Ioption is going Out of Business – The Full Story
Ioption is going out of business. Employees report of massive dismissals, yet there’s no official confirmation of this by the company officials. This surprising news was also confirmed by well established sources within the Binary Options industry. At the moment their websites remains active, and there’s no notice of any problem. Our team is positive we can expect official announced in the following days.
These news hits many traders as well as the ThatSucks.com (former BinaryOptionsThatSuck.com) team with absolute surprise. We know Ioption for quite a few years now, as this broker was among the first brokers to offer binary options to traders. This SpotOption’s white label was here long before the 2012 boom of new brokers and made itself quite known among binary options traders and affiliates. Therefore it is not surprising I sent my team sniffing around any pieces of information, instead of having fun this weekend. This of course includes myself; what a lovely Sunday for work.
The Ship Goes Down – How the Problems Begin
So how comes that a well known broker goes out of business? We had to poll some strings and bather some friends and colleague in their weekend rest, yet it was worth it. Eventually, what we have here is a story of “thing went wrong”, oh, such unlucky.
First thing we found out was that for over a month now, Ioption clients simply can’t trade. It turns out that in order to comply with the new regulations in EU, Ioption asked their trading platform provider, SpotOption, to create some changes in their platform so it’ll suit the regulator requirements. Appranalty those neccessery upgdates in software took too long, causing many problems to existing and new clients. One thing every vendor knows is never be closed to business. Ground rule.
In a nutshell, this service break for over a month now was just the beginning of this saga. Hold on, there’s more to come
Murphy: Anything That Can Go Wrong, Will Go Wrong
Second rule every vendor knows is, spear some liquid capital. Unfortunately for Ioption, Netpay and Liberty Reserve are about to bankrupt. These e-wallet companies are holding thousands of dollars of Ioption capital in dead accounts. And if that’s not bad enough for Ioption, several sources told BOTS team Ioption’s new partner was unhappy about the situation of the company. The new partner, who invested up to a six figures in the company, claimed that after signing the contract, he noticed the company was not doing well and he was represented with false information about the company’s situation. As a result he decided to freeze his investment and to prevent the company from using this cash. The only option left for Ioption’s management was selling. Every captain knows that when the ship goes down, he needs to pick an enthusiastic sailor as the new captain, and bail out. But as Murphy likes to say, when things might go wrong, they go wrong. Negotiating with BBinary regarding a possible purchase was never ripen following BBinary’s past engagements in the US. No other Binary Options broker had any real interest in taking over this sinking boat. The Beatles call it yellow submarine.
Apparently, being first is not always a receipt for success. Way I see it, there are 3 more important things a company must have to succeed: Luck, luck and luck, again. This is a wakeup call for all binary options brokers out there – Even the best binary options brokers could go bankrupt sometimes.