The exchange namely Blackmoon Crypto known to be the first exchange to sell Telegram’s blockchain tokens is reportedly about to halt. Prior to the U.S. Securities and Exchange Commission filed a suit against Telegram, the exchange mediated its relationship with investors in the upcoming blockchain of Telegram last fall.
The claim from the CEO, Oleg Seydak, of the exchange appeared that high regulatory compliance costs are leading the exchange to shut down. Operating a crypto exchange in compliance with all modern regulation is not competitive to unregulated alternatives. All withdrawl limits have been lifted and fees have been canceled with the announcement of closure. But holders of Blackmoon’s own BMC tokens will be able to convert their coins into USDC stablecoins.
They are reportedly to release the converter by the 24th of April and withdrawls will be processed automatically for subsequent some months.
The Dream was Mammoth
Blackmoon wanted to grab the opportunity of Telegram token offering being the first official marketplace for grams. Before that the exchange was initially a marketplace for ethereum tokens backed by market shares in mainstream companies like Lyft and it boosted a modest 3,800 users last summer.
The aforementioned exchange was also working with TON Labs, which is a core infrastructure and ecosystem for Telegram Open Network. The exchange partnered with Gram Vault, a Swiss custodian founded for holding grams, and by pulling tokens directly from Gram Vault, the exchange hoped to boost its gram liquidity. However, the issuance of grams has been postponed.
Decision of freezing
It is expected that all the Blackmoon leadership and developers probably have decided to freeze all activities for now. The current situation with TON normally hurt investors indeed. What investors think is their core problem is the deficit of liquidity. Blackmoon has developed many good tools for traders and later Binance did the same thing. According to investors it was a purely venture stuff. Some investors have already sold their tokens back to Blackmoon.