Damola is a crypto enthusiast, marketer, and writer who is seeking to achieve career excellence through positive contribution to the organization that aspires for excellence.
DX.Exchange, the Nasdaq-powered digital trading platform, is temporarily shutting down as the operational costs have become too high.
Exactly nine months after opening its doors for business, DX.Exchange, a trading platform powered by Nasdaq, has thrown in the towel due to financial difficulties. Currently, the platform is looking for a buyer or better still a merger.
The news was released via an announcement on Nov. 3, telling the world that the cost of operating the platform in the aspects of security, support and technology is too much to bear.
Good Intention, Bad Execution
The original idea for DX.Exchange was to become a financial powerhouse, which led to the level of technology and manpower adopted for its creation. The exchange was designed with Nasdaq technology and continued to receive support from it but sadly all this wasn’t enough.
DX.Exchange came into existence sometime in mid-2018 with plans to launch by the third quarter of 2018. This failed to happen and the launch event was pushed ahead to January 2019 when it eventually happened.
Now, DX.Exchange has become yet another tale of failure in the crypto industry. This appears to be a rough season for some crypto companies aside DX.Exchange. BitMEX Twitter account was hit by hackers leading to a data dump on its platform. Also, FTX exchange is facing a $150 million “nuisance suit.”
Time to Cut Losses
In the released statement, DX.Exchange informed users that all trading and deposits were being suspended with immediate effect and all open orders on the day of the announcement would be terminated by 12:00 GMT.
The platform has reassured clients that, despite the sudden action, all their funds are safe and should be collected as soon as possible so that any future plan for an acquisition or a merger will not be hindered.
The exchange has provided an easy way for users to claim their withdrawals and this is through a Know Your Customer (KYC) procedure which includes submitting a selfie, email details, government ID and a wallet address.
DX.Exchange has, however, warned that all withdrawal requests must be submitted on or before Nov. 15, else the withdrawal process may suffer disruption.
Brief Overview of DX.Exchange
DX.Exchange became the first exchange to launch tokenized exchange-traded funds, security token offering (STO) and security token trading.
For investors to participate in the above-mentioned products, they were required to undergo a more in-depth KYC scrutiny, in conformance with the European Union Markets in Financial Instruments Directive II.
Also, Nasdaq worked very closely with VanEck, a U.S.-based investment firm, to launch a series of digital asset products that are “regulated and surveilled.”