Nasdaq-listed digital asset investment firm Eqonex has announced it will be exiting the \u201ccrowded crypto exchange space\u201d by shuttering part of its operations.<\/p>\n
In a Monday announcement, Eqonex said it will close trading on its crypto exchange on Aug. 22 while users will be allowed to withdraw funds until Sept. 14. The firm said the closure was part of an effort to streamline operations that focused on offering \u201cthe most potential for revenue growth and long-term financial sustainability,\u201d which included its asset management and custody services at Digivault.<\/p>\n
\u201cClosing the exchange will significantly simplify our business, narrow our focus, free up resources, and allow us to operate as a more efficient organization with capacity to aggressively go after market segments that offer the most potential,\u201d said Eqonex CEO Jonathan Farnell. \u201cWe take a realistic view that our exchange will not move the needle for us financially over the near-to-medium term. We don\u2019t see value in continuing to bear the costs of operating an exchange during what may be a prolonged market downturn.\u201d <\/p>\n
The exchange said its EQO token \u201cwill cease trading with immediate effect\u201d as part of the shift in strategy. Eqonex added it would move its principal business and several people from management from Hong Kong to the United Kingdom, where many of Digivault\u2019s operations were based.<\/p>\n
Launched in May 2020, Eqonex has undergone a few changes in leadership, from Richard Byworth overseeing the start of the exchange during his time as CEO from 2018 to 2021 to interim CEO Andrew Eldon starting in December 2021. Farnell took over operations at the firm in March, having experience working at Binance and eToro.<\/p>\n