We are in the crypto world because we believe this industry is the future. We choose Binance as a place to trade because we believe they will do what is best for their customers.
However, several events in the crypto world have caused huge losses caused by irresponsible developer behavior.
We believe the exchange is trying to get better, that's why we are all still here. However, it seems that this is not enough. There are still actions by developers that harm consumers which are not resolved fairly.
Remember the LUNA case. Incompetent and evil developers have harmed so many people. Not only for LUNA holders but also for everyone in the industry because the LUNA case caused a massive price collapse.
Now there is an event (I won't call it a case) of merging 3 AI tokens, namely FET, OCEAN, and AGIX.
On June 14, 2024, #Binance made an announcement that they will support the merger process of Fetch.ai (FET), Ocean Protocol (OCEAN) and SingularityNET (AGIX).
You can read more detail at the following link: FET, OCEAN, AGIX merge
In summary, the contents are:
OCEAN and AGIX tokens will assume the ticker of FET at Binance.
All OCEAN and AGIX tokens will be swapped to FET at a ratio of:
1 OCEAN = 0.433226 FET;
1 AGIX = 0.433350 FET.
For users who hold the delisted tokens on spot, it seems certain that they will be converted.
However, for the future market, considering that users do not hold assets directly, the question arises whether the losses incurred as a result of the developer's actions will be replaced or not?
Should, if we want to be fair, for future positions opened before June 14th all losses incurred should be reimbursed. Who is charged with compensating for the loss? In my opinion, it is the developer's side, whether with tokens or other mechanisms.
This situation is getting worse because the merger process occurs at a time when the market is experiencing a correction.
$BTC experienced a correction of around 12% from June 14 to June 25 (when automatic settlement was carried out).
Although not always, a drop in BTC will be followed by a drop in prices for most altcoins.
So, this merge action was carried out at the wrong time. When most people were panicking because of the uncertain market situation, an announcement suddenly appeared that made the situation worse.
Therefore, this incident proves that users are always at the most vulnerable.
Just imagine, currently AI is one of the most popular narratives on the market so AI-related tokens have a large trading volume. Most people are bullish on AI related coins, including FET, AGIX and OCEAN. Not only holding it in the spot but also opening a position in the future market. Then suddenly they were asked to force it to close when they were getting a negative PNL.
So, it should be a lesson for exchanges (all exchanges) to have rules regarding developer actions regarding their tokens listed on exchanges.
Meanwhile, for incidents that have occurred, the exchange should force developers to compensate all losses experienced by users in all markets.
If not, can we guess what will happen if $OP , $ARB , and Matic decide to merge to form the SUPERL2 token?