DX.Exchange Platform Shuts Down Less Than A Year From Launch

DX.Exchange, a Nasdaq-powered cryptocurrency and tokenized securities trading platform, has announced its closure just 9 months after its launch in January. According to the announcement, the company cited financial hardships as the main reason for its decision.

On November 3rd, the Estonia-based platform announced via a blog post about its imminent shutdown. However, the blog post notes that the shutdown is only temporary, as the remaining members are looking for an acquisition or a merger to continue running.

The blog post reads the following:

“We must inform the community that the board of directors of DX.Exchange has decided to temporarily close the exchange as we pursue a merger or outright sell of the company. […] The costs of providing the required level of security, support and technology is not economically feasible on our own.”

Upon the announcement, the exchange suspended trading on the platform as well as blocked all deposits. In addition to that, all open orders had been canceled at 12:00 GMT on Sunday. The exchange further asked users to withdraw their funds by November 15th in order to allow a merger/sale to proceed.

For the withdrawal process, the exchange requires that users email its support team with a copy of their government ID used for the initial signup, the wallet address and the amount for each asset they are withdrawing, as well as a selfie with a paper with the date and the words DX Exchange. Users are required to use the same email they set up the account with.

Meanwhile, if a merger or acquisition does not happen soon enough, then the exchange will stop operations permanently, according to the announcement. However, the exchange remains hopeful as it wants to achieve “success for its shareholders and compete in this challenging market.”

With the shutdown announcement, it remains unclear what will happen to the platform’s staff, which ranges between 51-200 employees, according to LinkedIn. The firm has yet to comment on the matter.

DX.Exchange launched its platform in January of this year, and offered trading in cryptocurrencies as well as tokenized securities such as stocks of Tesla and Apple and exchange-traded funds or ETFs like Invesco QQQ and SPDR S&P 500.

Noteworthy, DX.Exchange was the first cryptocurrency trading platform to be built with Nasdaq trading technology in combination with the exchange’s in-house tech, making it a potential powerhouse.