Trouble for JPEX Exchange as Controversy Surrounds Asset Lock-up Plan
The Hong Kong-based crypto exchange, JPEX, is facing controversy over its recent asset lock-up plan as it aims to transition into a decentralized autonomous organization (DAO). The exchange intends to convert user assets into dividend shares and encourages users to lock them up for two years.
Majority of Users Support DAO Plan
JPEX announced that 68% of its users voted in favor of the DAO shareholder dividend program after a completed referendum. Under this proposed scheme, users can convert their frozen assets into DAO Stakeholder dividends at a 1:1 ratio. Additionally, JPEX offers a repurchase option after one or two years.
Incentivizing Users to Keep Funds on the Platform
JPEX aims to incentivize users to keep their funds on the platform, which has been facing liquidity issues. Users who agree to the scheme will receive dividends from JPEX through a new token listing, trading fees, and the native token, JPEX Coin (JPC).
Controversy Arises Over Forced Conversions
Controversy has arisen as some users claim their assets were converted without their agreement or knowledge. They have also reported difficulties in withdrawing their assets following JPEX’s announcement of the plan. Users allege that they were forced to accept the program without the option to vote against it.
Legal Troubles for JPEX Exchange
JPEX’s dividend plan coincides with legal troubles for the exchange. Hong Kong authorities have arrested multiple individuals connected to the platform, accusing it of operating an unauthorized crypto platform and defrauding thousands of people.
Hot Take: JPEX Exchange Faces Backlash Over Asset Lock-up Plan
JPEX’s asset lock-up plan has sparked controversy as users raise concerns about forced conversions and lack of voting options. While the exchange claims majority support for its DAO plan, some users have reported difficulties in withdrawing their assets and finding their converted tokens to be of little value. These issues come at a time when JPEX is already facing legal troubles, further tarnishing its reputation. It remains to be seen how the exchange will address these concerns and regain user trust.
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