Exit stage left: Eqonex to close crypto exchange after two years.
The company also said that it will relocate its main operation and many management personnel from Hong Kong to the United Kingdom.
Eqonex, a Nasdaq-listed digital asset investment business, has stated that it would depart the “crowded crypto exchange industry” by closing a portion of its activities.
Eqonex said on Monday that it would halt trading on its cryptocurrency exchange on August 22, with customers able to withdraw assets until September 14. The shutdown was part of an attempt to consolidate operations with the goal of providing “the highest potential for revenue growth and long-term financial sustainability,” which included Digivault’s asset management and custody services.
“Closing the exchange would greatly simplify our company, concentrate our focus, free up resources, and enable us to function as a more efficient organization with the ability to aggressively pursue market sectors with the highest promise,” Eqonex CEO Jonathan Farnell said. “We are realistic in our assessment that our exchange will not shift the needle for us financially in the short-to-medium term.” We don’t see the point in continuing to pay the expenses of running an exchange through what may be a lengthy market slump.”
As part of the strategic adjustment, the exchange said that its EQO coin “would halt trading with immediate effect.” Eqonex also said that it will relocate its main business and many senior personnel from Hong Kong to the United Kingdom, where majority of Digivault’s activities were situated.
Since its inception in May 2020, Eqonex has had a few changes in leadership, with Richard Byworth directing the exchange’s launch as CEO from 2018 to 2021, and interim CEO Andrew Eldon taking over in December 2021. Farnell joined the business in March, having previously worked at Binance and eToro.
Eqonex’s board of directors said in December 2021 that they had explored “merger or acquisition possibilities” prior to most of the significant volatility and market slump in May. Binance’s payment subsidiary Bifinity announced in March that it will supply Eqonex with a $36 million convertible loan in an attempt to grow the firm’s offerings, with an emphasis on digital custody services at Digivault.
Eqonex shares were trading at $0.79 at the time of publishing, down around 1.75% in the previous 24 hours.