Beset by technical problems in the past days, the Livecoin exchange has shed light on the issues around the Dignity (DIG) token. The platform has been accused of being a scam on account of holding back Bitcoin withdrawals. The DIG problem, however, was related to technical issues and was not intentional.
Livecoin saw an unexpected server restart, which caused withdrawals of Dignity (DIG) and Loyalty (GIFT) tokens being sent twice to users’ wallets. The two tokens are managed by the Arbitrade exchange umbrella, Livecoin pointed out.
The nature of the issue was clarified in a recent official message from Arbitrade. The Livecoin team said:
“There are no restrictions on deposit-withdrawal operations, and we are not planning to impose any. All the losses incurred will be compensated at the expense of the Exchange. Actually, this problem doesn't concern 97% of the coins at the Exchange and all the fiat money, it was just about a few Ethereum contracts.”
The DIG and GIFT tokens will be instrumental to the Arbitrade exchange. However, this up-and-coming marketplace is still awaiting the completion of licensing and will not be launched any time soon.
In the meantime, Livecoin continues its usual operations, announcing a ThaneCoin (TPI) trading competition starting this Monday:
The DIG token, however, has been frozen after crashing by 28% to $0.034 and now has no price discovery mechanism. The GIFT tokens, given as an airdrop to DIG owners, have yet to discover their price. Livecoin handles around $17 million in 24 hours, as per Monday data from Coinmarketcap.
So far, the Livecoin server restart has not been linked to a hack or any malicious endeavor. In this case, the loss is solely for the exchange and users who panic-sold. Some users saw their coins doubled, and it is unknown if there would be an attempt to return the assets.
Currently, one DIG address holds more than 53% of all tokens, according to Etherscan. The address received more than 89 million tokens around September 27, taking the total holding to 1.6 billion DIG.