DragonEx resumes withdrawals with a temporary internal token mechanism

DragonEx is introducing a new withdrawal method in an effort to save its business.

The DragonEx crypt coin exchange is introducing a temporary measure to resume withdrawals after some problems last month.

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According to an official announcement on 8 November, DragonEx is introducing a temporary solution to allow withdrawals of crypto currencies. The exchange will require its users to purchase so-called „DragonEx Withdraw Quota“ tokens. A DWQ will allow the withdrawal of assets worth 1 Tether (USDT).

DragonEx executives said that customers can acquire DWQs through transactions, mortgage loans or deposits. „When users make a withdrawal, the same value of DWQ will be consumed,“ the announcement said.

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According to the exchange, DWQ-based withdrawals are a temporary solution in response to ongoing problems at DragonEx.

On October 21, DragonEx said it suspended deposits and withdrawals of all digital currencies due to problems generated by the suspension of ongoing OKEx withdrawals. The exchange has been working on a restructuring plan to resume such services on the platform. DragonEx representatives said that the platform will close if they do not successfully reorganise by November 2. In yesterday’s announcement, the exchange stated:

„DragonEx has been actively seeking external investment recently, however the process takes time and there is also uncertainty. To shorten the waiting time, DragonEx plans to restore token retirement gradually through a temporary solution.
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If the platform becomes profitable again, withdrawals will return to normal, eliminating the requirement and the DWQ mechanism and destroying all DWQ tokens.

Cointelegraph contacted DragonEx for further details, but has not received a response at the time of publication.