Dear VeRocket users,

What Happened Recently

During this half year, we have witnessed three incidents that broke the daily trading activity of ordinary users.

1) Bankrupcy of Prime Trust (VeUSD)

VeUSD was the officially recognized stablecoin on VeChain. However, Stably_Official announced that its fiat custodian, Prime Trust, had filed for bankruptcy on June 22, 2023 (source). This event significantly impacted the 1:1 pegging of VeUSD to the USD dollar, and as of October 27, 2023, this peg has not yet been restored (source).

Per Stably_Official statement,

• “Prime Trust filed for Chapter 11 bankruptcy, in which it currently remains.”
• “Existing stablecoin holders whose funds (~$2.2 million) still remain with Prime Trust…”

2) EXO Token Theft (twice)

On November 5, 2023, ExoWorldsNFT announced in a tweet that their EXO token had been hacked. Further investigation revealed that a previous developer had compromised the token’s smart contract through a backdoor. After several sleepless nights of battling the issue, VeRocket and ExoWorldsNFT agreed to delist the old token and introduce a new one.

However, on February 25, 2024, ExoWorldsNFT tweeted that the new EXO token was malfunctioning, leading to losses in the liquidity pool. While we appreciate the project owner’s prompt notification, we also mourn the loss of assets experienced by ordinary users. This incident remains under investigation, prompting VeRocket to consider measures to enhance user protection during this period.

Thoughts

As the cryptocurrency market gears up for a potential bull run in 2024, we have seen a significant increase of new tokens on VeChain (23 new tokens), surpassing the total from the previous five years combined on Vechain. In response to this growth and to ensure the security of our users’ assets, we are announcing a new token policy that will apply to project owners and tokens to better protect our valued users.

Listing

In order to keep a balance between preventing vaporware or scams and ensuring availability, we adopt a proactive approach.

The token listing requirement is straightforward:

New token that debuts on official VeChain Token Registry is considered a valid token and can be listed on VeRocket.

As part of our commitment to decentralization and autonomy, we will immediately create a VET/NEW-TOKEN pair on VeRocket once the new token is added to the official registry.

Certain older tokens still enjoy a loyal user base and are not traded on centralized exchanges. If these tokens meet the criteria and are listed on the official registry, they will also be available on VeRocket.

For further information on the official token registry, refer to: VeChain Github

Warning & Delisting

The DEX was designed for improved capital efficiency, operating as a 24/7 on-chain exchange. As a decentralized platform, we cannot truly halt trading or liquidation of tokens on the blockchain. However, we can control the UI to delist (hide) tokens.

Several key factors to consider:

• Security breaches;
• Absence of protocol development;
• Faulty network or unreliable smart contracts;
• Proof of fraudulent or dangerous activity;

A project may be delisted voluntarily upon the request from project owner. When a project fails to satisfy the listing standards where its assets are traded, it is delisted involuntarily.

To maximize availability for existing users, tokens will be displayed in deprecated mode before being completely removed from the exchange, with a warning message from VeRocket admins.

Users shall exercise caution when trading tokens with warnings and prepare to withdraw their funds as soon as possible.