• MEXC exchange has been accused of “dumping paid tokens.”
• The controversy surrounding the exchange dates back to 2020 and the situation remains uncertain.
• Despite this, its token MX has soared 260% year-to-date.
Accusations Against MEXC Exchange
A crypto analytics account @WhaleChart on Twitter urged viewers to stay away from MEXC exchange and its token MX, citing one project allegedly getting “annihilated” by the exchange dumping paid tokens on their customers. Another account @trendoshi referred to MEXC as a “scam exchange,” mentioning an incident in 2020 involving Dos Network and its same-name token.
MEXC Exchange’s History
MEXC was formerly known as MXC before a 2021 rebranding. During DEFI summer of 2020, it was discovered that MEXX had 17 million DOS on their order books but only half of that in their wallets. This resulted in them selling more tokens than they had, thus driving down the price. MEXC then froze withdrawals for SORA token citing liquidity issues but continued launching other products as SORA was going parabolic. The exchange then delisted SORA without allowing any withdrawals and rebranded to MEXC in order to clean their brand image for newer investors.
Current Status of the Exchange
Currently, MEXC is ranked 17th by security rating and 15th by daily trading volume according to CoinMarketCap with $587 million in daily trading volume at present. Several users have responded saying they did not have any negative experiences with the platform while no evidence supporting allegations were provided by either @WhaleChart or @trendoshi accounts.
MX Token Performance
The platform’s MX token has seen excellent performance despite uncertainty around the platform itself, soaring 260% year-to-date and peaking at $3.20 on May 8 just 15% short of its all-time high this year despite suffering a 12% correction over three days since then with current value standing at $2.88 in New York session today (May 10).
Despite accusations against MEXC, it still remains one of top 20 exchanges and its MX token has performed exceptionally well so far this year having tripled its value since January 1st 2021 signalling investor confidence might be higher than ever before although situation remains uncertain until further proof surfaces up or downplaying these allegations is made public by either party involved (accusers/accused).