Singaporean crypto exchange OkCoin has suspended trading for NYCCoin and MiamiCoin, the respective cities’ foray into cryptocurrencies, citing low liquidity.
According to a March 9 statement, token holders can withdraw their funds or keep them in their wallets — but buying, selling, and trading isn’t possible. However, OkCoin says it hopes to reopen these features soon.
“The concern with low liquidity is that malicious, third-party actors can manipulate prices, launder stolen funds, and perpetrate other frauds,” Okcoin said. “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.”
- The city token ICOs were led by CityCoins, a project powered by tokenomics startup Stacks.
- Stacks has its own native crypto, STX.
- Token holders lock their STX to generate city coins, with 30% of those rewards going directly into the respective city’s funds.
OkCoin was the only centralized platform to list the tokens. Although the cities didn’t officially partner with the coins, both Mayor Francis Suarez of Miami and Mayor Eric Adams shamelessly promoted them last year.
Both coins have never traded for very much — but they have experienced peculiar pump and dumps. Indeed, Suarez has fervently supported the token and shared lofty ambitions, such as announcing MiamiCoin was “going mainstream faster than Bitcoin” in September 2022.
Locals were bombarded with signs, banners, billboards, and multiple press appearances by Suarez, all endorsing the cryptocurrency.