An Insider's Account: I Worked at Three Exchanges That All Imploded? A former employee of WebSea, JuCoin and CoinUP told WuBlockchain that some small and mid-sized exchanges rely on rising platform-token prices, discounted token purchases, high-yield products, copy trading and agent networks to attract user funds and keep them within the platform. He said WebSea allowed employees to withdraw while ordinary users were unable to do so during a 2024 crisis; JuCoin targeted users in lower-tier markets through mining products and a complex multi-level agent system; and some CoinUP team leaders or agents were required to purchase its CPX platform token, which later suffered a severe price collapse. He said ordinary users could face withdrawal restrictions while employees, agents and other insiders could sometimes withdraw more easily. At JuCoin, withdrawals exceeding deposits were less likely to be approved and profits could be deducted. Dougao argued that in a bear market, some smaller exchanges may increasingly turn to platform tokens, high-yield products and lower-tier user acquisition, highlighting the risks behind “principal protection,” high returns and discounted token purchases.
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