Crypto Exchange ChilizX Warns Users About Withdrawal Issue
Crypto exchange ChilizX has issued a warning to its users regarding a “withdrawal issue” related to the Chiliz Legacy Chain network. The platform, which focuses on fan token trading, released a statement on January 22, advising users to opt for fan token withdrawals using an alternative network known as Chiliz Chain (CC2). While the ChilizX team assured users that they are actively working to resolve the issue, some users questioned why successful withdrawals were reported on other exchanges using the same network.
CHZ Token Witnesses Sharp Decline
Following the announcement of the withdrawal issue, the native cryptocurrency of the Chiliz ecosystem, the CHZ token, experienced a significant drop of over 12.5%. At present, CHZ is trading below $0.1 and is ranked as one of the worst-performing tokens in terms of price over the past 24 hours according to CoinGecko data.
Chiliz Chain Emerges as Potential Successor
Chiliz is a blockchain platform focused on sports and entertainment that utilizes its native token, CHZ. Within this ecosystem, the Chiliz Chain network has emerged as a potential successor to the Chiliz Legacy Chain. It features an on-chain governance system that is compatible with the Ethereum Virtual Machine (EVM).
Hot Take: Withdrawal Issue Raises Concerns
The withdrawal issue faced by ChilizX has raised concerns among users who question why successful withdrawals were possible on other exchanges using the same network. The announcement led to a significant decline in the value of CHZ token. The incident highlights the importance of ensuring smooth functionality and communication between different networks within the crypto ecosystem. It also emphasizes the need for exchanges to promptly address and inform users about any issues that may affect their ability to transact. Transparency and proactive communication are crucial in maintaining user trust and preventing potential losses.
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