The digital asset market has recently been on an upward trend with leading crypto currencies such as BTC and BCH maintaining higher price levels. Unfortunately, this happens too late for some companies on the ground. The latest to have ceased operations is DX Exchange, which is now looking for a way out of the market.
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DX Exchange is looking for a buyer
The Estonian Digital Asset Trading Platform, DX Exchange, has announced that from Sunday, November 3, the platform will only allow more deposits from its customers. Trading is suspended and all open orders have been canceled. This is done to close the exchange until a new buyer can be found for the company. DX can also merge with another switch to reduce the high cost of running the business. The company also assured customers that all their funds were safe and that they had to be returned to allow the merger or sale.
"We must inform the community that the board of directors of DX.Exchange has decided to temporarily close the exchange while we are seeking a merger or a frank sale of the company," the team wrote. on a blog. "The cost of providing the required level of security, support and technology is not economically feasible on our own. The board believes that DX.Exchange represents the best opportunity to succeed for its shareholders and to compete in this difficult market. If a merger or sale is not completed on time, then the exchange will not be able to resume operations and take appropriate action. "
Smaller cryptographic exchanges are struggling to survive in the current market because they have to spend a lot of money to comply with the new regulations and compete with giants such as Binance. However, many other types of digital asset sector companies are also suffering. Recently, we reported that Platin, a secure proof of location proof protocol that encourages nodes to scale using its own token based on a chain of blocks, was closed on November 1, 2019. , despite all the recognition he's got over the past two years.
Shares, Tokenized ETFs and Crypto
DX Exchange was only launched on January 7, 2019. It accepted deposits in BCH, BTC, ETH, USDT, DASH, LTC, XRP and some other cryptocurrencies, as well as traditional fiduciary payment options. Initially, it offered trading in symbolic shares of some of the world's largest public companies, such as Google, Facebook and Amazon. This was achieved through an agreement with MPS Marketplace Securities Ltd., which issued tokens representing stocks via smart contracts and holding real-world stocks based on demand on the platform.
"Numeric values" were supposed to be guaranteed 1: 1 by real-world stocks traded on conventional stock exchanges, such as stock-based rather than fiat-based coins. Unlike traditional stock exchanges, this arrangement allowed the platform to offer its users the opportunity to trade 24 hours a day, 7 days a week.
DX Exchange holds operating licenses from the Estonian Financial Intelligence Unit and reportedly employed more than 70 developers at an R & D center in Israel. It is supported by NFX, a seed and series company. A specialized venture capital firm based in San Francisco. The regulated platform operated in full compliance with Mifid II (the latest EU financial regulations), which meant that it featured a robust AML / KYC process. Its partner, MPS Marketplace Securities Ltd., is a licensed financial company in Cyprus that provides liquidity solutions for the online trading market.
The underlying technology behind DX Exchange is the Nasdaq Financial Information Exchange (FIX), a vendor-independent, standard message protocol that defines an e-mail exchange for the communication of securities transactions between two parties. The platform also supported trading via an API, which means it can easily be integrated with market makers, liquidity providers, algo traders and hedge funds.
In early March, it was reported that DX Exchange had begun offering trading services on symbolized Exchange Traded Funds (ETFs), including QQQ, S & Ps, and SPY with Nasdaq mirror. Later in the month, it was also revealed that the platform was starting to list security chip offers (STOs).
Any security token may submit an application to the list and meet the eligibility criteria for listing on the stock exchange. Potential issuers were assessed based on their achievements, transparency, fundraising methodology and management team. DX also sought legal advice confirming the STO's legitimacy and conducting background checks on the management team and directors. For each security token offered, a white paper explaining the conditions, economic benefits and risks was required.
What do you think about closing DX Exchange? Share your thoughts in the comments section below.
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