Midnight Announcement of Delisting 57 Coins... Suspension of KRW Deposits Too

Increased Risks for Small and Medium-Sized Cryptocurrency Exchanges

[Asia Economy Reporter Park Sun-mi] A company that abruptly ended support for trading nearly 60 coins in the middle of the night and then announced a mass delisting is facing heavy criticism.

According to the cryptocurrency industry on the 19th, the exchange ChainX announced on the night of the 16th at 11:00 PM that it would delist 57 coins. Earlier, on the 7th of this month, these 57 coins had been designated as watchlist items, but without any prior notice, the coins were delisted starting from 11:00 PM on the 16th, and the related announcement was made at 11:16 PM.

In the notice, ChainX listed the coins for which trading support was ending and explained the reason behind the decision, stating, "Due to low liquidity, there is a risk of price manipulation exposing investors to potential losses. We requested the project teams to take measures to improve liquidity supply over a considerable period, but their responses and actions were inadequate. Therefore, we judged that measures to protect investors were necessary."

They also suspended deposits in Korean won. On the same night, ChainX issued a separate notice stating, "Deposits in Korean won will be suspended from the time of this announcement," and advised, "Those holding Korean won should withdraw their funds by 6:00 PM on August 16."

Cryptocurrency exchanges must complete business registration by September 24 under the Specific Financial Information Act. If they fail to register, they must proceed with closure, and a wave of closures among small- and medium-sized cryptocurrency exchanges is anticipated. As a result, with mass coin delistings and exchange closures occurring ahead of September, concerns are growing that investor damages such as 'coin runs' and 'exit scams' may occur.

This content was produced with the assistance of AI translation services.