Current Blocktrade update – basic knowledge about a dubious network of FinTech, speculation and lack of transparency
‘Dear Block Trade Community…’, this is how the announcement of another Block Trade update begins. But before the community turns its attention to the latest developments, some basic information about eCredits and Block Trade should be considered.
The crypto world is a field of tension between innovation, risk and a lack of transparency. Two companies that have recently come under increasing scrutiny are Block Trade and eCredits (ECS). While Blocktrade operates as a crypto trading platform under changing ownership, eCredits is struggling with massive losses in value and questionable business models. A critical analysis shows: Both companies are backed by opaque networks and complex financial structures, which should be alarming for investors.
eCredits: From promise of payment to worthlessness
eCredits (ECS) was originally intended to serve as a cryptocurrency for everyday purchases from local merchants. However, the reality is quite different. Its delisting from the crypto exchange EXMO in February 2024 has drastically affected its liquidity. Another problem is its extreme price volatility. In December 2024, ECS reached a high of 0.002916 US dollars – only to crash to a low of 0.0002400 US dollars just a few months later. A sign of a lack of trust and possible manipulation?
Blocktrade: A network of opacity and influence? Blocktrade SA, a crypto exchange registered in Luxembourg, has a turbulent history. The platform was taken over in 2022 by Web3 Investco AG before an allegedly ‘experienced’ Estonian FinTech investor group took over the company in June 2024. But who is really behind this new chapter?
Fred Kaasik, an Estonian entrepreneur with various ties to the financial sector, initially led the takeover, but was replaced as CEO within a few months. Instead, the FSR Group took over the majority of the voting shares. What is interesting here is that the FSR Group is hardly known and its connections to Kaasik and the original group of investors are completely unclear.
Blocktrade and Lyconet – a tainted past
The links between Blocktrade, Lyconet and Hubert Freidl raise significant questions about the crypto platform’s reputation. The shareholder resolution of the EliteClub Foundation, based in Dubai, documents these links and suggests that Blocktrade could face serious challenges in the near future. The lack of regulatory supervision further intensifies these concerns: according to an assessment by Cashback Forex, Blocktrade is not subject to any state regulation, which poses significant risks for investors.
High risks for investors
Traders Union rates Blocktrade with only 2.74 out of 10 points – a devastating verdict. Customers are increasingly dissatisfied, which indicates a lack of transparency, uncertainties in the business model, and potentially problematic structures.
Conclusion: hands off?
Both eCredits and Blocktrade are showing worrying developments. ECS is hardly tradable anymore after heavy price losses, while Blocktrade suffers from constantly changing owners and a lack of regulation. The unclear connections between Fred Kaasik, the FSR Group and previous owners raise doubts about the platform’s long-term reliability.
Investors should therefore exercise extreme caution and not be blinded by glossy promises. In the crypto world, more than ever, if you don’t look closely, you risk becoming part of a questionable financial experiment.
Note: And as always, those affected are welcome to comment on this, or if someone has more or different information, they are welcome to share it with us. We are not interested in making false claims and our primary goal remains the provision of complete documentation.
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