Dear Dcoin Users,
According to leveraged ETF price mechanism and balance mechanism, merge operation will be executed irregularly. On 2020/08/06 5:00(UTC), Dcoin has merged 10 shares into 1 share for ETF pairs priced below 0.03USDT (10 shares in 1, meaning that the number of token held by users has become one-tenth of the original, the price of token has become ten times the original, and the total value of token held by users has not changed).
In particular, during the asset merge period, for the ETH3S trading pair, the price increased tenfold due to the adjustment of the token price only, but the amount of token held was not adjusted, resulting in the following three situations:
- Users earn 10 times the profit and sell ETF products to participate in other trading.
- Users lose 10 times as much
- After correction, the user is not profitable not loss.
All losses in this accident shall be borne by Dcoin, and welfare compensation will be provided to all ETF users in addition.
The treatment is as follows:
- In a short term, all users who have profited from this technical problem has bought other tokens and have already made profits, and Dcoin will not pursue it.
- All users in the short term due to the accident shall be fully borne and compensated by Dcoin.
- Users have not do the operation and the assets are the same as before the accident. Each user can contact the customer service to register with UID to receive 300U YPool hashrate coupon (30U/T 10). The original price of 130U/T YPool hashrate is 30U/T, and Dcoin subsidizes 30U/T 10 in total.
- For the original price 130U/T YPool hashrate, Dcoin subsidizes 30U a total of 10 pieces.
The ETH3S related issues have now been fully resolved.
The following is a detailed description of merge calculation:
ETF merge operation: the token held by the user becomes 1/10 of the original, the price becomes 10 times the original.
Here's an example:
Before merge: Assume that user A holds 100 ETH3S at price of 0.024USDT.Position value 2.4USDT;
After merge: User A holds 10 ETH3S at price 0.24USDT. Total value is 2.4USDT.
However, if the price has been adjusted to 0.24USDT, but the number of token has not changed to 1/10, the following four scenarios may occur:
- Scenario 1: the user sells all of them and gets 24USDT. Net 900%.
- Situation 2: the user sells a portion, sells 50 pieces, and gets 12USDT, with another 50 tokens rest. After the merge is processed, the number of tokens is 5 and the rest value becomes 1.2USDT.
Users seld 50 pieces, and make a net profit of 900%.
- Situation 3: If the user does not sell, the number of assets is adjusted to 1/10, the asset value remains unchanged.
- Scenario 4: If the user buys at the adjusted price, the net purchase of this asset will not change (assumed by Dcoin).
Risk warning: cryptocurrency investment is subject to high market risk. Please make your investments cautiously.
August 6, 2020
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