ENREX Dumps MEXC Exchange, Advises Users To Move To Solana-based Wallets
Enrex has said it is suspending the trading of its token, $ENRX on MEXC exchange, citing inability to reach an agreement with the exchange over terms of use and advised holders of its token to move to Solana-based wallet within 30 days.
In an explanation which was released over the weekend, ENREX, a project created to help organisations that deal in cryptocurrency and other digital assets to adopt environment friendly operations, said it had become difficult to meet the demands by MEXC to attract new users to the MEXC $ENRX token trading platform.
In the wake of the alleged corrupt practices at Sam Bankman-Fried’s FTX and its trading arm, Alameda Research, alongside the misfortunes in the form of hacks suffered by some crypto firms, many users took their assets off-chain. Enrex said this disrupted MEXC’s business model. MEXC Global was founded in 2018 and says it gained 5 percent of global digital asset trading market share within a year in 2019.
… They (MEXC) require a large number of asset holders on their platform to function properly. To achieve this, the exchanges place more and more responsibilities on project owners (more than 60 projects got the notification of possible delisting last month). We were continually asked to increase the number of holders and attract new clients to the MEXC $ENRX token trading platform, Enrex said.
Important notice regarding @MEXC_Global!
All $ENRX trading on the exchange will be suspended on Monday!
Please move all of the assets to your @solana wallets and use this trading pair – https://t.co/xiUtmpHAag!
Read the full explanation and plan here: https://t.co/Ziq5g0Om6J
— Enrex – THE carbon offsetting solution (@enrex_crypto) December 10, 2022
The firm noted that it invested in campaigns in partnership with MEXC which attracted new holders to the exchange. It also said it executed token burns, marketing campaigns to maintain the activity of the ENRX and USDC trading pair on MEXC even though it did not get help from the exchange.
Enrex, however, said it was not “sustainable practice” to “buy new holders” even though it could be a successful way to boost activity.
We fully understand that just making gleam campaigns and free airdrops is not the way to go in the long run and doesn’t bring actual value or growth, Enrex said. “And being asked to do this repeatedly just to maintain the listing is the first disagreement we had with MEXC.”
Another disagreement occurred following MEXC’s request that the majority of $ENRX tokens should be moved to the exchange, Enrex said, noting that although it understands the principle behind MEXC’s request which is to ensure enough liquidity on-chain, its priority is to diversify.
Diversification of allocation of our tokens is one of our top priorities. In addition to this, after the collapse of FTX, we see the complete trust of all our assets placed on MEXC as a great danger to the token, the project and all our investors, the firm said.
MEXC Global has yet to respond to Enrex’s claims. MEXC did not immediately respond to Arweave News’ request for comment.
The situation seems to have prompted Enrex to favour decentralised exchanges. Even though decentralised exchanges are “difficult to handle”, it said that they do not rely on the assets of others to function and operate much more freely. It does not plan to dump centralised exchanges.
CEX listings are something that are necessary for all established projects and we will get back to them, when we will see better market conditions, Enrex said.
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