Crypto exchange, Coinexchange.io made a public announcement on Tuesday 1st of October that it was closing down operations in Dec., 2019.
CoinExchange.io Cites Budget Concerns
As per the official announcement, the crypto exchange cited reasons along the lines of budget required to maintain the platform’s security and support which has outweighed their earnings.
Also, the exchanged maintained that no security breach, cyber attack or any other similar kind of incidences had occurred.
It is with great regret that we must inform the community that the board of directors of CoinExchange.io has decided to close down the exchange.
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 costs of providing the required level of security and support now outweigh our earnings.
Further explaining the process of platform closure, the exchange maintained that trading and deposits options shall be suspended on the 15th of October, 2019.
However, the exchange requested all customers to make withdrawals of their funds within now and 1st of December.
More Exchanges Trailing The Bankruptcy Path
CoinExchange.io has made an example of the many crypto exchanges recently reported by FX Street to be susceptible to bankruptcy due to low trading volumes.
As this news of exchange closure fits perfectly with the prediction, it is now probable that other relatively smaller exchanges, especially South Korean based crypto exchanges might be taking the bankruptcy turn sooner than expected.
Coinexchange.io is a moderate crypto exchange which has managed to keep its head above waters in the crypto ecosystem. As a platform offering crypto to crypto exchange, it boasts of security measures which have kept it from being hacked until now.
However, the cost of maintaining such security consciousness and standards has proven difficult to achieve due to the crypto winter that has generally hit the crypto markets. Although the exchange left a clause that it may resume operations when market conditions get better, the certainty of such report remain very low.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Staff writer at Coingape. Certified cryptocurrency expert and Blockchain journalist covering crypto market analysis and general Blockchain adoption and development.
You can follow me on Twitter at @ShonubiDare or reach out to me at dare[at]coingape.com