Bithumb Designates Velo Protocol’s VELO as Investment Cautionary Cryptocurrency

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Bithumb designates Velo Protocol’s VELO as a warning cryptocurrency due to transparency concerns, suspending deposits from 2/22. Bithumb will reassess its status in March.

Bithumb, South Korea’s largest cryptocurrency exchange, has designated Velo Protocol’s VELO token as an investment warning cryptocurrency effective February 22, 2023. The exchange cited a lack of transparency in Velo’s business activities and failure to comply with previous requests for improvement as reasons for the determination.

VELO deposits will be suspended from 16:00 KST on February 22nd. Bithumb will decide whether to extend the warning designation in early March. During the determination period, Velo Protocol will have the opportunity to resolve the cited issues and request that the warning status be removed.

Bithumb introduced its investment warning policy to protect investors by providing warnings about potentially dangerous cryptocurrencies offered on its platform. Cryptocurrencies may be designated as cautionary for reasons including lack of transparency, rumors of misconduct, technical vulnerabilities, and non-compliance with regulatory requirements.

According to Bithumb’s notice, the exchange was unable to verify details of Velo’s business activities and development progress. In addition, Velo allegedly failed to comply with all provisions of a previous enhancement request. Bithumb now considers additional investor protection necessary.

The Velo Protocol, developed by Velo Labs, issues VELO tokens on the Stellar blockchain. The Velo Protocol ecosystem aims to facilitate fast, affordable and secure transactions. The protocol connects traditional financial partners and cryptocurrency providers to improve liquidity and interoperability.

Bithumb has stated its commitment to sustainable and systematic oversight of listed cryptocurrencies. The exchange aims to provide a stable trading environment through open communication and coordination with external experts and project foundations.

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