CoinRabbit is a relatively new crypto lending platform that allows users to earn interest on crypto and borrow crypto-backed loans. While the platform has many positive reviews online, in this detailed review, we're going to dive deeper into every aspect of CoinRabbit, to find out whether it's a safe investment option or yet another scam.
CoinRabbit in Numbers
We could not find any information about the platform. There is no dedicated statistics page, and CoinRabbit told us that the company doesn't provide such data when we reached out to customer support.
The only information we could find is that CoinRabbit was founded in November 2020. This makes the platform relatively new in the crypto lending space.
You should be wary of depositing your funds on platforms with no statistics, as you cannot tell whether investors have lost money or how many assets the platform handles.
CoinRabbit Referral Code
Due to the number of red flags we have encountered during our research of CoinRabbit, we suggest not participating in any referral programs as your funds are at risk.
To earn a yield on crypto on CoinRabbit you have to meet the following requirements:
- Be over 18 years old.
- Have a valid email address
There is no KYC process on CoinRabbit as we conduct our CoinRabbit review.
With most crypto lending platforms, KYC regulations are in place to "know your customer" and minimize risks such as fraud or identity theft. Most legitimate platforms carry out this simple check which takes very little time.
CoinRabbit has no limitations on users registering worldwide. The only restrictions come from some countries, such as China or Iran, where users cannot use SMS confirmation to set up their accounts.
Risk and Return
It's essential to mention that a crypto account is not a savings account. Any governmental scheme does not back it; you may lose some or all of your crypto coins if certain risks materialize.
We suggest never treating any crypto or P2P lending account as a savings account. To keep your crypto assets safe, use the hardware wallet from 🔒 .
What Does Coin Rabbit Insurance Cover?
CoinRabbit does not insure your funds, which means that if their website came under a cyber-attack, you might lose some or all of your funds.
When we spoke with customer support, we discovered that CoinRabbit has no plans to introduce insurance for its users.
How Does Coin Rabbit Make Money?
CoinRabbit was not willing to share how the platform turned a profit. This is unsurprising as many crypto lending platforms keep this information private.
We did manage to find out that CoinRabbit does not engage in rehypothecation, which is a good sign. Additionally, CoinRabbit doesn't disclose it's risk management procedures nor does the platform provide additional information about it's revenue streams.
Is CoinRabbit Regulated?
CoinRabbit is not regulated, meaning the company could run away with your money without being held accountable.
Becoming regulated is also not in the pipeline for CoinRabbit any time soon.
How Is CoinRabbit Secured?
CoinRabbit has cold wallet storage in place, provided by Guarda, an online secure crypto wallet that also offers the opportunity to buy coins. Only select team members have access to the wallets via a private VPN. However, this does little to reassure us about the safety of users' funds, as we don't know anything about the team or who has access.
There is an approval process in place for transactions, and several members must approve each one of the team.
CoinRabbit has recently introduced 2FA through Google authenticator; however, there is no option to set up whitelisted addresses.
There is very little information about the security of assets; what we know is vague.
Your Return On CoinRabbit
CoinRabbit has two products, the earn account and the borrowing feature, which allows you to get crypto-backed loans for an unlimited period.
You can earn 7% APY, similar to what other crypto lending platforms offer.
When deciding which website to deposit on, other crypto lending platforms have the edge with more variety of currencies available.
A good thing to note is that fees do not eat into your profits on CoinRabbit as the platform charges zero fees for withdrawals or deposits.
The only time you can incur a fee is if you take a loan for less than 30 days, and the cost is $100.
On CoinRabbit, you earn interest daily, which is then paid into your wallet monthly.
The minimum investment amount is $100, and deposits are capped at $100,000. There is no staking or lockup period, and you can withdraw your funds anytime.
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Is CoinRabbit Safe?
When completing your due diligence on any platform, you should find out as much as possible about where the company operates and who is behind it.
Who runs the company?
There is no mention of any core team members available on the website or the company’s LinkedIn page. Crunchbase tells us that CoinRabbit has between 11 and 50 employees.
When we contacted the customer support team directly to ask about the CEO, CoinRabbit told us that CoinRabbit doesn't like distributing such data.
However, we finally obtained the information that the CEO is Vladimir Sirmons and that a 'team' page is under construction for the platform to introduce its core team.
The "team" page has been under "construction" for several months. Judging by the lack of transparency, users should not expect further information about the team members. Our quick research on LinkedIn found five people who claim to be associated with the platform. Those individuals are based in Austria, Estonia, and the Netherlands, and most seem to have a role in Marketing.
