Altcoin trading platform CoinExchange.io has announced it’s shutting its doors due to financial issues. It will remain operational until December 1, 2019.
Costs Outweigh Earnings
A post published on the exchange’s website yesterday states that the decision to shut up shop was purely business-related and not the result of a “security breach or any other type of incident.”
Unfortunately it is no longer economically viable for us to continue offering market services, the platform said. The costs of providing the required level of security and support now outweigh our earnings.
As a result of its decision, trading and deposits will cease on October 15. The website and withdrawals will remain in operation until December 1, 2019. However, CoinExchange has asked that its users remove all funds by this date. With market conditions as they currently are, the company said that it will return in the future if the industry improves.
It has been a fantastic journey and we have enjoyed playing a part in the crypto currency space, it added.
Posting an announcement on its Twitter page regarding its decision, many spoke of the positive experience they had with it.
We regret to inform our community that https://t.co/9Rg5khUo5M is closing down. For full details please read the following announcement https://t.co/ilvDdYuBfP
— CoinExchange.io (@coinexchange_io) October 1, 2019
Twitter user Turbo simply said that the bear market had claimed another victim. Another said it was a shame the platform was leaving.
Crypto Exchange Closures
The decision by CoinExchange to shut its doors is the latest in a long line of previous closures this year.
In June, Indian crypto exchange Koinex revealed that it was ceasing operations due to regulatory pressure. This followed on from an announcement in May that Coinome, another Indian crypto platform, was halting operations as a result of regulatory uncertainty in the country.
The decision by both came amid a government proposal to introduce a 10-year jail sentence on Indian citizens using cryptocurrency.
Elsewhere, in July, Polish crypto exchange Bitmarket shut down with little warning to users. A short message on its website simply stated that due to a “loss of liquidity” it was ceasing operations.
More recently Thailand’s regulated BX crypto exchange announced that it was discontinuing its digital asset services at the end of September. According to a report, the platform offered little explanation for its decision to stop operating, other than it was “focusing on other business opportunities.”
What do you think of CoinExchange’s business decision to close its doors? Do you think it will return if market conditions improve? Let us know your thoughts in the comments below.
Images via Shutterstock, Twitter @CoinExchange.io