BitMax has come under fire from DeepCloud AI following the exchange’s decision to delist the token on Tuesday. Using a Medium post to hit out at the behavior of the exchange, DeepCloud stated that they had experienced “major issues” with the exchange, citing broken promises, poor marketing, and a lack of communication among other issues. The post was in response to BitMax’s decision to remove the token from the platform due to issue with the token unlocking/vesting schedule and a misreported circulating supply.
BitMax Delists DeepCloud AI
BitMax ran the DeepCloud AI Initial Exchange Offering (IEO) in July, helping the project raise $3 million, before listing it on the exchange upon the conclusion of the sale. However, the relationship has since soured to the point where BitMax took it upon themselves to delist the token barely six weeks after listing it, citing the following reasons for its removal:
- Discrepancy of token unlocking / vesting schedule vs the schedule published in the project’s whitepaper or the schedule communicated to BitMax.io; and,
Lack of proper disclosure on increases to token circulating supply to BitMax.io and the project’s community.
- BitMax claimed in the post announcing the decision that it had taken the drastic step to protect its users, stating that it was “critical to institute a robust Post-Listing Administration process” and that it would “continue enhancing its due diligence screening and rigor of listing requirements for all future projects.”
DeepCloud’s Complaints Backed up by Community
DeepCloud’s response was to list the issues the project had had with the exchange throughout the listing process, describing BitMax’s actions, and those of BitMax CEO George Cao, as “disappointing”. These issues included the mandatory use of BitMax’s own market makers, despite a conflict of interest; poor marketing from BitMax, resulting in DeepCloud stepping in to take over at their own cost; BitMax failing to communicate “for weeks on end”; and BitMax reneging on offers of marketing, exchange support, and strategy planning, eventually handing back market making responsibility to DeepCloud with “no funds left”. Interestingly, DeepCloud also cited conversations they have had with other projects who have found BitMax somewhat troublesome, and signed off with some advice for anyone considering the project:
Other projects have reached out voicing similar experiences with BitMax. At this point in time, any project considering to list on BitMax’s IEO platform should do so with extreme caution.
DeepCloud’s opinion has since been backed up by some within the crypto community, with one BitMax user going into depth about what he sees as “red flags” with the exchange on Twitter as a warning to others:
Some people may have heard about @BitMax_Official red flags popping up. I’ve spoken to multiple people I trust and the situation doesn’t look good. I’ve been a big fan of Bitmax since the initial $LTO run, but now I’m moving on. It’s much bigger than just $DEEP.
— Chase S (@ChaseWS58) October 2, 2019
Sit back folks – there’s going to be fireworks.