JPEX, a troubled cryptocurrency exchange, is moving forward with a plan to transform itself into a decentralized autonomous organization (DAO) and convert user assets into dividend shares. The exchange recently announced the completion of voting for its “DAO Shareholder Dividend Scheme,” with 68% of users voting in favor of the plan.
Under this scheme, users will have the option to convert their currently frozen assets into DAO Stakeholder dividends at a 1:1 ratio. JPEX is also offering a repurchase option at 30% of the conversion price after one year, and 100% repurchase after two years. This plan is intended to incentivize users to lock up their funds on the exchange for an extended period.
To further entice users, JPEX stated that those who participate in the scheme will receive dividends through new token listings and trading fees. Additionally, they will receive a distribution of JPEX Coin (JPC), the exchange’s native token, in proportion to their shareholder dividends. This dividend scheme appears to be an effort to address the liquidity issues faced by the exchange.
However, some users have raised concerns about the implementation of the plan. One user, speaking on the condition of anonymity, claimed that her assets were converted without her agreement or prior knowledge. She stated that she and other users were unable to withdraw their assets following JPEX’s announcement. According to her, assets were converted to JPC, a low liquidity token with limited use cases, leaving users unable to access their funds.
It is unclear whether the individuals quoted in the report voted in favor of the plan, but some JPEX users previously expressed dissatisfaction, claiming they were forced to accept the scheme as there was no option to vote against it on the exchange’s app.
JPEX has not yet responded to requests for comment on these allegations.
This dividend plan comes at a tumultuous time for JPEX. Hong Kong police recently arrested multiple individuals in connection with the exchange, accusing it of operating an unauthorized crypto platform. The Securities and Futures Commission of Hong Kong warned the exchange about its activities and increased its withdrawal fee to nearly $1,000. The police allege that JPEX defrauded at least 2,300 people of $178 million.
In response to the growing concerns surrounding crypto exchanges, Hong Kong authorities have launched a task force aimed at combating illicit activities in this sector. The police and securities regulator are working together to address the issues raised by the JPEX scandal and ensure the protection of investors.
As the situation unfolds, it remains to be seen how JPEX will handle the allegations and concerns raised by its users. The exchange’s move towards becoming a DAO and its conversion of user assets into dividend shares may offer some relief to its liquidity problems, but it also raises questions about transparency and user consent in the decision-making process.
Source link