Offline, online, dependent, uncertain – why Blocktrade is becoming an increasing risk for customers

After days of being unavailable, the trading platform is back online. But technical failures, dependence on ECS and entanglements with the insolvent myWorld Group are raising existential questions for investors.

Technical failures as a warning sign

For several days, Blocktrade was unavailable, either via the app or the web interface. For investors, this meant no access to their accounts, no way to close positions or initiate withdrawals. In a volatile market, even hours of downtime can cause significant losses.

The fact that an exchange advertised as ‘EU-regulated’ is offline for such a long time without providing a detailed explanation to users raises considerable doubts about its technical stability and internal risk management.

Illiquidity due to ECS dependency

According to data from CoinMarketCap, Blocktrade is extremely one-sided: Around 88.5% of trading volume is accounted for by the eCredits (ECS/EUR) pair. Its own token, BTEX/EUR, accounts for only 11.5%.

Such a concentration on a single project-related coin is highly risky for a trading platform. If demand for ECS collapses, the market could dry up immediately, with the result that investors would no longer be able to sell their holdings.

The situation is further exacerbated by the price performance of the company’s own token, BTEX. While Blocktrade issued shares (‘Class B shares’) at €0.216–0.24 per share in the 2023/2024 capital rounds, the BTEX token is currently trading at around €0.0021. For many users, this discrepancy is disappointing: there is a wide gap between the value proposition and reality, and the already low tradability of the tokens reinforces the feeling of being stuck with illiquid assets.

Reputational risk due to myWorld entanglements

Blocktrade was marketed in Hubert Freidl’s network as a ‘reputable European bridge’. Many investors therefore viewed the platform as a payout channel for their investments. With the bankruptcy of myWorld, Blocktrade is now also facing criticism.

The close link to an insolvent MLM network could massively damage confidence in Blocktrade in the long term, not only among investors, but also among banks, partners and supervisory authorities.

Legally caught between two stools

Particularly problematic is the fact that many users did not come to Blocktrade directly, but via myWorld/Lyconet programmes. These programmes sold ‘benefit vouchers’, share-like investments or token rights – with the promise that these would later be tradable via Blocktrade.

With the insolvency of myWorld International AG, investors now feel blocked. According to numerous reports from those affected, many of the claims brokered there appear never to have existed as independent assets held in custody by Blocktrade. For these investors, Blocktrade does not recognise them as direct contractual partners, as there is no direct contractual relationship without their own Blocktrade account.

The situation is different for customers who have actually opened an account with Blocktrade and agreed to the terms of use: they are contractually entitled to manage their assets and, within the framework of the terms and conditions, also to make payouts and transfers.

Lack of transparency on the part of management

Despite repeated requests from investors and the media, Blocktrade has not yet issued a clear statement on the situation.⁷ Neither on the legal recognition of the tokens brokered via myWorld, nor on possible payout options or a plan for the investors affected.

This information policy exacerbates the uncertainty: customers do not know whether their assets are secure, nor whether and when they will be able to freely dispose of them again.

Conclusion: Investors bear the full risk

The combination of

repeated technical failures,
extreme dependence on a single token,
legal uncertainty for investors without a direct Blocktrade account, and
a lack of transparency on the part of management

makes Blocktrade a high-risk scenario for many customers.

For investors who have acquired supposed token rights exclusively through myWorld/Lyconet, there is a risk that their claims will be lost in the insolvency of myWorld and cannot be realised via Blocktrade. Customers with genuine Blocktrade accounts and assets in custody, on the other hand, can invoke the exchange’s regular withdrawal and transfer rules as long as the technical stability of the platform is guaranteed.

Note:

This article is a journalistic analysis. All information is based on publicly available sources. Quotations are made in accordance with Section 51 of the German Copyright Act (UrhG). Blocktrade was invited to comment, but no response had been received by the time of going to press.

Sources

Own review (Blocktrade app/website offline, August 2025), user reports in public groups (e.g. Facebook, etc., accessed on 29 August 2025).

CoinMarketCap – Blocktrade Markets (accessed on 30 August 2025).

Feedback from investors in Facebook groups (e.g. post from 12 August 2025), accessed on 30 August 2025.

No documented general statement from Blocktrade; plausible according to the terms and conditions, as there is no contractual relationship without an account.

Blocktrade Terms of Use – Withdrawals section (‘User may immediately withdraw all Assets …’), as well as product pages on ECS (‘Transfer eCredits easily to and from the eWallet App’);

Own enquiry to Blocktrade S.A. dated 27 August 2025; no response by 31 August 2025.