JPEX platform token JPC plummets by over 30%, internet celebrity Sheng Jieshi: JPEX can't find JPC tokens?

Recently, the overseas exchange JPEX's sponsorship of the "Fight of the Fists" fighting prize money has been exposed as inappropriate. Both JPEX-sponsored media and the highly related exchange CoinW have made relevant statements. JPEX has also just come forward to provide an explanation. Several days later, JPEX's native token JPC suddenly plummeted by more than 30%, leaving the community puzzled about what happened. Internet celebrity Saint Stone also discovered that he couldn't find JPC on JPEX. What is the relationship between JPEX and CoinW?

JPEX Platform Coin JPC Plummets Over 30%

According to data from the JPEX exchange, the JPEX platform coin JPC began to decline steadily from 2:00 am on July 13th. Between 7:30 and 8:30 in the morning, there was a sharp drop, with three precise price spikes. During the same period, the cryptocurrency market did not experience significant fluctuations. The exchange did not make any major announcements on that day.

Interestingly, the JPC community support only stated that this was a healthy pullback and considered it a good time to buy at a discount.

Internet Celebrity Stone Questions: Can't Find JPC on JPEX?

Internet celebrity Stone also noticed the situation with JPC and curiously asked, "Why can't I find JPC on JPEX?" However, later, a netizen reminded that KYC is required to see the JPC trading pairs, leaving him puzzled.

為什麼在JPEX找不到JPC幣呀？ pic.twitter.com/VgDSVCLx0M

— 聖結石 Saint (@Saintjey1113) July 13, 2023

CoinMarketCap Does Not Include, Trading Volume Only on CoinW?

Mainstream data website CoinMarketCap only records the trading volume of JPEX platform coin JPC from another exchange, CoinW.

CoinW Once Held a Large Amount of JPC, Higher Than Its Own Platform Coin

According to CoinMarketCap's online records, as of at least March this year, CoinW had held a large amount of JPEX platform coin JPC, even more than its Bitcoin reserves. To this day, CoinW still holds up to 28% of its asset reserves in JPC, even more than CoinW's own platform coin CWT. Whether the user base of the two platforms overlaps significantly or what kind of relationship exists remains undisclosed.

Relationship Between CoinW and JPEX?

According to community rumors, the winner of the JPEX-organized "Fist Fight of the Century," Zhong Peisheng, is a shareholder of JPEX.

If this statement is true, it would make the relationship between the two platforms more intriguing: JPEX awards bonuses to JPEX shareholders, and after the "Fist Fight of the Century" was questioned, JPEX-sponsored media issued a statement on behalf of CoinW, actively indicating that they will closely monitor JPEX issues and initiate an investigation.

The main trading pair on CoinW exchange is not JPC, but JPC is the second-largest asset in CoinW's reserves, just after USDT, which seems quite unusual. CoinW stated that the JPC stored on the platform belongs to user assets, so CoinW should only have custodial responsibilities. Whether there is a need to investigate the behavior of other exchanges moving assets remains debatable.

CoinW Response: User Choice, Adhere to Responsibility

Regarding the high proportion of JPC tokens on the CoinW exchange, CoinW stated:

"The JPEX project decided to list their token JPC with us for the first time, which was their choice. As the first exchange for the JPEX platform token JPC, users and the project team deposited a large amount of JPC into the CoinW wallet, which is a personal behavior of the project team and users. After the listing, anyone can deposit related tokens into the exchange deposit address. At the same time, to ensure the security of user assets, we have taken multiple measures, including cold and hot wallet separation and anti-hacking rules. Therefore, the assets in the public wallet are only a part of CoinW's assets."

FSC: Exchanges Without Compliance Statements Can Be Fined Up to NT$10 Million

According to a report by ETtoday, the Financial Supervisory Commission (FSC) issued a press release warning the public to be wary of illegal overseas virtual asset platforms. Chang Tzumin, Deputy Director of the Securities and Futures Bureau, stated that there have been investors reporting cases of the largest number of overseas virtual asset trading platforms, primarily because they have not signed compliance statements as required. Chang mentioned that exchanges without compliance statements are not allowed to engage in any transactions; otherwise, they may be fined between NT$500,000 and NT$10 million in accordance with the law.