Kevin Helms
A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of finance and cryptography.
Nasdaq-listed Eqonex closes crypto exchange due to high competition, falling volume – Exchanges Bitcoin News
Nasdaq-listed firm Eqonex is shutting down its cryptocurrency exchange business. The company cited high competition among crypto trading platforms and falling volumes as the main reasons for closing the exchange.
Eqonex Closing Crypto Exchange
Eqonex Ltd. (Nasdaq: EQOS), a digital asset financial services company, announced the closure of its cryptocurrency spot and derivatives exchange on Monday. The announcement states:
The company will proactively exit the crowded crypto exchange space by closing the exchange.
The Eqonex exchange will close for trading on 22 August at 08.00 (UCT) and for withdrawal on 14 September at 08:00 (UCT). All withdrawal fees are waived, the announcement notes.
Eqonex explained that intense market competition, low margins and the significant technological burden required to ensure optimal performance “have made running a profitable exchange increasingly challenging, especially in the current environment where crypto exchange volumes have fallen.”
The Nasdaq-listed company will focus on crypto asset management and custody services going forward. The firm’s asset management business includes Bletchley Park, a fund of crypto hedge funds. Digivault, the group’s digital asset custody business, is registered with the Financial Conduct Authority in Great Britain
Eqonex CEO Jonathan Farnell commented: “The recent extreme market volatility and declining trading volumes have contributed to the headwinds being felt by exchange operators.” He added:
Our asset management and custody business, Digivault, has already made solid progress with the additional resources we have recently allocated to them.
What do you think about Eqonex shutting down its crypto exchange? Let us know in the comments section below.
Image credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or an endorsement or recommendation of products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on content, goods or services mentioned in this article.
