CoinExchange.io Becomes Latest Crypto Trading Platform to Shut Down
Not every crypto exchange is successful. Coinexchange.io, a crypto trading platform focused on altcoin trading, has just announced that its site would be shut down because of financial difficulties. According to the official announcement, the reasons for shutting down were purely financial and completely unrelated to security breaches.
At the moment, the exchange has a daily volume of around $700,000 USD. As Coinexchange.io profits from trading fees, the company is struggling to get money. Also, the low liquidity scares investors, which increases the issue over time.
One of the main reasons why the profits of the company decreased so much is that the altcoin market is becoming considerably weaker since the end of 2017. Bitcoin and other major tokens may have recovered, but most altcoins did not.
The platform affirms that providing its services is no longer a viable idea because they spend too much money in order to provide good services and end up without enough revenue.
Trading will continue until October 15, when it will be suspended. Traders will need to halt their activities until then and all remaining orders will be canceled. Withdrawals will remain active for a longer period of time, however. People will be able to withdraw their assets until December 1. After that, the company will no longer be responsible for the remaining funds.
The large time frame for the withdrawal, around two full months, was possibly decided to prevent the company from being accused of an exit scam, as it happens when companies give a short time frame. Coinexchange.io also affirmed that the company may return in the future if the market conditions change eventually.