6. Gemtrade LLC Acquisition

a. Acquisition

Galaxy DAO has acquired GemTrade LLC, operator of former forex exchange GemForex.

GemForex was a large and popular exchange that ran into difficulties in 2022 when it suffered problems related to the fraudulent actions of three outside parties. The simultaneous events of a rampant abuse of bonuses by a third-party group, the embezzlement of company funds by a payment processing company and unpaid funds by a second payment processing company led to liquidity problems and financial difficulties for Gemforex. On 31st May 2023 GemTrade management were forced to take the decision to suspend trading on the exchange and halt trader withdrawals. All accounts on Gemforex had to undergo forced settlement and all open positions were closed.

Galaxy DAO is launching Trade Planets, a trading exchange focused on forex and crypto assets, and in order to scale quickly Galaxy DAO required the securing of a large number of unique users. Acquiring Gemtrade LLC allowed the DAO to achieve this in a short timeframe and scale user-base rapidly.

b. Acquisition Details

Galaxy DAO acquired Gemtrade LLC (SVG FSA registration number 1335 LLC 2021), based in Saint Vincent and the Grenadines on 1st September, 2023 10:00 AM JST. All receivables and payable rights, obligations and user information held by Gemtrade LLC and its trading platform, GEMFOREX were transferred to Galaxy DAO.

Gemtrade LLC was totally absorbed into Galaxy DAO and the Gemforex trading platform no longer exists as of the date of the acquisition.

c. What the Acquisition means for former GemForex Traders

Galaxy DAO recognizes the stress and aggravation suffered by Gemforex traders due to suspended trading services & halted withdrawals on the GemForex exchange. Galaxy DAO has addressed the issue of traders who had funds locked within Gemforex by issuing tokens to former GemForex traders called GBOND. These tokens reflect the funds tradersheld within their Gemforex trading accounts at the time of forced settlement and when the exchange ceased trading. GBOND tokens have already been issued to former GemForex traders as of 16th September 2023, and users may view and interact with their tokens through their MyPage.

Galaxy DAO have devised various methods of allowing former Gemforex traders to utilize their credit rights through GBOND within the Galaxy DAO and Trade Planets ecosystems. These methods include automatic interest earned on locked GBOND, lending pools and liquid staking pools on unlocked GBOND, first rights to investment opportunities in Launchpad start-up companies, token raffles, the opportunity to partake in revenue and profit shares distributed by Galaxy DAO, and allocation to Galaxy DAO governance tokens.

d. Unique Benefits Former GemForex Traders Receive

GBOND is a token unique to former GemForex traders and offers benefits within Galaxy DAO and Trade Planets which other users do not enjoy.

Firstly, GBOND earns automatic interest at 5% per annum. This interest is paid in the form of a Delayed Damages Token (DDT), which can be exchanged at a later date (for stablecoin or other tokens). Traders need not do anything with their GBOND to earn automatic interest, simply leave it in its locked state and allow it to accrue.

Secondly traders can unlock their GBOND and access lending and staking pools. Holders can borrow against their credit rights, and utilize the staking pool which holds the unique advantage of rewarding the trader in stGBOND, a publicly tradable token which holds practical utilities within the Trade Planets exchange and which can be exchanged for PNT (the Trade Planets utility token) at a rate more favourable than the open market values of stGBOND and PNT.

Galaxy DAO wish to give former GemForex traders the most potential benefit possible when utilizing their credit rights within the DAO and its services/platforms. Galaxy DAO holds former GemForex traders in high regard as valued members of the DAO and strives to support them in reaching economic prosperity and financial abundance.