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Coinexchange.io have announced that they will be shutting down operations effective October 15. According to an October 1 statement issued by the company, this is due solely to financial difficulties and not as part of any security breach or other similar incidents.
In a statement, the company reported, “Unfortunately it is no longer economically viable for us to continue offering market services. The costs of providing the required level of security and support now outweigh our earnings.”
On October 15, all trading and deposits on the exchange will be suspended. Traders are already being told that they should cease all activities as soon as possible. All withdrawals from the site will remain operational until December 1. That will be the absolute limit where clients will still be able to remove all remaining funds. The statement continued:
It has been a fantastic journey and we have enjoyed playing a part in the cryptocurrency space. We thank everyone that has traded or listed currency with us. So, sadly, it is goodbye for now however we may return in the future if market conditions change.
It is those market conditions that have many exchanges hanging on. The closure of this exchange comes at one of the most challenging times for the industry. Despite some tough times this year, there is great speculation that all-time highs are on the horizon.
Some exchanges are finding that it is difficult to hold out for those opportunities though. This is already deemed as one of the most volatile industries, and smaller exchanges, such as Coinexchange.io, are clearly not able to continue to compete in hopes that the market will increase greatly.
Several other exchanges have faced the same fate as Coinexchange.io. The Malta-based platform Coinone Global Exchange recently announced that they terminated services. This occurred in mid-September.
Also in September, the leading cryptocurrency exchange in Thailand, Bitcoin Co. Ltd. also announced that they would not be seeking to renew their digital asset exchange license from securities regulators in 2020. That will mean that they will soon be ceasing operations as well.
If cryptocurrencies don’t start rising in value soon this may be the tip of the iceberg for this industry. A rising value in digital currencies will mean more players getting into the market. That increases the success of these exchanges because more people are in need of their services. It is hoped that will change soon.
New to blockchain? Check out CoinGeek’s Blockchain for Beginners section, the ultimate resource guide to learn more about blockchain technology.
