Certain individuals have shown interest in purchasing listed tokens that no longer hold market value or development activity. According to an April 24 announcement, cryptocurrency exchange OKX does not support buying or selling "shell tokens" listed on its platform.
The Clarification
The statement followed after Haiteng, an OKX team member, shared a series of WeChat conversations where an individual allegedly approached OKX staff to purchase "shell tokens," described as:
"Tokens listed on OKX where the project is no longer operational. Someone wishes to take over such projects."
Another message read: "Find a shell token on OKX; budget is $1.5M, deposit paid. DM me reliable options." Haiteng responded:
"OKX does not support shell token purchases. Projects willing to sell such tokens typically lack functional operations."
He added that OKX regularly monitors listed tokens, delisting those with malicious market manipulation, security risks, or unethical practices. "Don’t even think about profiting this way on OKX," he wrote.
Founder’s Stance
Mingxing Xu, OKX’s founder, echoed Haiteng’s tweet:
"Don’t be evil. Projects halting development will be delisted per OKX’s listing agreement."
What Are Shell Tokens?
Like ghost companies, shell tokens lack significant business activity, assets, or market value. A token might initially meet exchange listing criteria but later stall in development. When projects cease operations, their tokens should be delisted. As OKX emphasized, buying such tokens may enable market manipulation.
👉 Learn more about OKX’s listing policies
Risks and Compliance
Purchasing inactive tokens risks violating exchange policies and securities laws. OKX proactively delists non-compliant projects to protect users.
FAQ
1. Why does OKX delist inactive tokens?
To maintain market integrity and protect investors from valueless or manipulated assets.
2. Can shell tokens regain value?
Rarely. Without active development, these tokens typically lack utility or demand.
3. How does OKX identify risky tokens?
Through continuous monitoring of trading patterns, developer activity, and security audits.
4. What happens if I trade a delisted token?
Transactions may fail, and holdings could become irrecoverable.
5. Are shell tokens illegal?
Not inherently, but their misuse (e.g., pump-and-dump schemes) violates regulations.
6. How can I report suspicious tokens?
Contact OKX support with project details for review.
👉 Explore OKX’s security measures
Disclaimer: This content does not constitute financial advice. Cryptocurrency investments are unregulated and may not be suitable for all investors. Conduct thorough research before investing.