JPEX Unveils Plan to Transform into DAO and Convert User Assets
Cryptocurrency exchange JPEX has announced its plan to become a decentralized autonomous organization (DAO) and convert user assets into dividend shares. The “DAO Shareholder Dividend Scheme” received support from 68% of users, according to the company’s blog. Under this plan, users will have the opportunity to exchange their locked-up assets for DAO dividends at a 1:1 rate. After one year, users can choose to sell back their converted assets at 30% of the initial conversion price or opt for a full buyback after two years.
Prior to this plan, JPEX promised that participants would receive dividends in the form of new tokens and trading fees, as well as a share of JPEX Coin (JPC), the exchange’s native token. This initiative aims to incentivize users to keep their assets on the platform despite liquidity challenges.
Concerns Over Unauthorized Asset Conversion and Recent Arrests
However, reports suggest that some assets were converted without users’ consent or prior notification. Users have expressed frustration over their assets being changed into JPC, a token with limited liquidity and utility.
This plan follows recent arrests made by Hong Kong police in connection with JPEX. The regional securities regulator accused the exchange of operating an unauthorized crypto platform and stealing $178 million from approximately 2,300 people.
Hot Take: JPEX Faces Challenges Amidst Transformation Efforts
JPEX’s move towards becoming a decentralized autonomous organization demonstrates its commitment to innovation in the cryptocurrency space. However, concerns regarding unauthorized asset conversion raise questions about user consent and transparency. Additionally, the recent arrests and accusations against the exchange further complicate its journey towards transformation. As JPEX works to regain trust and address liquidity challenges, it must prioritize user communication and ensure that its initiatives align with the best interests of its users.
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