According to Bloomberg, San Francisco-based cryptocurrency exchange Okcoin has suspended the trading of two Proof-of-Work (PoW) tokens dedicated to Miami and New York. The crypto exchange cited limited liquidity as the reason behind the action. Before this time, both coins were supported by the mayors of their respective regions.
“The concern with low liquidity is that malicious, third-party actors can manipulate prices, launder stolen funds, and perpetrate other frauds. While none of these risks have occurred, we wanted to get ahead of any possible misconduct. So we moved immediately to address and stop these events from occurring,” Okcoin explained. Hence, no buying or selling of the two coins on the exchange platform.
Both New York City’s Eric Adams and Miami’s Francis Suarez previously praised the tokens as digital assets which would be of immense benefit to their communities. The interest of the mayor of New York to introduce the New York-based cryptocurrency was aroused after Suarez launched the MiamiCoin.
Based on a statement by Okcoin, they claimed that 30% of the funds spent on mining the tokens will be returned to the community as a donation. It is noteworthy that none of these coins are in partnership with their respective cities. A New York City spokesperson for the Mayor’s Office confirmed this when approached to comment on the subject.
MiamiCoin And NYCCoin Have Limited Liquidity
The MiamiCoin (MIA) and the NYCCoin (NYC) were developed by CityCoin which runs on Stack, a protocol built on the Bitcoin (BTC) blockchain that allows smart contracts and the creation of coins.
Also, Okcoin is the only centralized cryptocurrency exchange where these two tokens are listed. Since January when the Okcoin security team noticed the liquidity problems, they have been making efforts to fix it. However, when it became obvious that it would take a longer time, they decided that it was best to halt their trading
Pending when Okcoin restores trading of the coin, which is planned for soonest, users who own MiamiCoin and NYCCoin can keep them in other wallets or just leave them on the San Francisco-based exchange. Decentralized platform ALEX still permits trading of the CityCoins, therefore, Okcoin users can leverage the platform.
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