Statement on Recent Crypto Exchange Liquidity Issues
As many of you may be aware, a major crypto exchange (FTX) has experienced adverse liquidity issues over the past week. Tokenize Xchange (Tokenize) has received inquiries from some users during this time, asking whether our own exchange is likely to be affected in a similar fashion.
In the past few days, we are unable to respond promptly as we are putting priority to facilitate our user’s withdrawal process and we seek your kind understanding.
An observation over the past few days has been that Tokenize received a significant inflow of assets. This is presumably from users leaving the distressed exchange and redepositing the crypto assets into Tokenize. Tokenize Xchange is increasingly being seen as a safe haven during this period.
Given how recent events have thrown a spotlight on liquidity issues in crypto exchanges, it’s important for Tokenize to clarify how our business is different and why it’s insulated to a large extent against such liquidity issues.
Firstly, and most importantly, Tokenize has no exposure to the FTT Token nor outstanding loans to FTX or its associated businesses.
Secondly, we have a dedicated risk team whose job is to continually assess Tokenize’s financial health.
Thirdly, Tokenize’s own proprietary Token, TKX, is not used as collateral for loans and has no exposure to debt.
Finally, Tokenize continues to communicate actively with MAS and financial regulators in Asia to ensure compliance, both with KYC standards, as well as recommended core capital adequacy.
Tokenize Xchange aims to be a market leader in setting compliance standards for crypto exchanges in Singapore and Asia as a whole. Building our suite of services with compliance and security in equal measure, as our foundation pillars, is, we believe, the right long-term call. We take seriously the concerns of our users and we will continue to minimise risk for our customers moving forward.
Cryptocurrencies are subjected to high market risk and volatility despite high growth potential. Users are strongly advised to do their research and invest at their own risk.