Friday, October 4, 2019 – BitMax.io, an industry leading digital asset trading platform, announced that there has been significant misrepresentation of facts and allegations against BitMax.io and its team in the follow-up to its delisting decision of DeepCloud AI (DEEP). This announcement is intended to help users to gain full transparency in the accuracy and completeness of key facts around this matter.
First, DEEP project provided false information to both BitMax.io and investor communities regarding private / presale investor token allocation and vesting schedules. As a result, additional 49% were released over first day, and over 3,000,000 DEEP within the first 3 months.
Secondly, actual circulating supply remains uncertain to this day due to further discrepancy and lack of project communication.
As is known to all, initial circulation supply, token allocation and cost basis info are extremely critical to effective operation and trading quality of any third-party liquidity provider / market maker. Inaccurate and incomplete information from DEEP made it impossible for them to assess key support and resistance levels and effectively manage trading capital, especially in situations where there was decreasing organic buy orders.
Also, all the orders posted from DEEP’s contracted liquidity provider were passive “Maker orders” in order to provide liquidity with and minimize market impact for traders. This is a key requirement for any liquidity provider to operate on the platform.
Last but not least, BitMax.io utilized principal capital to conduct the $300,000 buy-back program of DEEP. This capital came directly from a segregated account owned by BitMax.io, NOT the account holding capital for liquidity provision.
As noted earlier, the BitMax.io team will continue enhancing its due diligence process and listing requirements for all future projects. The platform will also seek to bring on more institutional market makers / liquidity providers in continuous support of a liquid and orderly trading market. In the interest of BitMax.io users, the robust Post-Listing Administration process is being implemented by working with all listing projects for ongoing monitoring.
This is a great move by the BitMax team to ensure that misconceptions and misrepresentations are reduced. It's a good strategy to continue project monitoring even after listing to safeguard the interest of the users of the trading platform.
Yeah, totally understandable that they delisted DEEP from their exchange. They have a responsibility to their users to ensure that only trustworthy projects are traded on BitMax.
True this. This is pure fact. They have to ensure that their customers and platform users are protected at all cost from antics of projects like $Deep
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I love what the team did, there are so much project like DEEP. Investors need to be protected from scam
Best to read about a project and how much they achieved before investing. There are other IEO projects on BitMax doing great. I can’t say why Deepcloud is different.
Dude read the report and if possible read again and again. Deep token is all @ fault here. Fact is Bimax also share in the blame as well.
It’s very important that projects stay transparent. Really surprised to see deep getting delisted, but it’s great to see BitMax giving some explanations on team’s decision.
it's quite disheartening that DEEP provided false information to both investors and BitMax. I commend the BitMax team for their due diligence and monitoring strategy. This should serve as a warning to other projects whose strategy is built on falsehood and compromise.
I think this was deserved. Projects with fake numbers need to be taught lessons.
Lol, bitmax did a wondeful job i like the fact that they are securing their patform. Its a good thing
This article really did justice to certain Grey areas and its just bullshit of deep token trying to smear Bitmax into controversy!
If there is anything I know of Bitmax is the fact that they are one hell of a transparent company trying to do the right thing.
This statement i believe should address the lingering doubts in the community, deepcloud should address the issue in their community or provide substantial facts to buttress their claim
Transparency is really important in every business. If there had been enough transparency from the onset, I am sure things wouldn't have come to this.
That's the fact, nothing beats transparency and i believe other brands must have learnt from this experience
Most definitely, if there is any problem with transparency, it puts the exchange in a difficult position.