Europe-based digital currency and securities trading platform, DX.Exchange, confirmed in a blog post on Sunday that it is temporarily stopping operations, to pursue a merger or outright sale of the business.
The decision to shut down operations by the board of directors is coming after the exchange faced severe economic issues that relate to the upkeep and running of the platform. DX.Exchange precisely stated:
The costs of providing the required level of security, support, and technology is not economically feasible on our own.
Following the report, all open orders will be canceled by 12:00 GMT today, with the exchange adding that It does not allow any more deposits and trading on its platform.
It further assured that all client funds are safe; however, it needs to be returned to allow a merger or outright sale of the exchange. Hence, users are urged to submitted requests for withdrawal by November 15th, 2019, else the withdrawal process may be disrupted.
The board of directors believes the decision is in the best opportunity for the exchange to achieve success for its shareholders as well as compete strongly in the market.
The exchange opted to notify users when trading and deposits will resume once a merger or outright sale is completed. But, in the case where it didn’t happen in a timely matter, the exchange said it will take appropriate action and may not resume its operations again.
Regulated in Estonia and powered by Nasdaq, DX.Exchange reportedly combines blockchain technology with the traditional market, arguably being the first to tokenize real-world assets like Tesla and Apple stocks, including Exchange-Traded Funds (ETFs) like QQQ and SPY.
The Estonia-based exchange planned to enable users to purchase shares of famous companies in a token-based platform indirectly. It was also the first exchange to allow accredited, non-U.S. investors to trade security tokens post-offering (STOs).
Meanwhile, in a similar business closure development, Coinfomania reported in October that the cryptocurrency trading platform, CoinExchange will shut down its business operations in December 2019 due to financial issues caused by the crypto winter.
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