Cryptocurrency exchange, Liqui, is at the center of a fierce firestorm over claims it is propagating an exit fraud. The allegations stem from the exchange giving people as little as 15 days to withdraw their holdings after delisting tokens.
Withdrawal Deadline Concern
Fifteen days to make withdrawals is not enough, given that there could be some people who are away on vacation. The fact that that there could also be some sick people who could miss the deadline day is also not going well with people.
“Once the withdrawal deadline has been reached, withdrawals will be disabled, and the asset will be fully decommissioned. From this point forward, we will be unable to process withdrawals of impacted assets. It is imperative that customers withdraw delisted tokens by the withdrawal deadline,” Liqui informed in a statement.
Liqui is increasingly removing support for some coins – a move that has affected even those with high traded volumes. BAT is one of the coins that the exchange no longer offers support. Altogether, the delisting drive has so far affected 13 tokens.
A move to delist Basic Attention Token has so far attracted the most attention. The move came amidst reports that Coinbase was in the process of listing the token. The token consequently experienced a spike in price from lows around $.16 to highs over $.24.
Liqui Delisting Drive
Liqui has so far given its 290,000 users a total of 29 days to remove their funds from the exchange. Likewise, it would make a lot of sense for the exchange to extend the deadline should 1.4 million of the tokens remain in the exchange after the deadline.
Failure of the exchange to extend the deadline would indicate that the exchange was itself engaged in trading. However, it is worth remembering that the exchange has never acknowledged trading against clients.
Liqui delisted SONM (SNM) token on October 20, 2018, and gave people until November 11, 2018, to withdraw their holdings. Likewise, the token experienced strong market upward pressure. The exchange was able to sell its holdings at a higher price than they were worth at the time as a result.
In response to the delisting, over 2.3 million SNM tokens found their way onto Binance exchange. Similarly, Liqui returned with an additional 34,000 Bancor Network Tokens (BNT) for $1 USD each. Initial indication is that it also bought 4.1 million DNT tokens worth $0.024 USD each.
Risk Disclosure
This article should not be taken as, and is not intended to provide, investment advice. Users are ultimately responsible for the investment decisions he/she/it makes based on this information. It is your responsibility to review, analyze and verify any content/information before relying on them. Trading is a highly risky activity. Do consult your financial adviser before making any decision. Please conduct your thorough research before investing in any cryptocurrency and read our full disclaimer.
Join our Telegram Group To Stay Up To Date With Crypto News
