Digatrade Closes Retail Services With Institutional Minimum Trade Value Set at $25K USD
Digatrade sets the minimum trade value of digital trading at $25,000 USD and cuts off its retail service effectively on October 17th 2018.
Digatrade was formed in 2017 with an aim to provide its users with a publicly traded Bitcoin exchange and further offer blockchain development services and technical support. The company announced on their official website at the start of October that they will no longer be offering a retail services including exchange trading services, fiat deposits/withdrawals and any further retail live order-book trading or functionality. The message conveyed to their shareholders further stated that the company will continue with their institutional services. However, the minimum trade value to these consumers has been set at $25,000 USD.
The previous agreement with ANX Technologies, a Hong-Kong based company to provide online retail trading and share a liquidity order-book has been cut off.
In the official Digitrade retail consumers should withdraw all their digital assets by October 17th 2018, the effective cutoff date. The statement read,
“All Digatrade customers are required to withdraw their crypto-assets by the October 17, 2018 cut-off date. After October 17, 2018, the order-book will be disabled until further notice. In addition, no fiat withdraws are available effective immediately, please convert to crypto and withdraw before Oct 17, 2018.”
Speaking on the recent developments on Digatrade, Brad Moynes, CEO at the company said the move from retail customers to focus on institutional investors was important as it saves the company from the high administrative and compliance costs associated with operating a centralized coin exchange along with the low transaction volume has resulted in the decision.
More information revealed that the company are in search of new acquisitions in the fintech industry with the process already having kicked off.
Digitrade Convertible Promissory Notes
The statement also contained updates on the financials ending Q3 2018 since its advent in 2017 stated that the total funds raised via Convertible Promissory Notes “CPN” amounted to $1.2 million USD. A total of 13 notes [of which 10 have been settled] constitute the $1.2 million USD. The remaining 3 unsettled notes amount to less than $100,000 USD and have reached maturity.
With each CPN charging a fixed interest rate between 8%-12% and a maturity date of 6 months to a year, the parties agreed to market conversion discounts on the terms and conditions. The remaining balance will be settled in Q4 as the company currently focuses on the retail service winding up activity and institutional investors.