[Blockmedia Dongnyuk Choi] Global cryptocurrency exchange Huobi has been embroiled in controversy over changing event requirements during staking. It is an issue related to the recently launched Com2us coin ‘CTX(C2X)’.
The controversy is that Huobi arbitrarily changed the rewards for staking returns without notice after the staking took place.
Staking participants claimed that Huobi announced that it would “provide profits based on deposited assets (in this case CTX)” before CTX event staking began, but after the deposit was made it was revised to “rewards will be calculated according to the opening price of CTX(C2X). The corresponding rewards will be sent to participants’ exchange accounts in USDT”
[Announcement announcement, before change(estimated) and current]
Blockmedia inquired Huobi about the change in the announcement, but only received an answer saying, “Check the current announcement.”
(Hello, please refer to the current announcement. The income distribution rules of this event will be distributed to users according to the income in the announcement.)
- If the terms and conditions are changed, the expected return on investors will decrease by 98%.
CTX price is $3.95 at 17:00 a.m(UST+9) on April 1st. This price is about 53 times higher than the listed price of $0.075. If the staking announcement is changed as above, investors’ expected returns decrease by nearly 98%.
The expected return of investors who held the largest stake (15,000 CTX) is changed from 1915 CTX (about $7,564) to $140.
- Changing the announcement of the stake event can be abuse for exchange’s earnings
Huobi held similar events for newly listed coins in the past.(See the table below) In the past events, interest was paid based on the staking token as originally announced.
In the case of CTX, the initial announcement followed this precedent. However, as the price of CTX coins has risen sharply, suspicions are growing that the announcement changed because of the token price.
[Huobi staking event’s cryptocurrency table, Blockmedia]
At the bottom of the event acnnouncement, Huobi said “Huobi Global reserves the right in its sole discretion to amend or change or cancel this announcement at any time and for any reasons without prior notice” leaving room for changes in the event.
It is difficult for investors to demand compensation even if losses actually occur due to changes of exchange’s notice.
[C2X Telegram, Blockedia]
Meanwhile, C2X is in a position that it is difficult to support investors as the staking event was conducted independently by Huobi. C2X guided them to contact the exchange directly if they have any inquiries about staking through its official telegram.
