EQONEX, a publicly traded blockchain services company, has announced that it will be shutting down its crypto exchange and will streamline its operations to asset management and its custody business.
EQONEX Shuts Down Crypto Exchange
NASDAQ-listed EQONEX Limited announced that it will close its spot and derivatives cryptocurrency exchange, which was launched in July 2020. It says it will “proactively exit the crowded crypto exchange space by closing the Exchange.”
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The company cites high competition among crypto exchanges and a drastic decline in its trade volumes as key reasons for shutting down its exchange. It also points to low margins as part of the reason for exiting the space.
According to the announcement, the EQONEX exchange will shut down on August 22, giving customers one week to close their derivatives trading positions. Customers have until September 14 to withdraw their crypto to external wallets.
EQONEX to Focus on Asset Management and Custody Businesses
Chi-Won Yoon, the chairman of EQONEX, recently revealed the company’s intentions to focus its resources on businesses where it has “competitive strengths and can leverage its traditional finance expertise and experience.”
According to the announcement, by shutting down its crypto exchange, the company can now focus on businesses that offer the most potential for revenue growth and long-term financial sustainability: its asset management and custody businesses.
On the Flipside
- The native token of the EQONEX exchange, EQO, cannot be withdrawn and has immediately ceased trading.
Why You Should Care
EQONEX launched during the 2020 crypto boom, and its exit from the space could be the result of the crypto markets entrenched in a 9-month-long bear market.
Despite the exit, Brazil is enjoying a crypto boom. Read:
Latin America’s Pactual Launches a Crypto Exchange in Brazil Called Mynt
Read about other exchanges affected by the market decline in:
Crypto Exchange Hotbit Froze Withdrawals and Customer Funds
