- Cryptocurrency exchange, FCoin After reporting insolvency on February 27, is now making scraping attempts to get back into the game.
- FCoin reported a shortage in assets worth $130 million, and paused all trading, buys and sells on their platform due to loss is customer funds.
- The company hopes to build a technical solution that will help get Fcoin and FMex websites back up and running so that users can regain access to trading on the platform.
After reporting insolvency on February 27, cryptocurrency exchange, FCoin is now making scraping attempts to get back into the game, claiming to return customer funds and make technical changes to the platform that will help them stay afloat. As optimistic as this outlook seems for the Chinese cryptocurrency firm, this isn’t the complete reality, and neither will this comeback, be the easiest for the business.
FCoin reported a shortage in assets worth $130 million, and paused all trading, buys and sells on their platform due to loss is customer funds. The firm gained fame for adopting a controversial trans-fee mining model that even resulted in bringing some of the largest trade volumes to the exchange.
FCoin’s New Plan
In this new plan, the company has adopted a new transition interim committee to lead the resurrection, and the members of this community are chosen from the community members and the community committee.
The company hopes to build a technical solution that will help get Fcoin and FMex websites back up and running so that users can regain access to trading on the platform. The newly revamped website will be controlled entirely by the community, decentralising the entire ecosystem.
The transition committee will also be responsible for leading an asset-to-debt or asset-to-equity initiative to return customer funds. The new decentralisation aspect is a welcome change since it shows that the authorities at FCoin realise that centralised control of the platform might provide not future if the company was to come back. The insolvency, although it is a reminder that the company laid their hands-on customer funds and used it in private investments or other perpetual contracts perhaps. As concerning as that is, doing so without proper regulation and supervision is what made FCoin insolvent.
Zhao Compares Fcoin with Mt.Gox
Founder of RenrenBit, Zhao Dong, stated most companies misappropriate funds but not without supervision and regulation. Zhao also bought up the example fo Mt.Gox as a reminder that regulation is a necessary aspect in the cryptocurrency industry to the large possibilities of fraud and the infancy of the industry.
Zhao also suggested that FCoin must rather start by clearing out its balance sheet by coming clean about how the asset shortage came about, and more data on the transition committee should be revealed. Zhao’s concern is that, in the path for decentralisation and transparency, the company is again trying to hide the past, which shouldn’t be the case.