Bitrue’s Decision Draws Mixed Reactions from the XRP Community
The Singapore-based cryptocurrency exchange Bitrue recently made an unexpected announcement that sent ripples throughout the XRP community. In a surprising turn of events, Bitrue declared the conclusion of Xahau’s XAH Mint Event and a major change in its approach.
The event was launched to support Xahau, the first protocol sidechain of the XRP Ledger, which saw the light of day just a week ago. During this unique Mint channel period initiated by Bitrue, users were encouraged to burn their XRP holdings on the exchange in exchange for an equivalent amount of XAH on the Xahau network.
We sincerely appreciate your participation in this event. If you have any questions, please contact our support… pic.twitter.com/hNrIxqHT5a
— Bitrue (@BitrueOfficial) November 6, 2023
Bitrue explained that users could participate in the XAH minting process by locking their XRP tokens. After the event’s conclusion, the XRP tokens locked by users were meant to be extracted for burning on the mainnet. In return, the equivalent amount of XAH would be distributed to the participants. This, however, sparked questions and concerns among the XRP community members, particularly regarding the fate of the XRP tokens locked during the event.
Bitrue’s XRP Refund: A Step Forward Or A Step Back?
Addressing these concerns, Bitrue clarified that the minting process, once initiated, was irreversible. When users converted their XRP into XAH, the XRP tokens were permanently burned, establishing a 1:1 conversion rate. An unforeseen challenge emerged as the market prices of the two tokens did not align as expected, prompting criticism from some XRP enthusiasts. Bill Morgan, a legal attorney and prominent XRP advocate, highlighted the disparities in token values in a tweet dated November 2.
In a surprising move, Bitrue responded by altering its initial course of action. The exchange decided to refund all the locked XRP tokens to their respective users accounts. This unexpected reversal provided a glimmer of hope and relief to those who had been uncertain about the fate of their assets during the event.
As of now, there is no available information on the status of the minted XAH tokens. The Xahau network’s native cryptocurrency, XAH, started trading on Bitrue shortly after its listing.
The decision by Bitrue has sparked varied reactions from the XRP community, with some commending the exchange’s responsiveness to user concerns and others pondering the implications of this change for future events. It remains to be seen how this decision will impact the ongoing developments within the XRP ecosystem and its relationship with the burgeoning Xahau network.