Chinese crypto exchange FCoin announced on Monday that it is shutting down, citing “internal data errors & complicated decisions.” Launched in May 2018, FCoin has always been in the news, controversially most of the time. The blog post penned by founder and chief Zhang Jian; the company said that the biggest problems at the moment facing FCoin are that the system cannot be restored and the capital reserves cannot be paid to the users. Jian further added,
“It’s time to reveal the truth. The truth, even cruel, is better than beautiful lies. In particular, public lies will sooner or later breakthrough under the watchful eyes of everyone. And more importantly, I can’t watch innocent people being implicated and good people being blinded.”
The news spread like fire and the entire crypto fraternity began to react. First in line was TRON founder and CEO Justin Sun, who tweeted that the news had saddened him, as Jian is his close friend, and his hardships are relatable. He also announced a campaign in partnership with crypto exchange Poloniex, to distribute 1000 BTT each to affected FCoin users.
Despite the small amount, this is our token of gesture to recover the loss for users of the #crypto world!
— Justin Sun (@justinsuntron) February 18, 2020
Giving the details of the campaign, Poloniex posted a blog on its website, in which it stated that FCoin users who incur losses until June 2020 will be eligible to receive the 1000 BitTorrent tokens. “To receive your BTT, please send proof of your FCoin account to [email protected] along with your Poloniex account email address. We understand how disheartening this incident must be for everyone involved,” it added.
Likewise, another major crypto exchange, KuCoin launched the “FCoin Market Maker Support Program” of up to $50 million.
#KuCoin Launches FCoin Market Maker Support Program of Up To 50 Million USD
— KUCOIN (@kucoincom) February 18, 2020
The FCoin closure raises several questions, and most are directed towards the integrity of the company, and the possibility of this being nothing more than an exit scam. Jian said that the problem behind such a drastic decision “is a little too complicated to be explained in a single sentence, the time span is also large, and the two-story development lines are advancing and affecting each other at the same time, leading to the final outcome.”
You can read the detailed explanation given by Jian on this Reddit post.