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Since 2 days ago, FCoin, the once much-hyped exchange given its novel token economics, has been experiencing issues.
Announcement of Destruction of Team Tokens
On February 10th, along with OKex and ZB, Fcoin had announced the destruction of 700 million tokens held in the treasury.
After Okex saw significant surge in its token price after announcing its token destruction, ZB and Fcoin followed suit. At 18:00 China time on February 10th, FCoin issued an announcement saying that the team decided to permanently destroy more than 700 million FTs held by the team. The destruction was completed on the same day.
You can follow all the English announcements on Twitter.
Maintenance Following Surprised All Users
But shortly after this announcement was released, the FCoin team issued an updated announcement urgently, announcing the temporary shutdown of the exchange for maintenance, which is expected to take 4 hours. The reason for the maintenance was not stated in the announcement.
Exchange maintenance is normal operation, but FCoin’s temporary suspension this time caught many users by surprise. Many open orders were left hanging.
“Maintenance” to have lasted now 2 days
However, most people at the time did not expect that this much expected 4-hour outage and maintenance would be extended again and again, and now having evolved into FCoin’s first “public relations crisis”.
After the originally promised maintenance time expired, users did not see a resume of services. The platform was silent as well, until the next day.
Only on February 11th did come another official release of extended maintenance, saying that the team has discovered system loopholes in its risk control segment while doing maintenance.
At this point, many users in the Fcoin user telegram groups have voiced their concerns. Nevertheless, no official team members from Fcoin in operations, public relations came out to explain the extension of the outage maintenance.
One speculation from one individual in the telegram group claimed that the CEO Zhang Jian “made the decision to destroy 700 million FCoin Tokens held by the team without their consent during the day, and the team expressed dissatisfaction to Zhang Jian in the evening. Zhang Jian did not respond. Subsequently, some tech teams logged in to the internal site and deleted the website module in the background. Announcing the maintenance of the official website. “
Additionally, Fcoin Europe has shared some responses below but the users were still not happy.
Now System Still Down; Withdrawal Applications are Available Now
On the evening of February 12, two days have passed since FCoin ceased maintenance. The Fcoin exchange once again issued an announcement. It claimed that:
- The exchange did not get hacked
- Due to factors such as loss of key personnel of the team and severe damage to some systems and data, the system could not be restored in a timely manner as planned
- The team would accept withdrawal applications are available to users for withdrawal by emailing firstname.lastname@example.org
There is still ongoing speculation that the founder of Fcoin has run off with user deposits and ongoing internal team divide. We will continue to monitor the latest.