With many users stuck in centralized token control limbo, everyone was anxiously awaiting the migration to decentralized zkEVM. In a marketing email ahead of transition, the team wrote: “as part of MXC’s commitment to a full–scale decentralized rollout of the MXC zkEVM Layer 3 blockchain, all DataDash accounts are eligible for a complete balance migration from the DataDash mobile application to the MXC zkEVM Layer 3.” [emphasis my own]. Even on the official migration form 1, the MXC Foundation states that “Upon withdrawal [from DataDash to zkEVM wallet], the MXC tokens will be converted into an equivalent form based on the MXC zkEVM blockchain…By filling out this form, the User agrees to receive all the tokens and waives all future rights.”
A reasonable person would assume that if they had 100 MXC tokens in the DataDash app, they would receive 100 MXC tokens in the zkEVM L3 wallet, as well as their DHX and BTC balances.
WRONG! First, MXC has delayed indefinitely any transfer of DHX or BTC from DataDash to zkEVM. Second, users were shocked to discover that they were given 1 xMXC token in their zkEVM wallet for every 1 real MXC token in their DataDash app. Further, the only avenue provided for conversion of xMXC back to MXC is a volatile asset swap (i.e. not a pegged / stable swap) with only ~$24,000 of total pair liquidity 5 or approx 1,250,000 tokens each of both xMXC & MXC. This meant that only the initial few users were able to recoup a majority of their MXC tokens, as the swap price immediately plummeted to the current ratio of 5 xMXC for only 1 MXC. This means that a user with 100,000 MXC in DataDash is left with only ~20,000 MXC they can withdraw from zkEVM
https://voskcointalk.com/t/mxc-update-exit-scam-revealed-disguised-as-a-transition-by-mxc-foundation/44680