Where is CoinRabbit based?
CoinRabbit’s headquarters are based on the island of Saint Vincent and the Grenadines in the Caribbean.
The official site can be found at Rabbit Finance LLC, James Street, Kingstown, First St Vincent Bank LTD Building, St Vincent and the Grenadines.
Are there any suspicious terms and conditions?
CoinRabbit can terminate your account at any time for any reason whatsoever.
While CoinRabbit says the company will make reasonable efforts to inform you of material changes with 30 days' notice, it is also at their discretion what constitutes material changes. Therefore, you should keep up to date with the terms.
Once you have deposited your coins on the platform, CoinRabbit takes ownership of these until you decide to withdraw. This is not in your best interest.
Potential Red Flags
- No information about the CEO or team behind the platform
- No statistics
- No transparency about its business model
What’s Our Opinion of CoinRabbit?
CoinRabbit does not have a statistics page nor introduces the team on its website.
On top of that, the Trustpilot reviews of the company seem untrustworthy, considering that most of the reviews are 5* and come from accounts with no profile picture and just one review. This gives us the impression that some reviews may be fake.
There is a heavy reliance on these reviews on the website and on social media and press mentions.
CoinRabbit provides average interest rates similar to those on Yield App or YouHodler, which are well-respected crypto earning platforms in the space and have many more safety features.
The platform is also unregulated and doesn't offer insurance to its users.
This is a big red flag when it comes to investing your digital assets as users are depositing their funds and simply hoping for the best, relying on CoinRabbit's word alone.
There is also no app available for iOS or Android, which puts the platform behind others in the space.
When reaching out to the platform, we could not gather any statistical data, even simple requests such as the size of its user base.
Although many crypto lending companies can be sketchy, we were surprised by the complete lack of transparency from CoinRabbit.
We were unimpressed with the lack of security features on the platform and the lack of credit checks or KYC processes for users. While this may seem significant if you want to take out a loan quickly, it may not be good news for investors as CoinRabbit knows nothing about its borrowers.
Saying that there is an LTV ratio of 50% means borrowers must provide double the loan amount in collateral to qualify for a loan.
CoinRabbit doesn't stand up to the mark when completing our due diligence process.
You can earn more lucrative interest rates from more legitimate platforms with better security features elsewhere.
On top of that, some crypto lending sites are also regulated and provide insurance to protect users' funds.
You can earn interest on just three different coins on CoinRabbit: BUSD, USDC, and UDST
Regarding borrowing, the platform supports 64 digital assets as collateral, including the most popular such as BTC, ETH, LTC, and USDT. You can borrow in USDT, USDC, BUSD, BTC, ETH, DOGE, and DGB.
The minimum borrowing amount is just $100, and you don't need to go through a KYC process to take out a loan. For those investing on the platform, this is risky as there is no guarantee the borrower will repay their debt.
There is also no credit check, which may seem significant to users looking to borrow money, but again is not a responsible choice for investors.
The interest you pay on loan ranges between 12% and 16%, and when it comes to collateral, the platform accepts any of the 64 different cryptocurrencies at an LTV ratio of 50%.
How Fast Can You Withdraw Your Money?
Regarding liquidity, you can withdraw your funds, either partially or entirely, at any time from CoinRabbit.
There are no fees to withdraw or deposit your coins, and you can receive your funds within 24 hours, although some users report receiving the money in their account within just 10 minutes.
A live chat is available on the platform, or you can contact the customer service team at email@example.com. There is also a Telegram chat available for users to reach out to.
Some customers have reported issues with the live chat and found the answers to be insufficient. For us, our questions were answered quickly — within 5 minutes. However, we were not happy with the quality of the answers provided.
Saying that we did receive better answers via email and were surprised at the speed of the response.
CoinRabbit Review Summary
To summarise, we cannot recommend CoinRabbit as a crypto lending platform due to its many red flags. There are a lot of risk factors, and all for average returns. We can neither confirm the legitimacy of CoinRabbit due to the lack of transparency surrounding the platform's team and business model.
Still, when it comes to CoinRabbit, we advise you to avoid depositing any of your digital assets on the platform.
Key Takeaways from our CoinRabbit Review
- No plans to become regulated
- No information about the team
- No KYC
- No team
- Zero statistics
Explore other crypto lending platforms instead.