Estonia-based digital asset exchange DX.Exchange has closed its doors as it attempts to pursue a merger or a new buyer for the company.
DX.Exchange launched in January of this year with aims of operating a regulated security token exchange that utilised Nasdaq’s matching engine and market surveillance technology.
But just nine months later, the company has had to cease trading, citing costs as the primary reason for its failure.
“The costs of providing the required level of security, support, and technology is not economically feasible on our own,” DX.Exchange wrote in an announcement.
Important announcement from https://t.co/gavrewTi9F – check our latest blog post at: https://t.co/9PouPhpXCB
— DX.Exchange (@DXdotExchange) November 3, 2019
It continued: “The board believes this is the best opportunity for DX.Exchange to achieve success for its shareholders and compete in this challenging market. In the event a merger or sale is not completed in a timely manner, then the exchange may not resume operations and will take appropriate action.”
As of 12pm GMT today, trading will stop and deposits will be halted, but customers will still be able to withdraw funds once they reupload KYC documents and a wallet address.
The decision to shut down DX.Exchange demonstrates how little security tokens have been adopted compared to regular crypto tokens.
Many thought the impending STO boom would mimic the ICO boom that drove the cryptocurrency market in 2017, but unfortunately those expectations were well off the mark.
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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.