Publicly traded crypto Eqonex announced on Monday that it will shut down its cryptocurrency exchange operations, citing falling trading volume, “intense market competition, and low margins.” The company said it is exiting the crowded crypto exchange space and focusing resources on the businesses that offer the most potential for revenue growth and long-term financial sustainability: Asset Management and Custody. Eqonex is part of the Binance Group, the world’s largest crypto exchange operator.
The exchange will close on 22 Aug, which gives customers one week to close their derivatives trading positions. Customers will also be given until 8:00 a.m. UST on 14 Sept to withdraw their crypto assets to an external wallet. All withdrawal fees will be waived during this time.
Nasdaq-listed Eqonex launched its crypto exchange in July 2020 amid the crypto bull run. The company celebrated having achieved $5 billion of trading volume within 30 days in June 2021 and suggested at the time that it was “only up” from there for the exchange. In October, it became the first crypto exchange with a parent company listed on the Nasdaq.
In March 2022, Eqonex entered into a strategic partnership with the Binance Group, making it a sort of subsidiary. Under the terms of the strategic alliance, Lithuanian Bifinity UAB provided a $36 million loan and received the right to nominate key management positions and Board members.
