DragonEx freezes all exchanges on its platform

tech bit
  • Singapore exchange platform suspends further withdrawals and deposits in all currencies
  • OKEx continues to affect other global crypto exchanges
  • DragonEx hopes its restructuring plan will make the platform tenable by November

In another sequel to the disruption caused by the OKEx exchange’s withdrawal suspension on 16th October, DragonEx has said OKEx issues necessitated a freeze on its own exchange platform. DragonEx, a cryptocurrency exchange and trading service based in Singapore, has been hit by a panic run on funds. In a 21st October statement, the exchange said the unusual decision was required due to the deterioration of its service provisions following this demand for funds.

The exchange further called the OKEx suspension a trigger for a ‘crisis of confidence in the central exchange’. The position of the crypto exchange has been precarious in the last year, following a $7m (USD) hack in March 2019. The hack involved a key being stolen and the mass movement of assets. The crypto exchange was unsuccessful in recovering the stolen assets, making the recent run on its funds a serious challenge to its position.

How does DragonEx compare?

The struggling exchange has adopted a starkly different position from Tron. Tron has announced, as reported previously, additional measures to support users on its platform who own Tron tokens (TRX) on the OKEX exchange. Tron has now opened manual withdrawal options to reassure users their assets are protected.

The Singapore exchange has announced it is looking into a restructuring plan it can launch for November 2020, by which time it hopes the platform can resume. However, it admits the possibility this may fail, leading to a rehabilitation program that would indicate the exchange is in jeopardy. After launching over eight years ago, the exchange has struggled to maintain users’ confidence.

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Sophia Atkinson

Written by Sophia Atkinson

An enthusiastic writer and analyst, Sophia worked in data and media consultancy before joining Cryptopolitan. She enjoys finding the crypto stories that matter and bringing them to readers. Outside of writing, Sophia plays saxophone in a Cuban big band.