Latest report from Coinbase has it that the exchange has managed to botch a major merger involving AI tokens, leaving thousands of investors confused. The development has also raised serious concerns about the exchange’s handling of complex transactions.
The problems started earlier this week when Coinbase announced that it was going to combine two highly anticipated AI tokens, NeuroCoin (NRC) and SynthAI (SYN), into a single token known as Synergetic AI (SYNAI).
The announcement was initially welcomed with cautious optimism by the cryptocurrency community, which was eager to see how the merger would affect market dynamics and technological improvements in artificial intelligence.
Shortly after the merger was put into effect, reports surfaced that users’ balances were showing incorrect amounts, transactions had failed to process, and in some cases, tokens showed up to have vanished entirely from accounts.
Coinbase Users Complain, Exchange Blames Faulty Blockchain Technology
In a bid to explain the situation, Coinbase first explained the disparities by blaming blockchain confirmation delays and technological issues. The exchange also said that it’s transition to the new Accumulative Swing Index (ASI) will be a gradual process. As additional users began to report similar problems, there was growing conjecture that the issue was more systemic, stemming from a bad implementation of the merging protocol.
Customers had to wait hours for assistance because Coinbase’s customer service channels were overflowing with questions and grievances. Some customers complained that they were given broad answers that did not address the specific issues they had with tokens going missing or balances being off.
Suspicions of poor management and carelessness were only heightened by Coinbase’s lack of transparency and clarity. Experts from the industry commented on the dispute, raising concerns about how it would affect investor trust and Coinbase’s reputation.
Coinbase Announces End of Synergetic AI Trade Till Further Notice
Legal professionals predict that Coinbase may be subject to fines or other penalties for its inadequate protection of user assets, contingent upon the results of the investigation. Coinbase declared that it would stop trading Synergetic AI (SYNAI) until all problems were satisfactorily handled in response to growing demand.
The exchange promised to reimburse impacted users for any losses they may have suffered due to the technological malfunctions. The first announcement for the ASI merger was made in March and is expected to convert every AGIX and OCEAN to Fetch.ai (FET) at 1/0.433350 and 1/0.433226 exchange rates. The consolidated portion of FET will move to a new ASI trading ticker.
This was adopted instead of letting users engage in an independent transition. The report has it that after the token rose by 40% on Wednesday, the FET/AGIX/OCEAN pairs eventually ran out of steam. Weeks after FET peaked at $1.83, it dropped to $1.46 and has remained so as of press time. The decline in market value has also extended to OCEAN and AGIX, having been linked to the ASI exchange.
Bitfinex, Binance, and Other Major Exchanges Automates ASI Function
However, exchanges like Bitfinex, Binance, and other top-performing cryptocurrency exchanges have all admitted to automating the process, removing all trading pairs, and replacing them with the new ASI. Furious investors took to social media platforms and online forums to vent their frustrations, highlighting the financial losses and disruption caused by the botched merger.
The comments by Coinbase users after the announcement was made on the company’s official X handle were that of frustration. Coinbase users in the comment section faulted the company for not supporting the initiative. Another fumed that users may likely start leaving the platform should they continue with this trend.
Moments after Coinbase announced the FET/USD pairs on its platform, it was declined in other exchanges hence, further escalating the token’s situation. Other Coinbase users have also come to claim they have abandoned the platform over the ASI development. Some others also claim to have moved their FET assets to the Binance exchange.
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