Dear Valued AscendEX Users,
There was abnormal price movement on AscendEX’s ASD/USDT and ASD/BTC trading pairs between the hours of 3:00 a.m. – 4:38 a.m. UTC on July 12th, 2022.
While the root cause of the abnormal price movement is still being investigated, preliminary results indicate that a number of users performed unusual transactions to manipulate the price of the ASD token. Specifically, these users exploited a reference price error to convert altcoins to ASD at heavily discounted prices on AscendEX. Upon converting their assets to ASD, these individuals sold large amounts of ASD on the exchange, which resulted in significant market impact and price depreciation.
In an effort to foster a fair and orderly marketplace, the AscendEX team has decided to reverse orders executed at or below the price of $0.014 from between the hours of 3:00 a.m. – 4:38 a.m. UTC on July 12th, 2022. We determined these prices to be unrepresentative of ASD fair value based on the volume weighted average price of ASD from other major centralized exchanges during this time frame.
To protect the interests of all AscendEX users, we have taken the following actions:
- ASD/USDT and ASD/BTC trading will resume on AscendEX at 2:00 p.m. UTC, July 13th, 2022. ASD deposits and withdrawals will resume shortly thereafter.
- All costs associated with the ASD conversion exploit have been covered by AscendEX.
- Any buy orders that occurred at a price greater than $0.014 between AscendEX customers and individuals that utilized the exploit will remain unimpacted.
- In an effort to foster a fair and orderly marketplace, AscendEX will utilize principal capital to execute a buyback of roughly 25,000,000 ASD on centralized exchanges.
Our number one priority is to protect our customers and preserve the integrity of the ASD ecosystem. If your account has been significantly impacted by this service disruption, please connect with our support team directly https://asdx.zendesk.com/hc/en-us/requests/new.
Best,
The AscendEX Team
