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- ChaoEx is facing severe debt issues as a consequence of its decision making process.
- The founder Jin Jingguo disclosed the financial difficulties faced by the platform, with a reported fund gap of millions of dollars.
- The founder in a recent interview conducted by Honeycomb claimed that theft and user arbitrage are the two main problems associated with the present financial condition of the platform.
According to recent reports digital asset exchange platform ChaoEx is facing severe debt issues as a consequence of its decision making process. The founder Jin Jingguo disclosed the financial difficulties faced by the platform, with a reported fund gap of millions of dollars. The users of the platform have also continuously reported technical problems associated with the platform.
The founder in a recent interview conducted by Honeycomb claimed that theft and user arbitrage are the two main problems associated with the present financial condition of the platform. However , the decision making process of the company also accompanies the same. He also ensured that he will soon find the appropriate solution to allow the blocked users to resume their withdrawal services. Ultimately , regaining the trust of the customers becomes an important subject that requires to be given due attention.
In the interview Jin admitted that the debt of the platform aggregated to a sum of $1 Million.The founders new plan is suspected to be the cause of the financial turbulence.Investor Wu Han (alias) claimed in the interview that a batch of digital assets were recharged in the speculated network in 2017. As of now, there are still 160778 NULS (Nash) and 0.2 BTC (Bitcoin) and 0.28 ETH (Ethereum) which can not be deposited on the speculator online.
The Cause
The difficulties faced by the users in accessing their crypto-assets were detected by sorting out the official telegraph group of Zake.com. The explanation given by the staff officials of the platform kept changing from one reason to another. The initial explanation of “manual review efficiency is slow” and “system update” shifted to “financial audit”. Additionally it was reported that users with a large withdrawal amount found it difficult to pass the platform’s withdrawal review. As a consequence, investors have started to lose their patience and hope on the platform’s performance.
The exchange platform finds its origin during the year of 2017 when it was established by Jin Jingguo where it was able to attract early investors and users. The platform came to a point where it successively started to fall into unrecoverable traps. A similar instance was recorded in 2019 when millions of coins were stolen from the platform. It is rumored that he broke his position after doing futures, which led to a growing capital gap and entered a vicious circle. However , in April, the founder denied the rumors but admitted himself as the source of the problem.
The founders stand
But it seems to look like the founder has not lost his hope. This was ascertained when he assured that he was working on all possible ways to tackle the problem. Jin Jingguo said that they only recovered about 200,000 US dollars, but the shortfall of funds in the account is close to millions.
CHEX, the first token of the platform , was launched on January 17, 2019, and the opening price was 0.0067 US dollars. The current offer price is 0.0018 US dollars, a decrease of 73%. Subsequently the coin CHE was issued , which unfortunately could not escape the plunge .Eventually, ten days after its launch , the price of CHE rose to a maximum of $ 0.012, a 500% increase . The raise did not last long when the price went all the way to the current $0.0039 and fell 67% from the historical high.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
