According to a post on April 24, the OKX cryptocurrency exchange does not support buying and selling of “shell tokens” listed on the exchange.
The clarification came after OKX staffer Haiteng shared a WeChat series conversations where a person allegedly approached OKX staff to buy "shell tokens", or as the person described:
"[Tokens] It appears OK, but the project can no longer work. Someone wants to take over such projects."
Another message reads: “Find an OKX shell token, the budget is $1.5 million, the deposit has been collected, DM me with the trustworthy ones.” In response to inquiries, Haifeng stated:
"OKX does not support buying shell tokens. Also, projects that can sell shell tokens are those that are normally unable to operate functionally."
Haifeng added that OKX regularly monitors tokens listed on the exchange, and tokens where developers “maliciously manipulate the market, operation, security, and other risky behavior” will be removed from the exchange. "Don't even think about making this kind of money on OKX," he wrote.
On the same day, Mingxing Xu, founder of OKX, also commented on Haifeng's tweet:
"Don't be evil. All projects [that] stopping development will be delisted in accordance with the OKX listing agreement."
Like shell companies, shell tokens involve coins with no significant underlying business activities, assets, or market value. In the case of a shell token, a project may have gained initial momentum to have its token satisfy the listing requirements on an exchange, but then its trading activities and operations stagnate. When a project goes out of business, its underlying token requires manual delisting. As OKX staff have pointed out, buying a shell token can lead to market manipulation.
Do not be evil. All projects that cease development will be delisted in accordance with the OKX listing agreement. https://t.co/zhdO8PCLpI
— Star (@star_okx) April 24, 2023
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