Cryptocurrency exchange platform OKCoin suspended trading of its MiamiCoin and NYCCoin on Thursday last week, citing liquidity issues first noted in January.
In a blog post, it wrote: “Limited liquidity for these coins on our platform has created the possibility of price manipulation and fraudulent activity. While none of these risks have occurred, we wanted to get ahead of any possible misconduct.”
The company added: “The concern with low liquidity is that malicious, third party actors can manipulate prices, launder stolen funds, and perpetrate other frauds. While none of these risks have occurred, we wanted to get ahead of any possible misconduct. So we moved immediately to address and stop these events from occurring.”
OKCoin plans to resume trading the coins after resolving their “unexpected” low liquidity issues. Those holding the digital assets can keep them on OKCoin or transfer them to decentralised wallets.
The San Francisco-based cryptocurrency exchange is the only citycoin provider, it added. The assets allow citizens to build cryptocurrency wealth via their resident cities.
