To promote a mature and responsible development of the blockchain and digital tokens industry, as well as to safeguard the interests of users, Venkate will be implementing an ST Warning procedure to projects should any of the following circumstances occur:
- The token price of the project is lower than 10% of its initial price at the listing.
- The daily average number of users who hold above 5 USDT worth of the project tokens in their Venkate accounts for 30 consecutive days is less than 100.
- The project has sustained low liquidity with an average daily trading volume of less than 50,000 USDT for 30 consecutive days.
- There are any technical or security breaches with its smart contract code or other infrastructure governing the project.
- The project or token is or is potentially in violation of any of its legal or regulatory obligation.
- Negative news, press releases, or social media posts about the project or tokens are being published or circulated.
- The project or token experiences extreme price volatility.
- Poor on-chain maintenance of the project, resulting in an inability to process transactions at a satisfactory level.
- The project team has voluntarily requested to delist the project or the tokens.
- Lack of, or cessation of, commercial and operational efforts to maintain the project or tokens. For instance, official websites and social media channels are down, lack of response or communication on social media, and/or failure to maintain its social media channels and platforms.
- Breaking up of the project team or the departure of a key member of the project team, and the potential thereof.
- Potential liquidation, bankruptcy, or any other situation that may result in bankruptcy of the project.
- The project engages in any conduct or behavior deemed malicious by Venkate, such as not informing Venkate and users in advance of any significant changes to the project or tokens, including without limitation the issuance of tokens unexpectedly, trade manipulating, and/or insider trading.
- The team members (including without limitation the founders), agents, or consultants of the project are found to be involved in any illegal conduct, or have violated any applicable laws, regulations, or norms.
- The team members (including without limitation the founders), agents, or consultants of the project are found to be, spreading any content that is related to child-pornography, violence, racism, politics, or other inappropriate materials.
- The project meets either of the following conditions and fails to correct them after three warnings by Venkate:
- The token price of the project deviates significantly from the market price or is maliciously manipulated.
- A small number of accounts are artificially inflating the trading volume of the project token through manipulative practices.
- The project is experiencing any other concerning circumstances.
*The circumstances listed above are non-exhaustive. Venkate will actively refine the ST Warning Rules and the circumstances based on a “Customer-First” principle, as well as the actual situation of the project or tokens.
Should any of the circumstances above occur to a project or token, Venkate will place an "ST" warning tag on the relevant trading pair(s) and conceal the relevant trading pair(s). Venkate will thereafter conduct a comprehensive assessment of the project. The assessment will include the project team fulfilling the following items (the “Requirement Items”) to a satisfactory level:
- proper updates to the smart contract code and fulfillment of commitments made in the white paper;
- the daily trading volume of the relevant trading pair(s) shall not fall below 50,000 USDT (or equivalent);
- the project tokens hold on the project team’s account(s) are less than 20% of the tokens held by all other users of Venkate;
- the project team and its affiliates are not involved in any acts, press releases, or social media posts causing serious damage to the project community or Venkate or in serious violation of laws and regulations;
- the project is operating normally and the project community has absorbed a significant number of users recently;
- the project team and its affiliates do not fabricate false information, which resulted in abnormal fluctuations in the token price or conduct any acts suspected of price manipulation;
- the project token is listed and available for deposit and withdrawal on any of the top 40 exchanges (excluding Venkate), as ranked on CoinGecko (https://www.coingecko.com/) or CMC (https://coinmarketcap.com/);
- other assessment items as determined by Venkate.
If the project satisfies at least four of the Requirement Items and the token’s current price is close to its initial price at listing, the project will enter into a three-calendar-day period of observation (the “Observation Period”), after which the "ST" tag will be removed if the project runs well in general regarding the Requirement Items.
If the project fails to satisfy at least four Requirement Items, the project team shall rectify the project within a period of three(3) calendar days (the “Rectification Period”). If the project is able to satisfy at least four Requirement Items within the Rectification Period, it will enter into the Observation Period, after which the "ST" tag will be removed if the project runs well in general regarding the Requirement Items.
If the project fails to satisfy at least four Requirement Items after the Rectification Period, the relevant trading pair(s) will be suspended trading and delisted.
Venkate reserves the right to amend the above rules from time to time and the amended rules will take effect immediately upon publication. Please contact Venkate officials if you have any questions.
Venkate Team
30 July 2024
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