Bithumb has designated Velo Protocol’s VELO as a warning cryptocurrency for transparency issues and will suspend deposits from February 22nd. Bithumb plans to re-evaluate its status in March.
Bithumb, Korea’s largest cryptocurrency exchange, designated Velo Protocol’s VELO token as a cryptocurrency for investment caution starting February 22, 2023. The exchange cited Velo’s lack of transparency about its business activities and failure to comply with previous requests for improvement as reasons for the designation.
VELO deposits will be suspended from 4pm on February 22nd. Bithumb plans to decide whether to extend the cautionary designation in early March. During the specified period, the Velo Protocol will have the opportunity to address the noted issues and request removal of the caution status.
Bithumb has introduced an investment caution designation policy to protect investors by providing warnings about potentially concerning cryptocurrencies offered on the platform. Cryptocurrencies may be flagged for reasons such as lack of transparency, rumors of misconduct, technical vulnerabilities, regulatory violations, etc.
According to Bithumb’s notice, the exchange was unable to confirm details about Velo’s business activities and development progress. Additionally, Velo reportedly did not comply with all provisions of previous improvement requests. Bithumb believes that additional investor protection is now needed.
The Velo protocol, developed by Velo Labs, issues VELO tokens on the Stellar blockchain. The Velo Protocol ecosystem aims to facilitate fast, cheap and secure transactions. The protocol connects traditional financial partners and cryptocurrency providers to improve liquidity and interoperability.
Bithumb expressed its commitment to sustainable and systematic supervision of listed cryptocurrencies. The exchange aims to provide a healthy trading environment through open communication and coordination with external experts and project foundations.
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