GokuMarket User Acquisition Challenges & Recovery Plan
We are pleased to announce that GokuMarket is in the final stages of an acquisition agreement with ByteX, a Canadian-headquartered International Exchange.
We’ve worked tremendously hard to get to this point, and we hope that the plan laid out in the following briefing will demonstrate our commitment to the GokuMarket project, as well as the entire GokuMarket community.
GokuMarket Current State
As per our prior announcement, 2022 has brought about unprecedented market conditions for the entire cryptocurrency industry. We have witnessed the fall of several exchanges including some giants, that none of us thought would be exposed to the degree that they actually were. Unfortunately, GokuMarket was not immune to these adverse conditions either, and we were also faced with the reality of insolvency and bankruptcy.
Causes of GokuMarket’s issues
- The invitation-only pre-launch product called AI Bot, attracted almost 17,000 users from the 1,000,000+ users on the GokuMarket platform. The product was in development, where testing was conducted by using algorithms for market making for GokuMarket. The funds added to the system provided the necessary liquidity for market making within the GokuMarket ecosystem.
- When the GMC unlock program was launched to promote GMC, lot of the users took advantage of the compounding and moved the funds back into circulation significant amount of added liquidity was used to buy back the GMC which entered into circulation. Although the rules of the program were changed several times, the damage created was still quite severe.
- The AI Bot product allowed compounding to take place, which ultimately led to unexpected repercussions. The prelaunch consumers unknowingly increased the capital load on deployment on a regular basis, even before the actual algo closed the positions to realize those profits. A few times, the restrictions on AI Bot products were adjusted, but they were given low priority until the GMC unlock programme, when a lot of GMC was sold and reinvested in the prelaunch items.
- While GokuMarket was working towards recovery, banking obstacles and compliance audits slowed the entire process. By the time we were able to resolve these challenges, market conditions had become unfavourable which left GokuMarket in a position of insolvency and actual bankruptcy, as we had previously seen from Celsius, Voyager, Three Arrows, Vauld, and more.
- The following solutions will provide an alternative to a GokuMarket bankruptcy, as well as a structured repayment plan to the users of the GokuMarket platform.
ByteX Introduction
ByteX is an international licensed exchange with its headquarters in Canada, as well as offices in Switzerland, Lithuania, and India.
The company manages a CeDeFi platform in which the centralized exchange integrates with their unique DeFi system called ZERO protocol. This process enables non-custodial and non-collateralized cryptocurrency lending/borrowing for verified individuals, as well as audited institutional users. Their one of a kind solution provides a transparent, and robust mechanism which provides assurance, and it also addresses the difficulties and eventual collapse recently witnessed in the cryptocurrency ecosystem.
In addition to the current support for fiat currencies such as the Canadian Dollar (CAD), Euros (EUR), Indian Rupee (INR), it is also in the process of adding Swiss Franc (CHF), and Poland Zloty (PLN). ByteX is presently licensed to operate in Canada, European Union, Switzerland, and India. In addition, it is also FINCEN registered and is preparing to offer institutional crypto services in USD based in the United States.
ByteX has partnered with Binance, OKX, and Huobi to provide liquidity, and is also in the process of adding additional top-tier liquidity partners. ByteX is committed to full compliance and transparency, which is why it has integrated with SumSub for KYC/KYB, Chainalysis with Phantom compliance for AML & KYT, Armanino for proof of reserves, and treasury audits. Its main custody partner Copper is insured by AON, Marsh & Arch insurance UK, BitGo provides additional custody as well as insurance, and other partners such as Ledger are on the way.
Looking Forward
GokuMarket.com will be a decentralized DAO-based platform where all GMC holders would leverage from the platform’s revenue by claiming revenue against GMC pledged. The Web3 products suite would include a non-custodial decentralized exchange & NFT marketplace with Web3 based affiliate program and on a mission to build open, secure, and powerful Web3 products.
GokuMarket would run on audited smart contracts on Binance Smart Chain, which eliminates the need to trust a central exchange while trading. GokuMarket combines the security and transparency of a decentralized exchange & NFT marketplace, with the speed and usability of a centralized exchange & NFT Marketplace. All the non-distributed unlock program GMC will be burnt.
A. Non-prelaunch users: All non-prelaunch users will be transferred to ByteX, who is committed to repay 100% of the user balances through a structured repayment plan. Details of the repayment plan along with clear descriptions of the entire process will be circulated to each user via email.
B. Prelaunch users: Details are still being worked out and will be communicated as they become available, but some of the initial discussions have included a revenue share and distribution model between the newly established GokuMarket DAO, and the prelaunch users.
Next steps
- Repayment plan with a clearly laid out description of the entire process will be sent from ByteX to all non-pre-launch users.
- Upon the completion of the non-prelaunch user transfer to the ByteX platform, the repayment plan is anticipated to take effect in August 2022, in accordance with GDPR policies.
- GokuMarket.com will become decentralized, and a roadmap with strict timelines and a whitepaper will be published. The development will be open to the public, and a github link with open source smart contracts for DAO, DEX, NFT, and Affiliate modules will be published.
Contacts
Legal inquiries can be sent on legal@gokumarket.com
Helpdesk/Support queries can be sent on support@gokumarket.com
