FrozenDrop is temporarily on hold
Read the complete explanation of why some exchange’s wallets turned out to be among those receiving the frozen KickTokens and why there is no reason to panic
On November 26th Kick Ecosystem initiated the distribution of tokens that we called FrozenDrop due to its unique emission mechanics of “frozen” tokens. In the course of this event, 888 888 frozen Kick Tokens were distributed among each of 167 375 wallet addresses in the Ethereum blockchain. The mechanism was completely innovative and paved the way to the prosperity of KickEX exchange.
Before kicking off the process using our algorithm for selecting ETH addresses, the team has worked on eliminating addresses of the exchanges so that only real users can be eligible for receiving our tokens on personal Ethereum wallets. Those wallets had to be Ethereum based, have the balance of other tokens of interest and be active, by means have in/out transactions. However, some wallet addresses of the exchange's users still turned out to be on the list for receiving frozen KickTokens. Unfortunately, some exchanges do not distinguish between the extra emission and the deposit on the user exchange wallet. That is the reason why some exchanges have mistaken the emission of frozen tokens that got into such wallets for ordinary deposits of their users’ accounts. As a result, the tokens were displayed as a liquid, and someone took advantage of the situation. Kick Team did not plan to encounter such difficulties, as the token buyers will not be able to withdraw these tokens from the exchange, because it is yet impossible — the tokens are frozen. The exchanges were not prepared either, as the team did not inform them hereby to avoid the misuse of insider data. With this, the temporary inconvenience was caused to exchanges that were not expecting for the FrozenDrop.
As a result, all trading on Exmo exchange is temporary suspended. Further, we decided to pause our FrozenDrop until other exchanges implement the method of distinguishing that this FrozenDrop is an extra emission and that these tokens cannot be traded, or be displayed on the users’ exchange balance.
We would like to note that there are only a few of such wallets, not a lot of Frozen tokens were sold, and the situation is now under our control. We emphasize that it is no exchanges’ fault of what had happened, the responsibility is entirely upon us.
Kick Team highlights that no one has ever done this kind of FrozenDrop before. It was an innovation of its kind, and it is normal for some things to not go completely accordingly to the plan. We are currently working with the exchanges closely, explaining the situation and helping them to learn how to distinguish between the emission of frozen tokens and transfers of not frozen ones. As soon as all key exchanges will support this method, we will resume our FrozenDrop again, which will not interfere with anyone and will not be sold.
What is FrozenDrop is all about?
A FrozenDrop is a marketing tool for bringing the attention of the most active traders and cryptocurrency users to KickEX exchange. KickEX is currently in its testing mode and will be launched in Q1 2020. Moreover, the FrozenDrop is an important part of the planned buyback strategy on KickEX exchange: the more traders there are on the exchange, the higher is the profit of the project, consequently more KickTokens we can buyback. The process will be transparent and automated and will be done via our innovative know-how method, which no one has seen before. FrozenDrop gives everyone an opportunity to benefit and, as a result, it will positively affect the price of KickToken in the future. Besides, the gradual “unlock” of KickTokens requires active trading on the exchange, which will create additional liquidity and reduce the spread, as well as fill in the order book, in essence, replacing (or at least significantly reducing) the need for market-making.
We consider FrozenDrop to be our unique invention, which provides a huge number of advantages for everyone, and an absolute gain for our community and the upcoming launch of KickEX exchange. Therefore, as mentioned above, we will try to resume the FrozenDrop in the near future.