JPEX Crypto Exchange Launches Asset Lock-Up Plan, Sparking User Concerns

JPEX crypto exchange is progressing with plans to transition into a Decentralized Autonomous Organization (DAO) in a recent development. This transition involves converting user assets into dividend shares with the added incentive of locking them up for two years.

On October 4, JPEX announced that the DAO shareholder dividend program vote ended on September 28, with 68% user support.

Under this scheme, users can convert their frozen assets into DAO Stakeholder dividends at 1:1. JPEX introduced a repurchase option, buying assets at 30% of the conversion price after one year and 100% after two years.

Hong Kong’s securities regulator and police force set up a task force to assist with the detection of suspicious activity at crypto exchanges, a step that follows the JPEX blowup https://t.co/Vg1sqLoXXV

— Bloomberg Technology (@technology) October 5, 2023

JPEX users in this scheme receive dividends through methods such as new token listings, trading fees, and JPEX Coin distribution.

The program encourages users to keep funds in the exchange, but one user voiced concerns about maintaining anonymity. The user alleges her assets were converted without consent or prior notice, sparking concerns within the community.

This highlights JPEX’s challenges, including liquidity and concerns over transparency and user consent in asset conversion processes.

As the controversy unfolds, the crypto community closely watches the developments surrounding the exchange’s DAO transformation and its impact on user assets.