In an announcement on Monday, Nasdaq-listed digital asset investment firm Eqonex has announced that it will leave the “crowded crypto exchange space” by shutting down its crypto exchange on August 22. Users are still allowed to withdraw funds to September 14. The closure is partly to streamline operations focused on offering “the most potential for revenue growth and long-term financial sustainability,” including asset management and custody services at Digivault.
“Closing the exchange will significantly simplify our business, narrow our focus, free up resources, and allow us to operate as a more efficient organization with capacity to aggressively go after market segments that offer the most potential,” said Eqonex CEO Jonathan Farnell. “We take a realistic view that our exchange will not move the needle for us financially over the near-to-medium term. We don’t see value in continuing to bear the costs of operating an exchange during what may be a prolonged market downturn.”
Eqnoex’s (EQOS) FCA-registered custody business Digivault has “already made solid progress with the additional resources that we have allocated to them recently, and we are bullish about their prospects as we become an organization focused on these high-potential business areas,” Farnell added.
The exchange said its EQO token “will cease trading with immediate effect” as part of the shift in business strategy. Eqonex added that it will move its core business and some people from Hong Kong management to UK, where many of Digivault’s operations are located.
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