Nasdaq-listed digital asset investment firm Eqonex has announced it will exit the “crowded cryptocurrency exchange space” by shutting down some of its operations.
In a statement on Monday, Eqonex said that it will close operations on its cryptocurrency exchange on August 22, while users will be able to withdraw funds until September 14. The firm said the closure was part of an effort to streamline operations that were focused on delivering “the highest potential for revenue growth and long-term financial sustainability,” which included its custody and asset management services at Digivault. .
“The closure of the exchange will significantly simplify our business, narrow our focus, free up resources and allow us to operate as a more efficient organization with the ability to aggressively go after market segments that offer the most potential.”said Eqonex CEO Jonathan Farnell. “We are realistic that our exchange will not move us forward financially in the short to medium term. We do not see the value in continuing to bear the costs of running an exchange during what may be a prolonged market downturn.”
Important announcement from EQONEX. Today we announced that we will streamline our operations to focus on asset management and custody.
Read our press release: https://t.co/M9zmDyOjIB (1/6)
— EQONEX Group (@EQONEXGroup) August 15, 2022
Important announcement from EQONEX. Today we have announced that we will streamline our operations to focus on asset management and custody.
The exchange said that its EQO token will “de-trade with immediate effect” as part of the change in strategy. Eqonex added that it would be moving its core business and several management people from Hong Kong to the UK, where many of Digivault’s operations were located.
Released in May 2020, Eqonex has undergone some leadership changes, from Richard Byworth who oversaw the startup of the exchange during his time as CEO from 2018 to 2021 to interim CEO Andrew Eldon who started in December 2021. Farnell took over the firm’s operations in March, with experience at Binance and eToro.
In December 2021, Eqonex’s board of directors said they had discussed the possibility of “merger or acquisition options” prior to much of the extreme volatility and market crash in May. In March, Binance’s payment affiliate Bifinity said it would provide a $36 million convertible loan to Eqonex in an effort to expand the firm’s products, with a focus on digital custody services at Digivault.
At press time, Eqonex shares were trading at $0.79, having fallen roughly 1.75% in the last 24 hours.
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