Ju.com's 1.9 Billion JU Computing Power Liquidation Plan: A Strategic Lifeline or a Misstep?

In October 2025, Ju.com unveiled its 1.9 billion JU computing power liquidation rescue plan, valued at $3.8 billion, to cushion traders hit by market volatility between October 10–11. This initiative, announced on October 13, aims to distribute computing power subsidies (up to 10% of liquidation amounts) to eligible users, with rewards tied to task completion (e.g., KYC, deposits, social media engagement) and a first-come, first-served allocation model, as reported by Stablecoin Insider. While the plan signals aggressive user retention and crisis management, its long-term implications for investor confidence and financial sustainability remain contentious.

Strategic Rationale: Liquidity as a Competitive Edge

Ju.com's rescue plan aligns with its broader strategy to position itself as a bridge between traditional finance and decentralized ecosystems. By leveraging its Real-World Asset (RWA) innovations-such as the "1:1 Real Custody Holdings" model for Hong Kong stocks-the platform has demonstrated a commitment to liquidity-driven growth in a GlobeNewswire release. This model allows users to stake real-world assets (e.g., blue-chip stocks) to earn liquidity certificates and mining rewards, creating a self-sustaining ecosystem, as detailed in a TheNewsCrypto profile.

The rescue plan further reinforces this narrative. By offering computing power that generates tradable JU tokens daily, Ju.com incentivizes users to re-engage with its platform, potentially stabilizing trading volumes during turbulent markets. Stablecoin Insider reported that the pilot version of this program was fully claimed within minutes, prompting the expanded $3.8 billion allocation. This suggests strong demand for liquidity support among traders, particularly in a market where forced liquidations can erode trust.

Financial Credibility: Profits, Reserves, and Risks

Ju.com's ability to fund the rescue plan appears rooted in its robust Q3 2025 financials. The platform reported $49.788 billion in quarterly revenue, a 24.17% year-over-year increase, according to Macrotrends data, and has implemented a Strategic Buyback and Burn Plan using operating profits to reduce JU token supply, as outlined in its "Strategic Buyback and Burn Plan". These measures indicate a deflationary approach to tokenomics, which could bolster long-term value.

However, the lack of explicit disclosures about Q3 liquidity reserves raises questions. While Ju.com highlights its RWA initiatives as a funding source in the GlobeNewswire release, the $3.8 billion rescue plan represents a significant outlay. Critics argue that without transparent cash flow statements or third-party audits, the plan could strain reserves, particularly if market volatility persists. For context, the Dogecoin Foundation's liquidity reserve-while smaller in scale-faced scrutiny over its ability to sustain long-term transaction support, as noted in a Dogecoin Foundation post.

Market Reactions: Sentiment vs. Substance

Post-announcement, the broader market environment was cautiously optimistic. Q3 2025 saw strong AI-driven gains and a Federal Reserve rate cut, creating a favorable backdrop for tech and crypto assets, according to an Oxford Harriman commentary. However, JU token price movements post-October 13 remain ambiguous. As of late September 2025, JU had experienced a 75.66% decline over seven days, per a MidForex forecast, suggesting pre-existing bearish sentiment. While the rescue plan may have stabilized short-term confidence, its true impact will depend on execution and user participation.

Analyst commentary is sparse, but the task-based verification system-requiring users to follow social media, invite new participants, and meet trading thresholds-has drawn mixed reactions. While it ensures targeted distribution, it also risks alienating users who view it as manipulative. A similar approach by the 5M project risk compensation program faced criticism for stringent verification requirements, as reported by Stablecoin Insider.

The Verdict: Lifeline or Misstep?

Ju.com's rescue plan is a strategic lifeline for traders and a bold statement of platform resilience. By prioritizing user retention and liquidity, the company aligns with broader trends in DeFi and RWA integration. However, long-term investors must weigh the lack of financial transparency against its innovative ecosystem.

For the plan to succeed, Ju.com must:
1. Disclose liquidity reserves and funding sources to allay concerns about solvency.
2. Avoid over-reliance on task-based incentives, which could dilute the plan's effectiveness.
3. Leverage its RWA partnerships (e.g., xBrokers) to generate sustainable revenue streams.

If executed well, the rescue plan could cement Ju.com's reputation as a crisis-resilient platform. If not, it risks becoming a costly short-term fix in a volatile market.