AEX exchange liquidating traditional assets to settle debts
AEX exchange has announced strategic plans to liquidate some its traditional assets to repay debtors.
Troubled exchange AEX under siege
Assets to be liquidated include box office and TV income rights as well as stock holdings of companies. AEX will sell the investments at a discounted price of 20-40%. Funds raised will be used to repay debts.
Liquidators must sign the equity purchase contract using their full names. In addition, they will be required to complete a questionnaire before sending the necessary amount to the black hole address for the acquisition. Their official blog also identified that rules would change depending on the contract at hand and the asset to be liquidated. Liquidators will make all purchases through AUSD, the exchange’s native stablecoin.
The announcement comes as part of the main idea of AEX’s plans to reduce customer losses and expand AUSD’s usage as a competitor to Tether’s own stablecoin USDT.
“We believe that as long as we do this, we will be able to gain more people’s support. No matter how long it takes, our goal of making AUSD larger than USDT will definitely be achieved,” AEX wrote.
AEX limits its services to users
On Dec. 12, AEX said it would limit its services as a compulsory measure to comply with regulators who have been on the exchange’s tail for months.
Following this announcement, AEX said it plans to repurchase 10% of the total supply of AUSD every Monday on Uniswap, one of the largest decentralized exchanges in the world. The repurchase of the stablecoin from the AUSD-USDT liquidity pool on Uniswap is a plan to ensure the stablecoin will maintain its deflationary mechanism until AUSD retails the standard, 1 AUSD ≥ 1 USDT.
Among other crypto-oriented entities, AEX fell victim to the bearish market volatility that began in 2022, catalyzed by FTX’s downfall. Throughout the year, tough times have rendered the crypto market ‘unsafe’, bringing exchanges such as AEX near collapse. AEX has maintained its limited operations hoping for a better future as the crypto winter seemingly ends.