Cryptocurrency exchange MEXC is considering the establishment of a $100 million Guardian Fund designed to enhance user protection and market transparency. The fund’s primary objective is to provide immediate compensation for user losses resulting from significant security breaches on the platform.
A key feature of the initiative is the public verifiability of the fund’s allocation. MEXC plans to make the fund’s wallet addresses accessible, enabling real-time tracking of compensation distribution and ensuring accountability.
Tracy Jin, Chief Operating Officer of MEXC, highlighted the fund as a concrete commitment to safeguarding users and promoting market stability in the face of increasing cyber threats. Jin emphasized the exchange’s focus on transparency and user security through this substantial financial pledge.
Industry observers suggest the Guardian Fund could potentially set a new benchmark for security measures within the cryptocurrency exchange sector, encouraging other platforms to adopt similar protective frameworks.
The initiative is anticipated to bolster user confidence, potentially reducing panic selling and helping to stabilize trading volumes during security incidents by providing a clear mechanism for redress.