darico Ecosystem Coin (DEC) in December of the same year.
DEC is a utility token and according to the company, DEC is supposed to perform a number of functions not limited to payment of trading fees and issuing of discounts to token holders who use Darico exchange.
Darico combines the operation of a regular Forex broker with that of a fully-fledged Crypto exchange.
They claim Darico is a hybrid digital asset exchange offering tokens that are backed by real assets as security.
The company even claims that they’ve adapted top-notch security which monitors the activities within its exchange and a fail-proof Cold Storage designed to keep funds safe.
I’m not sure how safe it is to invest with Darico because there are multiple problems associated with the way this broker operates.
First of all, the official website lacks a basic security feature such as an SSL certificate.
An SSL certificate is basically a browser padlock sign that assures users that it is safe to conduct financial transactions through the website.
A website that lacks this basic security feature is basically exposing user information to hackers thus making investors data vulnerable to attacks.
So if Darico.io cannot take care of such small concerns, how can they be trusted to say the truth when it comes to where they store investors’ coins?
In this Darico review, we’ll discuss the features and our thoughts regarding the service offered by this broker/exchange.
Mojtaba Asadian is currently listed as the Founder and CEO. He appears to be based in United Arab Emirates.
Mojtaba runs two companies namely Darico Limited and Darico AG.
Other teams members can be found here.
Darico AG is based in Switzerland while Darico Ltd is operating from this physical address: Suite 7, Hadfield House, Library Street, Gibraltar.
The company claims that the ecosystem of this operation was designed to empower the Crypto community through professional and user friendly investing tools.
The company insists that these tools can be used by investors to monitor, trade, invest and spend their Cryptocurrencies with confidence.
The broker and exchange also claims that their business is owned by the community, i.e those who own Darico Ecosystem Community Shares (DECS).
They claim to provide fast execution on their trading platform since they have low-latency.
However, looking at the website, we see that the Crypto exchange has not been launched yet as it’s in the “coming soon” status.
Also, we’ve observed that the project is very quiet lately.
Investors are often advised not to put their money in projects that show signs of becoming dormant or exiting with their funds.
So this is the first red flag to consider.
We’ve checked the project’s roadmap and found that the company is not fulfilling most of the items listed in that road map.
For example, Darico’s Crypto exchange was supposed to be launched in the fourth quarter of 2018 and up to January 2019.
Right now we are in December (as at the time of writing this Darico review) and as you can see, the Crypto exchange has not been launched yet.
Darico review: The broker side of the business
Whereas this project seems to have been formed around Cryptocurrencies and altcoins, it also has an aspect of a typical Forex brokerage which means leverage, spreads, account types and so on must be discussed.
Their never-to-be Cryptocurrency exchange was supposed to provide leverage of up to 1:500.
For traders holding DEC token accounts, a 50% spread discount is supposed to be issued.
The company is currently running the popular MT4 and MT5 trading platforms respectively.
The company is offering their web-based versions including downloadable and mobile versions of the software.
A portion of the account features can be viewed in the following image:
Darico does not seem to have updated all sections of their website despite the company existing for at least 2 years.
This is an indication that Darico exchange does not have enough staff members to do the necessary updates.
As highlighted earlier in this review, the project seems to be dead, hence this explains their sluggish way of doing things or lack of interest thereof.
Is this broker or exchange regulated?
The answer is No, they’re not regulated.
According to the laws of Switzerland where the company is operating from, every financial service should be licensed and authorized by FINMA, which is the country’s main regulator.
While the Crypto community does not have strong regulations or a central financial regulator yet, the Forex, stocks and Commodities markets have strong regulations, and brokers venturing into these markets must be holders of valid licenses from their respective financial regulators.
Therefore, it’s clear that Darico is illegally offering its financial services to traders and investors around the globe.
Furthermore, they’re providing a platform for storing Cryptos and debit cards for withdrawing coins in fiat currency.
This means that this broker is also operating like a banking institution. It means they need to be properly regulated.
Otherwise, they are breaching the law for reasons that are quite obvious by now.
Darico started out as a Crypto project with a token-based ecosystem but the main thing is that they wanted to provide Forex trading services like other brokers.
They wanted to circumvent the regulatory part by introducing the idea of utility tokens.
They claim that over 10,000 investors have signed up but that isn’t the case.
The broker is also claiming to provide $100 no deposit bonus. Deposit bonuses come with certain fine prints or undisclosed trading conditions which are usually unfavorable to traders.
Also, financial regulators in the EU have since banned broker bonuses meaning that brokers who target citizens or residents of EU countries cannot offer them anymore.
Darico consistently goes against the standard requirements of financial regulators which means they’re potentially skimming to exit with investors’ funds.
Thanks for reading this Darico review. We welcome your comments below.