XinFin: Update on XDCE Token and AlphaEx

XinFin community update on the hack of XDCe tokens from a hot-swap wallet on AlphaEx.

Singapore, Singapore, December 28, 2020 --( The last 2 weeks, since the hack of XDCe tokens from a hot-swap wallet on AlphaEx, has been a challenging time for the entire community. During this time XinFin has worked as a team and with community members to resolve this issue as best as it can be. XinFin understands people’s frustration during this time and thankful for their patience.

There are unique challenges dealing with the hack of token that is swappable with another like XDCe and XDC. Careful consideration is needed to see this through for a successful long-term solution for the community and XinFin, which has been the goal all along.

While XDCe has played an important role for XinFin since Pre-ICO, the ultimate objective has always been to focus efforts on XDC and the utility it serves as a Mainnet token for the XDC Network. In doing so, XinFin has already been working on a new and more secure way to interoperate with Ethereum to utilize the benefits of Defi with XDC. The recent hack has accelerated this process which has detailed below, along with updates on the progress to resolve the swaps as quickly as possible and support the community with more secure trading solutions moving forward.

AlphaEx Current Update and Next Steps:

AlphaEx swaps and withdrawals are stabilized from 18th Dec. 2020.
1. AlphaEx currently plays an important role in XDCe to XDC swap. There have been 400+ swaps processed in 2 days since restarting AlphaEx. The priority was accounts with swap limit caps and those that had XDCe before the hack.
2. XinFin has requested that the AlphaEx team process genuine swaps for pending users as soon as possible.
3. Other Assets like BTC, ETH, XRP withdrawals are also available for KYC’d users to have funds on the exchange. These users are free to withdraw 100% of their assets in their wallets without any limit.

AlphaEx Will Discontinue Retail Trading and Continue with Swaps, OTC desk, and XDC Staking Programs
1. Prior to the hack, AlphaEx played a core role in integration, liquidity management, and OTC trading for XDC/XDCe. With exchanges like Bitrue and Bitfinex in place and ongoing listing negotiations with tier 1 exchanges, retail exchange features for AlphaEx are no longer a core community need and it’s imperative that provides the safest trading options for the community as possible moving forward. XinFin has proposed the following to AlphaEx:
2. Identify existing exchanges that can support AlphaEx moving forward with retail trades. As of this time, Bitfinex has agreed to support AlphaEx for all retail traders in the jurisdictions they serve. AlphaEx is also in talks with other exchanges that currently list XDC to support US-based community members.
3. AlphaEx will discontinue the trading of retail users on their exchange.
4. Only process XDCe/XDC swaps until the proposed contract termination date of XDCe (details are listed below.)
5. Continue with XDC Staking for the Community Staking Program.
6. Enable regulatory compliant OTC trades for bulk deals via integrations with other exchanges like Bitfinex and other US-supported exchanges and upcoming tier 1 exchanges.

The Next Steps for XDCe
1. XinFin will be removing the 1:1 peg for XDC: XDCe for trades made after December 6, 2020, 5:30 GMT.
2. Remove XDCe trading data from Coinmarketcap and other listing sites for exchanges that have been trading XDCe such as Bancor, UNISWAP, Idex, etc.
3. Determine and set a date for contract termination of XDCe (currently proposed 30th June 2021 or 31st March 2021). Until this time, swaps for users will be provided by AlphaEx.

As XinFin continues to move forward in executing this plan, expect to see improved response times from AlphaEx for swaps and support tickets. AlphaEx has received an extraordinarily high volume of requests during the first four days of reopening and have been working through them as quickly as possible. XinFin will continue to support them in these efforts moving forward. As it has already been stated no user funds have been lost or compromised as a result of this hack.
XinFin Fintech Pte. Ltd.
Nadar Suresh