Digital assets investment company Eqonex, has announced the stoppage of its activities and exit of the crypto exchange industry.
Eqonex announced on Monday that it would stop trading on its cryptocurrency exchange on August 22 and permit users to withdraw money up until September 14.
The company said that the closure was a result of a drive to streamline operations, which was aimed at providing “the highest potential for revenue growth and long-term financial sustainability,” including its asset management and custody services at Digivault.
According to Jonathan Farnell, CEO of Eqonex, “closing the exchange will considerably simplify our business, concentrate our focus, free up resources, and allow us to function as a more efficient organization with the ability to aggressively go after market sectors that offer the most potential.”
We take a realistic stance that, in the short- to medium-term, our transaction won’t significantly affect our financial situation. We don’t think it is worthwhile to keep covering an exchange’s operating expenses during what may be a protracted market downturn.
The exchange announced the change in policy by announcing that its EQO coin “would halt trading with immediate effect.” Eqonex said that it would relocate its main operations as well as a number of management personnel from Hong Kong to the UK, where the majority of Digivault’s operations were housed.
Eqonex was established in May 2020, and its CEO from 2018 to 2021, Richard Byworth, oversaw the exchange’s launch. From December 2021, interim CEO Andrew Eldon assumed control of the company. Farnell, who has previously worked at eToro and Binance, took over the company’s operations in March.
The Eqonex board of directors claimed in December 2021 that they had explored “merger or acquisition ideas” before much of the high volatility and market slump in May.
Bifinity, the payment division of Binance, said in March that it would give Eqonex a $36 million convertible loan in order to expand the company’s product line, with a particular emphasis on Digivault’s digital custody services.
Shares of Eqonex were down about 1.75% over the previous day at $0.79 at the time of writing.
