DX.Exchange Suspends Operations, Looks for New Buyer
- Security costs, support and technology are causing the startup to put the business on hold.
- Customers who would like to withdraw should submit a request before November 15th.
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DX.Exchange dropped the bomb via a blog post announcement stating that they are stopping operations until a new owner is found.
The company that previously offered tokenized shares in companies part of the Nasdaq stock exchange declared halt of its operations as they will seek “a merger or outright sell of the company”. This was decided after a board voting that happened on Monday.
The worrying news is that, if a buyer is not found, “the exchange may not resume operations”. As written in the blog post, deposits are already suspended and everyone who would like to withdraw funds should submit their request by November 15th.
They also wrote the reason for the decision:
“The costs of providing the required level of security, support and technology is not economically feasible on our own.”
This problematic situation comes just 10 months after DX.Exchange’s launch. When they started working in January 2019, they provided customers with the opportunity to buy tokenized shares in Apple, Amazon, Alphabet, Facebook, Microsoft, Netflix, Tesla, Baidu, Nvidia and Intel Corporation.
This temporary halt comes soon after Circle’s spinning off from Poloniex. According to Jeremy Allaire and Sean Neville, Circle co-founders, in the future they will focus more towards their USDC stablecoin and the SeedInvest crowdfunding platform. Poloniex was renamed to Polo Digital Assets, Ltd. as part of the deal.
- The development is the result of a new partnership between the Swedish-based crypto exchange and payments platform Klarna.
- By connecting to Klarna’s network of 5,000 European banks, more than 180,000 users are now able to purchase crypto directly from their bank accounts.
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- Diginex has expanded its product suite to include borrowing and lending.
- The new service will allow its users to earn interest on their BTC and ETH holdings.
- The upgrade started Phase 1 our of 3, allowing users to migrate their tokens from IDEX 1.0 to IDEX 2.0 with the help of supporting tools.
- The new platform is said to significantly lower transaction costs and number of failed transfers, with plans to completely remove gas fees in Phase 2.