Just nine months into the business, Estonia-based crypto and tokenized stocks trading platform, DX.Exchange has announced that it will temporarily halt operations to rectify its financial struggles.
According to a blog post published by the firm on Nov 3, the temporary shutdown was necessary since “the costs of providing the required level of security, support, and technology is not economically feasible.”
Following the announcement, DX.Exchange halted deposits and trading on the platform, warning users that it will close all open orders at 12:00 GMT on the same day.
Users of the platform were also asked to submit a withdrawal request on or before November 15 to claim their funds, with the exchange confirming that the funds are safe and also that returning it would be necessary as the firm seeks a sale or merger in the coming months.
Reporting on the chances that the company stays afloat despite the latest abrupt development, DX.Exchange confirmed that the decision made by the board [of directors] is the best interest for shareholders. The announcement further noted:
In the event, a merger or sale is not completed in a timely matter then the exchange may not resume operations and take appropriate action.
The company also promised to release further information to the user community as the situation develops.
Sadly, DX.Exchange is not the only crypto exchange that has gone off the radar this year for financial reasons. Stmarket.co reported in October that Coinexchange.io halted operations citing financial struggles linked with the crypto bear market.