Ju.com Launches 1.9 Billion JU Computing Power Liquidation Rescue Plan Valued at $3.8B
News Summary
Cryptocurrency exchange Ju.com announced on October 13, 2025, a liquidation rescue plan to distribute 1.9 billion computing power, valued at $3.8 billion, to traders who experienced liquidations during the market volatility on October 10-11. The program covers liquidations across all platforms and offers compensation equal to 10% of the liquidation amount in computing power, running until October 20. This initiative follows a successful smaller pilot program that was fully claimed within minutes, prompting Ju.com to expand the offering. To qualify, traders must complete several verification tiers, including social media engagement, form submission, KYC verification, depositing ≥100 USDT, inviting new users, and achieving a total futures trading volume of ≥100,000 USDT. Ju.com's computing power is valued at 2 USDT per unit and generates daily tradeable JU tokens. Rewards will be distributed within 7 business days after the program concludes. The platform stressed strict verification of liquidation proof, warning that accounts submitting falsified evidence would be permanently frozen. Each trader is limited to one participation, and distributed computing power cannot be transferred or sold.
Background
Founded in 2013, Ju.com has grown into a comprehensive crypto ecosystem operating in over 100 countries with more than 50 million users. The platform integrates exchange services with its JuChain blockchain infrastructure, xBrokers RWA brokerage, JuPay & JuCard PayFi system, and innovative features designed to eliminate traditional barriers between centralized and decentralized finance, providing seamless, secure, and rewarding crypto experiences. The launch of this liquidation rescue plan follows a period of heightened market turbulence on October 10-11, 2025, which resulted in significant liquidations for many traders. Ju.com's initiative reflects its stated "user-first philosophy," aiming to support affected traders and potentially stabilize market sentiment by offering computing power as compensation.
In-Depth AI Insights
What are the true underlying motivations behind Ju.com's move, beyond the stated "user-first philosophy"? Are there deeper strategic considerations? - Ju.com's seemingly generous gesture likely aims to bolster its brand reputation and market share within the highly competitive cryptocurrency landscape. Such actions, post-large-scale liquidations, can effectively mitigate user dissatisfaction, project a responsible image, and potentially attract new users seeking more reliable alternatives after poor performance on other platforms. - This rescue plan could also be a clever marketing and user acquisition strategy. By requiring KYC verification, deposits, new user invitations, and trading volume thresholds, Ju.com effectively grows its user base, liquidity, and active trading volume while providing compensation, thus converting potential 'losses' into future growth opportunities. - In an increasingly scrutinized regulatory environment, especially following significant market volatility, proactive measures to address user losses might position Ju.com favorably against future regulatory oversight, demonstrating its commitment to market stability and user protection. What does compensation in "computing power" rather than direct fiat or stablecoins signify for both Ju.com and the recipients? - For Ju.com, distributing computing power is a way to issue new value rather than directly expending an equivalent amount of fiat or stablecoins from its reserves. This can alleviate immediate cash flow pressures and potentially boost the value of its native token ecosystem by increasing demand for and circulation of JU tokens. - For recipients, the value of computing power is indirect, requiring them to 'mine' JU tokens and then sell them on the market for monetization. This means the compensation isn't immediate liquidity, and its ultimate value depends on the future market performance of JU tokens and mining efficiency, introducing additional risk and uncertainty. - This compensation mechanism also incentivizes users to remain within the Ju.com ecosystem, increasing platform activity through mining and trading JU tokens, thus creating deep ties between user retention and platform value. What broader implications might this large-scale liquidation rescue plan have for the cryptocurrency market and industry norms? - Ju.com's action could set a precedent within the crypto industry, suggesting that exchanges bear some responsibility to compensate affected users after significant market turmoil. This might prompt other exchanges to consider similar programs to maintain user trust and avoid competitive disadvantages. - While intended to stabilize market sentiment, such 'rescues' could, to some extent, create moral hazard. Traders might become more aggressive in taking risks during future market volatility, expecting some form of compensation if liquidations occur, potentially exacerbating market instability. - This self-initiated industry compensation mechanism might also draw regulatory attention. Governments could examine the effectiveness and fairness of such plans, potentially using them as a basis to develop more explicit consumer protection regulations that require greater responsibility from exchanges, particularly regarding risk management and transparency.