At Mudrex, we regularly review the tokens available on our platform to ensure that users continue to have access to assets with reasonable liquidity, availability and trading support.
As part of this review process, certain tokens may be moved from Spot to Web3 when centralised liquidity for those assets becomes limited. This migration helps users continue to hold and access eligible tokens through Web3, where liquidity may be sourced from decentralized exchanges (DEXs) instead of centralized spot markets.
In some cases, based on internal review, Mudrex may also choose to delist a token instead of moving it to Web3.
Why Are Some Tokens Moved from Spot to Web3?
Crypto markets are dynamic. A token that once had active centralized liquidity may later see reduced trading activity, lower market depth or limited availability across centralized venues. When this happens, executing spot trades smoothly may become difficult.
To support continued access where possible, Mudrex may move such tokens from Spot to Web3. This means, the token will no longer be available as a regular spot asset on Mudrex, and liquidity for the asset may instead be sourced from decentralized liquidity pools.
The decision to migrate a token from Spot to Web3 is taken at Mudrex’s discretion. We review multiple factors before making such decisions, including liquidity, market activity, token availability, user impact, project developments and risk considerations.
What Happens During a Spot to Web3 Migration?
When a token is selected for migration, Mudrex will notify users with the relevant details. The migration process may include the following steps:
- Spot trading window: Users will be given a limited time window to sell the token on Spot before the migration takes place.
- Spot trading suspension: After the communicated deadline, Spot trading for the token will be suspended.
- Migration to Web3: User holdings will be moved to Web3, where the token will remain visible as a Web3 asset.
- Web3 liquidity access: Once the migration is complete, liquidity for the token will be sourced from decentralized liquidity pools.
Exact timelines, supported actions and token-specific details will be communicated separately whenever a migration is announced.
What Are Your Options As A User?
If you hold a token that is being moved from Spot to Web3, you will have two options.
1. Sell the token on spot before migration
Users who do not wish to hold the token on Web3 may choose to sell it during the available Spot trading window, if trading is supported at that time.
Once the Spot trading window closes, the token may no longer be available for buying or selling on Spot.
2. Continue holding the token on Web3
Users who wish to continue holding the token may keep their holdings. After migration, eligible balances will be reflected under Web3.
However, users should understand that Web3 liquidity works differently from spot liquidity.
Key Risks to Keep in Mind
Moving a token from Spot to Web3 may change the way liquidity, pricing, and trade execution work. Users should carefully consider the following risks before deciding whether to sell on Spot or continue holding on Web3.
1. Price differences between Spot and Web3
The price available on decentralized exchanges may not match the last traded price seen on centralized spot markets. This can happen because DEX pricing depends on decentralized liquidity pools, market activity, pool depth, and trade size.
As a result, the price at which a user may be able to sell or swap the token on Web3 can be different from the last displayed Spot price.
2. Liquidity may be lower on Web3
If a token has limited liquidity on Web3, users may face higher slippage, wider price movement, or difficulty executing larger trades at expected prices.
3. Higher volatility
Tokens with reduced centralized liquidity and limited decentralized pool depth can be more volatile. Even smaller trades may impact price more significantly when liquidity is thin.
This means the token’s value may move after migration, especially during periods of low market activity.
4. Token may still be reviewed for delisting
Migration to Web3 does not guarantee permanent support for a token on Mudrex. We may continue to review the asset based on liquidity, security, project activity, market integrity, and user risk.
If the token no longer meets Mudrex’s internal standards, we may choose to delist it after further review.
The Approach
Our goal is to give users a transparent and structured process whenever token availability changes. A Spot to Web3 migration is designed to provide continued access where possible, while also making users aware of the risks that come with decentralized liquidity.
Users should review the migration details carefully, assess their own risk appetite, and decide whether they want to sell the token on Spot or continue holding it on Web3.
Frequently Asked Questions
Why is my token being moved from Spot to Web3?
A token may be moved from Spot to Web3 when centralized liquidity for that asset becomes limited. Mudrex may then source liquidity from decentralized exchanges, subject to internal review and asset support.
Do I need to take any action?
If you wish to sell the token on Spot, you may need to do so before the communicated deadline. If you wish to continue holding it on Web3, no action may be required unless specifically communicated.
Will my token balance change after migration?
Your eligible token quantity is expected to remain the same during migration. However, the market value of the token may change based on Web3 pricing and available liquidity.
Will the Web3 price be the same as the Spot price?
Not always. DEX prices may differ from the last traded Spot price because Web3 pricing depends on decentralized liquidity pools, trade size, and market activity.
Can I sell the token after it moves to Web3?
This depends on available Web3 liquidity and token support. If liquidity is available, users may be able to sell or swap the token through Web3. However, execution price and slippage may vary.
What happens if there is low liquidity on Web3?
Low liquidity may lead to higher volatility, higher slippage, or difficulty executing trades at expected prices. Users should check the risks before making any decision.
Can Mudrex delist tokens after moving them to Web3?
Yes. Mudrex may continue to review the token and may delist it if it does not meet internal standards for liquidity, security, market integrity, or user protection.
