Singapore-based cryptocurrency exchange DragonEx will temporarily introduce tokenized withdrawal quotas for digital assets as part of addressing current issues.
Marketplace users will receive DragonEx Withdraw Quota (DWQ) tokens. 1 DWQ will allow you to withdraw one asset from the platform, the cost of which is 1 USDT. To receive DWQ, clients need to trade on the exchange, borrow assets or make deposits. When requesting a withdrawal, an equivalent amount in DWQ will be debited from the user’s account.
DragonEx management said that this is only a temporary solution that will help the exchange cope with its current problems. Recall that on October 21, DragonEx announced the suspension of the deposit and withdrawal of digital assets due to a “crisis of confidence” of users in centralized sites amid problems with the OKEx exchange.
OKEx halted the withdrawal of cryptoassets last month after one of the private key holders was unavailable due to an investigation by Chinese law enforcement agencies. DragonEx executives said that after the OKEx “incident”, users lost confidence in exchanges and began withdrawing funds, which negatively affected DragonEx’s operations.
Earlier, the exchange announced the development of a restructuring plan to restore the withdrawal function and did not even exclude the possibility of its closure if it had not been able to carry out the reorganization before November 2. In a recent address to users, DragonEx management said it is looking for outside investment, but it takes time.
DragonEx plans to gradually restore asset stripping. To make this process “less painful”, it was decided to temporarily introduce tokenized quotas. As soon as the exchange becomes profitable again, the site will destroy all DWQ tokens and restore the normal withdrawal function.
