Belize Broker MTrading Halts Crypto CFD Offering Until Further Notice Due To Weaker Demand
MTrading Suspends Cryptocurrency Offering Until Further Notice Due To Weaker Demand
The cryptocurrency bear market seems to be affecting the whole blockchain industry. This time, the Belize-regulated broker called MTrading has decided to suspend its cryptocurrency CFD offering due to weaker demand from clients. Now, the offering will be suspended until further notice. The information was released by Finance Magnates a few days ago.
Traders that have open positions in the affected assets were left with a close-only feature. On February 28, the open CFDs will be closed at the market close price. Orders that were not filled will also be deleted. Thus, traders will not have the possibility to open new trades with cryptocurrency.
The company commented on the matter:
“While we believe our trading conditions were very good for crypto trading, the demand for these instruments was not what we had anticipated. We still believe blockchain and cryptocurrency has a place in the future, but for now, better opportunities lie in more traditional instruments.”
It seems that the bear market is not attracting as many investors as it did in the past. At the end of 2017 and the beginning of 2018, the market was skyrocketing. Companies were launching Initial Coin Offerings (ICOs) and projects were gathering several million dollars in funds.
The company, as well as other firms, launched their cryptocurrency products when Bitcoin and other digital assets were growing in price. Back in December 2018, each Bitcoin was traded close to $20,000. Nevertheless, as soon as it reached that value, the popular digital asset fell to new lows in December 2018.
Due to the strong bullish trend in virtual currencies, created risk management issues that hindered the ability of several companies to sustain the digital asset. Because of this, some brokerages stopped offering Bitcoin CFDs.
As Finance Magnates reports, a large number of brokers were reducing their exposure to cryptocurrencies after this bear market that affected the whole industry