Friday, October 4, 2019 – BitMax.io, an industry-leading digital asset trading platform, announced that there has been a significant misrepresentation of facts and allegations against BitMax.io and its team in the follow-up to its delisting decision of DeepCloud AI (DEEP). This announcement is intended to help users to gain full transparency in the accuracy and completeness of key facts around this matter.
First, DEEP project provided false information to both BitMax.io and investor communities regarding private / presale investor token allocation and vesting schedules. As a result, additional 49% were released over first day, and over 3,000,000 DEEP within the first 3 months.
Secondly, actual circulating supply remains uncertain to this day due to further discrepancy and lack of project communication.
As is known to all, initial circulation supply, token allocation and cost basis info are extremely critical to effective operation and trading quality of any third-party liquidity provider / market maker. Inaccurate and incomplete information from DEEP made it impossible for them to assess key support and resistance levels and effectively manage trading capital, especially in situations where there was decreasing organic buy orders.
Also, all the orders posted from DEEP’s contracted liquidity provider were passive “Maker orders” in order to provide liquidity with and minimize market impact for traders. This is a key requirement for any liquidity provider to operate on the platform.
Last but not least, BitMax.io utilized principal capital to conduct the $300,000 buy-back program of DEEP. This capital came directly from a segregated account owned by BitMax.io, NOT the account holding capital for liquidity provision.
As noted earlier, the BitMax.io team will continue enhancing its due diligence process and listing requirements for all future projects. The platform will also seek to bring on more institutional market makers / liquidity providers in continuous support of a liquid and orderly trading market. In the interest of BitMax.io users, the robust Post-Listing Administration process is being implemented by working with all listing projects for ongoing monitoring.