Image source: Eqonex
On Monday, another publicly traded blockchain announced it would close its operations due to the collapse in trading volume.
Eqonex Limited
Eqonex Limited or EQOS recently announced that it will cease its cryptocurrency trading business.
The company’s decision depends on factors such as trading volume, increased market competition and low margins.
Eqonex will close its doors on August 22nd.
With the stock market close next week, clients will have one week to close their derivatives trading position before trading on the platform stops. Customers are also given until 8:00 on September 14 to transfer their encryption activities to an external wallet.
Eqonex also said that registration costs will be revoked in the period.
Token
When the announcement was made, the indigenous EQO (which cannot be withdrawn) immediately stopped the trade.
The token owners are contacted directly regarding their EQO -Saldi.
The CEO of Eqonex Jonathan Farnell previously had been the head of the British Binance operations before going to Eqonex in March.
Farnell released a statement that reads:
“Closing the Exchange will significantly simply our business, narrow our focus, free up resources, and allow us to operate as a more efficient organization with capacity to aggressively go after market segments that offer the most potential.”
Birth of the company
Eqonex is Nasdaq-listed and launched its crypto exchange in the first year of the pandemic (July 2020).
The launch coincided with the period of rapid growth in crypto markets, which saw Bitcoin and Ethereum reach new heights six months later.
By October, Eqonex became the first crypto exchange with a parent company listed on the Nasdaq.
A year later, the company celebrated achieving $5 billion of trading volume within a 30-day period in June 2021.
The success prompted them to suggest at the time that it was “only up” from there for the company.
The current situation
Since then, things have changed and cryptographic markets have been rooted in a bear market of months.
Eqonex plans to direct the resources to Digivault, the company’s custody and patrimonial management activity.
According to the Company, the asset manager was the first crypto custody provider to receive the approval of the Authority for the UK financial conduct last year.
Alternative plans
With the closure of Crypto Exchange, Eqonex hopes that it will become more competitive in other areas of his business.
“The market is now comprised of close to 300 spot exchanges, many of which share comparable features,” said the company.
“The recent extreme market volatility and declining trading volumes have added to the headwinds being felt by exchange operators.”
“We take a realistic view that our exchange will not move the needle for us financially over the near-to-medium term.”
Eqonex is not alone, as other crypto exchanges have recently struggled with falling crypto volumes and prices.
Reference:
Nasdaq-listed Eqonex shuts down crypto exchange due to low volume, ‘intense competition’
