DragonEx resumes withdrawals with a temporary internal token mechanism

DragonEx is introducing a new withdrawal method in an effort to save its business.

Cryptocurrency exchange DragonEx is introducing a stopgap measure to reintroduce withdrawals after some problems last month. 

According to an official announcement on Nov. 8, DragonEx is introducing a temporary solution to allow crypto withdrawals. The exchange will require its users to acquire so-called “DragonEx Withdraw Quota” tokens. One DWQ will allow the withdrawal of assets worth 1 Tether (USDT). 

DragonEx executives said that customers can acquire DWQ through trading, mortgage loan, or a deposit. “When users make a withdrawal, the same value of DWQ will be consumed,” the announcement reads.

According to the exchange, DWQ-based withdrawals are a temporary solution in response to ongoing issues at DragonEx.

On Oct. 21, DragonEx said that it suspended deposits and withdrawals of all digital currencies due to issues fueled by OKEx’s ongoing withdrawal freeze. The exchange has been working on a restructuring plan in order to resume those services on the platform. DragonEx representatives said that the platform will be shut down if they didn’t manage to successfully reorganize by Nov. 2. In yesterday’s announcement the exchange stated:

“DragonEx has been actively seeking for external investment recently, however, the process takes time and uncertainty exists as well. In order to shorten the waiting time, DragonEx plans to restore token withdrawal gradually through a temporary solution.”

Should the platform become profitable again, it will return regular withdrawals, eliminate the DWQ requirement and mechanism, and destroy all DWQ tokens. 

Cointelegraph reached out to DragonEx for more details, but has not received a response as of publishing time.