Nasdaq-listed Eqonex halts crypto exchange due to low volume and ‘intense competition’

Listed on the stock exchange block chain Services company Eqonex Limited (EQOS) announced on Monday that it would end its cryptocurrency exchange operations, citing declining trading volume, “intense market competition and low margins.”

The stock market will close on August 22. This gives clients one week to close their derivatives trading positions, after which all trading on the platform will cease. Customers of the exchange will also have until 8:00 a.m. UST on September 14 to withdraw their crypto assets to an external wallet. All withdrawal fees will be waived during this time, the company said.

Meanwhile, the exchange’s native EQO token, which cannot be withdrawn, immediately ceased operations. Holders will be contacted directly with details of their EQO balances.

“Closing the Exchange will significantly simplify our business, reduce our focus, free up resources and allow us to operate as a more efficient organization with the ability to aggressively tackle market segments that offer the most potential,” Eqonex CEO Jonathan Farnell said in a statement. statement. Farnell was previously responsible for Binance’s UK operations before moving to Eqonex in March.

Nasdaq-listed Eqonex launched its crypto exchange in July 2020 during a period of rapid growth in crypto markets that reached new all-time highs for Bitcoin and Ethereum only six months later. In October, it became the first crypto exchange whose parent company was listed on Nasdaq. The company celebrated reaching $5 billion in trading volume over a 30-day period in June 2021, and suggested at the time that he was “only” from there for the exchange.

But that was then and this is now, with crypto markets entrenched in a months-long bear market. The company now plans to redirect its resources to its custody and asset management business, Digivault. The asset manager became the first crypto custody provider to receive approval from the UK’s Financial Conduct Authority in 2021, according to the company.

Eqonex hopes that by shutting down its crypto exchange, it will be more competitive in other areas of its business. “The market is now made up of nearly 300 spot exchanges, many of which share comparable characteristics,” the company said. “Recent extreme market volatility and declining trading volumes have added to the headwinds felt by stock traders. We realistically view our exchange as not going to make a difference for us financially in the short to medium term.”

Even the most competitive crypto exchanges have struggled with declining crypto volumes and prices in recent months. Blockchain.com announced 25% workforce Fire in July citing stable institutional earnings. Coinbase laid off 18% of its staff the previous month, after which it job a net loss of $1 billion in its second-quarter earnings report.

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