CoinEx Boosts Security and Stability with Special Treatment Rules for Investors to Identify Risky Tokens

As a global cryptocurrency exchange, CoinEx has always been committed to providing users with secure and stable cryptocurrency trading services. To provide high-quality cryptocurrency investment options to global users while protecting the legitimate rights and interests of platform users, CoinEx introduced the Special Treatment (ST) rules in 2023 to help investors identify risky tokens and pay attention to project risks.

The ST rules are measures introduced by CoinEx to protect user rights and improve trading security. Specifically, they refer to the risk warning prompts for projects that may face special treatment risks on CoinEx which covers several aspects of risk identification, including overall project, financial, and behavioral risks.

According to these rules, CoinEx will treat tokens with potential risks and remind users to pay attention to the risks associated with these projects. If a project violates one or more provisions of the CoinEx ST rules, it will be marked as ST and displayed on the currency information page and trading area. The CoinEx team will also conduct a strict review of the project. If the project shows improvement during the observation period, the ST label will be removed. Otherwise, the project will be delisted.

Tokens marked with ST will be placed in a separate trading area.

CoinEx will add the ST label after the token name in the trading pairs so that users can identify them quickly. This measure also provides additional information guidance for users, reminding them to be more cautious in trading.

CoinEx will conduct regular tracking and reviews of projects already listed on the platform, and decide whether to add or remove the ST label for tokens based on the latest results. The CoinEx team will consider the following factors during the review:

1/ Project and Team

• Major changes in the project team, products, and business models require notification to CoinEx for re-evaluation. If no notification is given and changes are made independently, the platform can delist the project.
• Unethical or fraudulent behavior by the project team, such as falsification of personal information by founders, co-founders, advisors, or involvement in market manipulation, major legal issues, and other legal problems.

2/ Token Factors

• Failure to implement lock-up mechanisms or undisclosed token transfers of locked-up tokens.
• Abnormal increase in project token supply.

3/ Technical Development, Mainnet, Smart Contract Factors

• Lack of significant progress in the product, with no disclosure of project updates, development progress, version updates, team dynamics, etc., on social media or official websites for a long time.
• Failure to update code repositories or infrequent updates.
• Security vulnerabilities in the project’s mainnet, such as prolonged shutdowns or abnormal forks.

4/ Community Building and Operational Factors

• Significant deviations in information disclosure, misleading investors, and trading platforms.
• Website inaccessibility, information disorder, and lack of maintenance in social media and communities for an extended period.
• Failure to respond to or address community inquiries.

The CoinEx ST rules monitor the behavior of project parties and take corresponding measures for projects and tokens with potential violations. Additionally, CoinEx will conduct regular risk assessments and project reviews, investigate projects suspected of violations, and decide whether to suspend the trading of their tokens based on the circumstances. Through this series of measures, CoinEx hopes to protect investors from potential risks and losses as much as possible.

While introducing the ST rules, CoinEx reminds users to be cautious in trading. Investors should conduct comprehensive research and analyses of tokens, including their background, team, technology, and market prospects, to fully understand the risks and potential of the projects. During the trading process, users should make reasonable investment decisions based on their risk tolerance, while paying attention to risk management and fund security.

The ST rules introduced by CoinEx provide important tools and information for investors to identify risky tokens and pay attention to project risks. At the same time, investors should make full use of these rules and make rational investment decisions based on market conditions. CoinEx will continue to promote the healthy development of the CoinEx ecosystem and strive to provide users with better cryptocurrency trading experiences and more innovative and meticulous services.

About CoinEx

Established in 2017, CoinEx is a global cryptocurrency exchange committed to making trading easier. The platform provides a range of services, including spot and margin trading, futures, swaps, automated market maker (AMM), and financial management services for over 5 million users across 200+ countries and regions. Founded with the initial intention of creating an equal and respectful cryptocurrency environment, CoinEx is dedicated to dismantling traditional finance barriers by offering easy-to-use products and services to make crypto trading accessible for everyone.