Crypto exchange suspends trading of digital coins in Miami, NYC
Cryptocurrency exchange OKcoin on Friday suspended trading of the two city-based digital currencies – MiamiCoin and NYCCoin – operated by the non-profit organization CityCoins.
OKcoin, which is the only centralized cryptocurrency exchange offering trading of the two municipal digital tokens, published a blog post ahead of the suspension, noting the “limited liquidity” of these coins on the platform. Low liquidity, which can be associated with low trading volume, can open tokens to fraud, according to OKcoin’s post.
“The concern with low liquidity is that malicious third-party actors can manipulate prices, launder stolen funds and commit other fraud,” the post said. “While none of these risks have occurred, we wanted to get ahead of any potential misconduct. So we moved immediately to address and stop these incidents from happening.”
The company wrote that the suspension is temporary and that trading will resume after it has addressed the “potential risks.” The two currencies can still be traded on a decentralized exchange.
Logan Lenz, a freelance contributor to CityCoins, assured StateScoop via text that the suspension on OKcoin is temporary.
“Things are more exciting than ever with CityCoins due to the recent upgrade and a good deal of development progress. OKCoin’s listing decision is temporary as they align with the protocol’s upgrade and pause for regulatory concerns regarding stakes,” wrote Lenz, CEO of Nucleus, which bills itself as a “psychedelic drug venture studio.”
CityCoin’s first digital token, MiamiCoin, was met with enthusiasm by a limited group of supporters at launch. (CityCoins founder Patrick Stanley in 2021 told StateScoop his plan to launch a digital currency in “every startup city” within two years.) MiamiCoin, which diverts 30% of its value to a private wallet reserved for discretionary use by city government, has lost a lot of its value and is currently trading at $0.00035.
The office of New York City Mayor Eric Adams, who spent part of his first mayoral salary on cryptocurrency, denied any connection to the CityCoins token. “The City of New York has no affiliation with NYCCoin,” a spokesperson from Adams’ office wrote in an email to StateScoop.
Miami has shown more support for CityCoins, taking control of its digital wallet and last year shelling out $5.25 million to fund a rental assistance program. Miami Mayor Francis Suarez, an outspoken supporter of cryptocurrencies, did not respond to requests for comment.
