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Joystick.club expanding to multi-chain.
Joystick.club is monitoring the situation at Coinflex and working on expanding to multi-chain.
We are actively monitoring the situation with regards to Coinflex disabling their users withdrawals and the main bridge to and from Smart Bitcoin Cash.
Coinflex is currently the custodian of the locked bch that pegs bch to sbch at one to one ratio. Given the risk of insolvency at Coinflex, joystick.club will be taking immediate actions to expand to multi-chain as soon as possible to reduce risk to joystick.club and ensure long-term viability of our project irregardless of the situation at coinflex or smart bch.
For those unaware, because coinflex and smartbch team did not segregate the funds held by coinflex into a secondary foundation or entity, it is possible that in an insolvency and bankruptcy event that the locked BCH funds for smartbch could be paid to creditors leaving sBCH users holding a valueless token without access to its layer1 equivalent.
We hope the sBCH community will push Coinflex to move those funds into a new foundation or entity’s multisig controlled by trusted third parties immediately to provide projects and users more assurance that sBCH is fully backed.
Many projects have been affected by this situation. In the last week we have seen a mad dash to the exits due to decisions made by a private company. SmartBCH community needs to prioritize decentralization in order to continue to attract and retain projects. The market reacted poorly to BCH, FlexUSD (which lost its peg, currently trading at $0.59 to the dollar 😬), Flex coin, and even JOY as prices drop across all of smartBCH.
Thanks to the team at Mistswap and blockNG a new bridge does exist that allows you to exit and enter sBCH via BSC (https://blockng.money/#/bridge). Though it should be mentioned that due to the locked main bridge at Coinflex, and premium for bcUSDT due to many people trying to acquire it, exiting may cost you 10-40%. Please bridge carefully if you should do so.
We will continue supporting sBCH throughout these times, but demand both sBCH team and Coinflex to resolve this situation asap and move the locked BCH into a separate entity. ⚠️ We encourage all of our users to push Coinflex and SmartBCH to move the locked 101,382 BCH (https://blockchair.com/bitcoin-cash/address/qptplw8rl7r7nzmze8mnhrdc3guny3p2ng8vz443qu) into a new multisig held by multiple co-signers not involved in the current Coinflex drama. This should have been done before launch of sBCH. It is imperative they do this soon to provide projects like Joystick.club the guarantee that our hard work is not at risk.
The users of sBCH should never been impacted by the poor decisions of a private corporation. We hope the community and leaders in the community will learn from this.
Remember, not your keys, not your coins. Please stay tuned for more details on which chain we will be launching next. Will will update our channel as we learn more.