Crypto Exchange OKCoin Suspends Trading of Miami and NYC CityCoins
The exchange said “unexpectedly low liquidity” poses risks to users, which the platform tries to avoid.
Mar 21, 2023 at 8:15 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/B5D4CVX4DRHQHMNRHKBKNGHUOM)
(Shutterstock)
Crypto exchange OKCoin has suspended the trading of two citycoins, MiamiCoin and NYCCoin, as of March 16, citing limited liquidity as the reason for the decision.
“Limited liquidity for these coins on our platform has created the possibility of price manipulation and fraudulent activity,” OKCoin wrote in a blog post. “While none of these risks have occurred, we wanted to get ahead of any possible misconduct.”
The exchange will resume the trading of those coins once the “unexpected” low liquidity is solved. Until then, holders can continue to keep their coins on the exchange or move them to a decentralized platform.
OKCoin, a globally licensed exchange headquartered in San Francisco, was the only centralized exchange that offered citycoins, according to the blog post.
Both MiamiCoin and NYCCoin are developed by CityCoins, which enables citizens a way to generate crypto-based revenue for themselves and the cities where they live.
Miami Mayor Francis Suarez was a particularly strong proponent of MiamiCoin in its early days, touting the possibility to generate a “bitcoin yield” for its citizens from its staking.
OKCoin didn’t immediately respond to a request for comment from CoinDesk.
Bloomberg previously reported on the news.
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
:format(webp)/www.coindesk.com/resizer/Bq34fFDLQLAxJq7jRzq--axWcvs=/arc-photo-coindesk/arc2-prod/public/BPHZ3N4FINGKHP4PJNCM265SOM.jpg)
Helene is a U.S. markets reporter at CoinDesk, covering the US economy, the Fed, and bitcoin. She is a recent graduate of New York University's business and economic reporting program.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.