Add.xyz Final Statement on Kucoin Hack
The community have been eager to receive an update on correspondence and discussions between the Add.xyz Team and Kucoin. Since then, under 50% of the projects affected (92/200) by the Hack have carried out centralised remedial actions such as token swaps and re-issuing of tokens. Other projects have been unable to perform token swaps for various reasons.
Following legal advice and guidance, in relation to the nature of our work around privacy and standing behind an argument around decentralisation. Privacy has and is becoming a focal point of contention within the industry and in order to stand behind our products which protect and defend users, actions such as a token swap would compromise this.
We have been assured, as all projects have, that Kucoin’s insurance fund will be ample enough to cover the losses by their users, as such, Add.xyz ($PLT) joins the ranks of other projects in being unable to perform a token space.
We’re primary unable to perform a token swap due to legal issues around potential securities violations, the breach in decentralisation and the future compromise of our privacy based products, the intensity of actions by authorities against crypto exchanges offering derivatives for retail use, the complexity within our smart contracts and the lack of communication from Kucoin. Our last correspondence from the Kucoin team was on September 29th, over three weeks ago.
The project feel that there has been adequate time in order for Kucoin to respond, but we have not had the privilege of receiving a response. As such, Add.xyz will not be performing a token swap, but opt for the Kucoin Insurance Fund.
Updates for the Community:
- A token swap will not be performed in relation to the Kucoin Hack
- Trading can resume on all platforms, both centralised and decentralised.
- All users not affected will not need to carry out any action.
- We have asked Kucoin to keep trading suspended on $PLT pending clarifications on the status of our loss of our liquidity.
- Affected users should now contact Kucoin regarding the status of their tokens and make plans for the insurance fund to cover their holdings.
Our advice to the Kucoin Management Team is that they will need to procure a plan in order to remedy the losses for their users. Given that it is a small amount in value of tokens for Kucoin, it should be a relatively quick issue to solve.
We understand that this will not be the outcome that all of our community wanted, but it is the only path forward in order for our project to be viable long-term and to achieve the decentralisation needed within the space.
Signed: The Add.xyx Team