Cryptocurrency and tokenized securities trading platform DX.Exchange is shutting down. The company is on the look out for a merger or buyout, but is likely to seize operations. The exchange announced that it would be closing its operations while it searches for a buyer in a blog published on Sunday. Users can withdraw their funds until November 15th.
The reason for the exchange shutting down is in the operational costs. “The costs of providing the required level of security, support and technology is not economically feasible on our own,” they wrote. The Estonia-based platform was launched nine months ago.
DX.Exchange used the Ethereum blockchain for its tokens, while its software came from NASDAQ. Investors could buy tokens which would represent actual stocks in major corporations like Apple, Tesla and Nvidia. Crypto investors were able to invest in these companies using their crypto portfolio. This made DX the first to offer this type of trading, completely regulated by the European Union.
Details about the amount of trading on DX.Exchange is unknown. Before the platform launched they communicated that 500 thousand people had already registered. However, how many of them were actually trading is net clear. After launch the exchange came under fire. It was accused of fraud, while the exchange turned out to have some serious security weaknesses.
Other crypto exchanges flourish
While DX.Exchange didn’t make it in the current market, others are doing a great job. Binance has launched a bitcoin futures platform recently, which is getting lots of traction. Earlier this weekend John McAfee announced that his decentralized trading platform would incorporate another blockchain into its ecosystem.
At the same time several mainstream companies have been embracing cryptocurrency exchange. Japanese social media giant LINE now has a crypto exchange in its Line messenger. In the same country Yahoo! bought a stake into a cryptocurrency exchange as well.
In South Korea we’ve seen Kakao Corp launching a blockchain and integrated decentralized apps into its flagship products, while companies like Samsung have embraced cryptocurrencies into their smartphones. Cryptocurrencies are slowly reaching the mainstream audience once again, but before and after that happens some crypto projects will still fail.
Also published on Medium.