The DX.Exchange has shut down in less than a year after it was established. The firm cited financial hardships as the sole reason for the closure of the business.
The NASDAQ-powered platform has halted all the deposits and trading activities, but users can still make withdrawals using the official email address. DX exchange has been operational for only ten months, but financial constraints led to its closure according to the management.
The announcement was made on Sunday by the Estonia-based company, and they added that they were closing temporarily to look for a possible merger or a buyer for the crypto firm. There were high costs for high-level security and technology involved that the company could not support financially.
Users of the platform, however, have been given until Nov. 15 to withdraw all their funds on the exchange. Announcements also made it clear that if the prospective buyer for the company or merger does not show up, then the firm will have no other option than to close down the business permanently.
DX exchange’s blog post read,
“We must inform the community that the board of directors of DX.exchange has decided to temporarily close the exchange as we pursue a merger or outright sell of the company. The costs of providing the required level of security, support, and technology is not economically feasible on our own.”
Despite saying that if no merger or buyer arrives, the company will shut down for good, they expressed their hopes for a buyer and a successful deal to happen. That is because the firm says it wants the shareholders to be successful from their platform. DX exchange also added that they want to compete in the crypto market too and leaving would not be the best option.
DX became operational in January and enabled users to trade tokenized securities and cryptocurrencies. It is, however, not definite as to what will happen to the DX’s staff who are quite a number.