[Exclusive] Com2uS Coin, 'C2X to XPLA' Conversion Occurred Immediately After Liquidity Crisis on FTX

C2X to XPLA Migration Occurs Immediately After FTX Liquidity Crisis
Investors Say "Migration Proceeded Despite FTX Bankruptcy Concerns"

[Asia Economy Reporter Kang Nahum] A significant amount of Com2uS Holdings' cryptocurrency XPLA is tied up in the bankrupt global cryptocurrency exchange FTX, causing ongoing losses for investors. It has been confirmed that the exchange migration from C2X to XPLA was carried out immediately after the FTX liquidity crisis emerged. During the migration process, deposits and withdrawals are temporarily suspended, and investors are criticizing that if the migration had been done earlier, they could have avoided the bankruptcy losses.

According to Com2uS Holdings and XPLA investors on the 14th, Com2uS Holdings conducted the exchange migration from C2X, which was rebranded as XPLA, on the 8th of last month. This process allows trading the existing C2X as XPLA, following Com2uS Holdings' establishment of its own mainnet after the 'Terra-Luna incident.'

The problem lies in the timing of the migration. The migration on the 8th of last month took place amid the ongoing 'FTX bank run crisis.' Prior to this, on the 2nd of last month, reports first surfaced in the U.S. that Alameda Research, an FTX affiliate, had a fragile financial structure, and subsequently, rumors of FTX bankruptcy spread across various social networking services (SNS). On the 7th, the day before the XPLA migration, articles about FTX's liquidity crisis began to flood the domestic media as well.

During the migration period, cryptocurrency deposits and withdrawals are restricted. XPLA investors could only watch as other coin holders exited FTX. Currently, 32 million XPLA tokens are locked in FTX, accounting for 35% of the 91 million circulating tokens disclosed on CoinMarketCap.

One XPLA investor stated, "Despite being aware of the problems at FTX, Com2uS Holdings pushed forward with the migration, exacerbating investors' losses," adding, "Hundreds of FTX-related articles were published domestically and internationally on that day, but most investors cannot understand why the migration was forced."

In fact, transaction records from XPLA's standard wallet 'XPLA Vault' show that around 11 p.m. on November 8th, 32 million XPLA tokens converted from C2X were transferred to FTX. Investors argue that if Com2uS Holdings had detected the crisis and either halted or expedited the C2X (XPLA) migration, they could have cashed out or moved the tokens to personal wallets to reduce losses.

In response, Com2uS Holdings stated that the migration was a pre-announced schedule and could not be avoided. They expressed regret, saying that if the migration had been conducted at the trading time on October 21st at FTX, investors would not have faced deposit and withdrawal restrictions.

A company representative said, "We continuously verified the bankruptcy rumors, and since the FTX representative assured us there were no issues, we had no choice but to trust them," adding, "C2X holders had been waiting a long time for the migration, and we could not cancel the long-prepared process based solely on circulating rumors." They also stated, "Even if the token swap to XPLA had not occurred, the authority to restrict deposits and withdrawals lies with FTX, not the XPLA Foundation, so the claim that losses could have been avoided is inappropriate."

Regarding the background of the migration on November 8th, the representative explained, "The migration was initially scheduled for October 21st, but FTX kept changing the schedule, and the migration was finally carried out on November 8th."