Cryptocurrency exchange OKX has clarified that it does not support the buying and selling of "shell tokens" listed on the exchange. This announcement came after a staff member shared WeChat conversations where an individual allegedly approached OKX staff to purchase "shell tokens."
“[Tokens] Listed on OK, but project can operate no longer. Someone wishes to take over such projects.”
Like shell companies, shell tokens involve coins with no significant underlying business activities, assets or market value. In the case of a shell token, a project may have gained initial traction to have its token satisfy listing requirements on an exchange, but later, its business activities and operations stall. When a project ceases to operate, its underlying token requires manual removal from the listing.
OKX founder Mingxing Xu also commented on the issue, stating that all projects that stop developing will be delisted according to the exchange's listing agreement. Shell tokens involve coins with no significant underlying business activities, assets, or market value, and purchasing them can potentially give rise to market manipulation.
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