Over the course of the past few years, plenty of new crypto exchanges have come up that catered to a niche market, and CoinExchange was one of the better-known ones among them. In a new development, the exchange announced that it has decided to close down the business. The company stated that it was being closed down due to financial reasons.
The exchange was known for offering some of the least popular trading pairs to traders and as such, had become quite well known. As a matter of fact, many crypto projects that had been late in raising money through initial coin offerings often went through a listing on this exchange.
It is interesting to note that CoinExchange had been one of the very few exchanges in the crypto ecosystem that did not rely on stablecoins in order to facilitate trades. Instead, the exchange offered to trade with Bitcoin and Litecoin, among others. The website will be operational until December 1 so that its users can make their withdrawals and migrate to another exchange.
That being said, trading will be continued on the platform only until October 15, since the exchange still holds $369,025 in the form of tokens. The plunging trading volumes have been the biggest reason behind the CoinExchange closing down altogether.
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In its statement, the company laid out the situation and made it clear that it is simply no longer a viable business. It stated, “This is purely a business decision and there has not been a security breach or any other type of incident. Unfortunately, it is no longer economically viable for us to continue offering market services.” The range of projects that had already listed on CoinExchange will now need to get a hold of new exchanges that will take them. It remains to be seen how the whole thing works out over the coming weeks.
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