On August 15th, 2022, Nasdaq listed crypto financial services firm – EQONEX announced leaving the crypto exchange services space. The company indulged in asset management and custody businesses like services. In 2020, EQONEX launched their crypto exchange services that they now decided to shut down.
Official website of EQONEX stated exit from exchange services is their decisive action towards streamlining the company’s operations. After this, the company would be more focused towards their core services of asset management and custody. Since they possess high potential of growth and hold financial sustainability for the long term.
Chi-Won Yoon – Chairman EQONEX – explained the strategic priorities and intention of the company which is to bring their sole focus towards their businesses with competitive advantages. The company looks towards leveraging their traditional finance with long held expertise and experience. Yoon added that the decision of closing the exchange also falls along with the company’s strategic framework.
The company would be in position to reduce the heavy cost incurred during the operation of crypto exchange that will result in improving their financial position. In this way, a lot of the digital assets services company’s resources will be free and can be employed towards the sectors where the company holds competitive advantages.
Blogpost on the company’s website outlined that EQONEX launched the crypto exchange when the sector was experiencing significant growth. However, following the growth, more contenders joined the space and by today, nearly 300 spot crypto exchanges share the market. On top of that, most of them replicate each other in many features and offerings.
According to the company, it became challenging for them to run an exchange and keep it profitable. Crypto exchange sector has low margin and extreme competition that requires notable tech support. On top of that, trading volumes of many crypto exchanges have seen significant fall recently given the market downturn.
EQONEX crypto exchange will be operating till 22nd August, 2022. However, customers will be able to withdraw their funds until September 14th, 2022.
Source: https://www.thecoinrepublic.com/2022/08/16/eqonex-closing-crypto-exchange-services-given-volatility-and-low-volume/