EQONEX finally pulls out, the company which launched its native token EQO in the previous year, has issued a notice to its users regarding its closure, and here’s why. The Singaporean-based centralized cryptocurrency exchange which is under Diginex, and also one of the foremost companies to be listed on one of the largest and precisely second-largest stock exchanges Nasdaq cited intense competition in the market, low margin, and declining trading volume as the basic reasons for its closure.
EQONEX is a public trade company offering Blockchain services. In its operations, it combines FinTech (financial technology) and native financial approaches, to give flexible, seamless, access for crypto investors to access crypto in an investor-friendly environment while having functionality intact.
The centralized exchange has decided it will cease operations on the 22nd of August 2022. The estimated time gives users of EQONEX a duration of one week to close their trading positions and pending transactions, which would be followed by a total stoppage of every transaction on the platform.
Furthermore, every user has been given a window period which would last until September 14, 8:00 am UST, to withdraw and transfer their Cryptocurrency assets and holdings to external Crypto wallets. To make this easier for customers, the company also decided to waive every withdrawal charge on withdrawals within this period.
The exchange’s native token; EQO which users cannot withdraw, has ceased trading on the platform. Customers who have this asset in their holdings would be contacted directly by EQONEX to receive details about their asset balances.
According to the EQONEX Chief Executive Officer, Jonathan Farnell in a statement, the centralized Blockchain solution believes that by closing activities on the exchange there would be a means for the greater achievement of operations as an organization. It also suggested that the closure would help narrow focus, simplify business and also free up resources to gain better capacity toggle the Market that offers greater potential.
Jonathan Farnell was a former employee of Binance Exchange, where he served as Head of U.K. operations before moving to EQONEX Exchange in March.
Some suggestions have it that the company was not suited properly for difficult persistent market conditions as is being faced now in the crypto space. The Nasdaq-listed EQONEX was launched in July 2020, a period that was characterized by rapid growth and bullish market condition. Bitcoin and Ethereum witnessed an all-time high at this point.
In October of the same year, EQONEX reached another milestone as the first crypto exchange to have its parent company listed on Nasdaq. Also rose to $5 billion in trading volume in 30 days period. But as market conditions have gone way south and persistently fallen, the company has decided to redirect resources and take a different path.