Nasdaq Listed EQONEX Closes Its Crypto Exchange to Focus on Asset Management and Custody
- While blaming the recent extreme crypto market volatility, EQONEX CEO, Jonathan Farnell, added that the company has recorded a decline in traded volume.
- Although trading services will be available in the meantime, the crypto exchange will completely close at 08.00 AM UTC on September 14.
EQONEX Ltd. (U.S NASDAQ: EQOS) has announced it will cease operations of its cryptocurrency exchange on August 22. According to a press release published on Monday, August 15, EQONEX is taking decisive action to streamline its operations and focus resources primarily on Asset Management and Custody.
The company has seen its shares decline over 84 percent in value during the past year. Indeed, the company had significantly leveraged the crypto market, which has seen huge losses over the same period.
While blaming the recent extreme crypto market volatility, EQONEX CEO, Jonathan Farnell, added that the company has recorded a decline in traded volume.
He however reiterated that the company will focus on where its strength lies; based on its team experience.
“We are focused on opportunities that will drive revenue growth and position us for long-term success. Closing the Exchange will significantly simplify our business, narrow our focus, free up resources, and allow us to operate as a more efficient organization with the capacity to aggressively go after market segments that offer the most potential,” Farnell noted.
EQONEX Morphs To Thrive the Volatile Crypto Market
The crypto market is arguably the fastest growing global market right now. Furthermore, the oldest cryptocurrency (Bitcoin which is about a decade old), is up over 300,000 percent according to data by TradingView. For comparison purposes, the S & P 500 Index, which has been in existence for over 100 years, is only up approximately 95,000 percent.
EQONEX Chairman Chi-Won Yoon emphasized that the company is restructuring its focus to maximize its profit margins. According to him, the digital asset custody and asset management business is ripe for them. He added that the company has high odds of succeeding in that sector due to its experience. Moreover, the said market has high barriers to entry given its unique security, technology, and regulatory specifications and the company has laid out strong foundations.
According to the company’s website, the crypto exchange will not be available for deposits from 08.00 AM UTC on August 2. Hereby, the company has advised its customers to close existing derivatives positions.
Although trading services will be available in the meantime, the crypto exchange will completely close at 08.00 AM UTC on September 14. Consequently, EQONEX customers will have ample time to withdraw their crypto assets safely.
Following the closure of the crypto exchange, its native token EQO coin has stopped trading as of today.
Notably, the token is trading around $0.03706909, down over 95 percent in the past year.
According to our crypto data, EQO has a market cap of $655,634 with a 24-hour trading volume of $1,352.
Meanwhile, EQONEX shares have dropped approximately 84.53 percent in the past year. Having declined over 58 percent YTD, the losses seem yet to close.
The woes in the crypto market began when global regulators led by the United States, India, and the European Union struck to flush out bad actors.