In what could be considered a rare development in the crypto industry, altcoin exchange platform Coinexchange.io announced Tuesday that it would shut down in the coming weeks because of financial reasons.
In an Oct 1 announcement, Coinexchange.io sought to clarify that their decision to go out of business is not in any linked to a security breach or any other incidents that have forced crypto exchanges out of the market in recent times.
Despite seeing daily trading volumes estimated at around $500,000 by Coinmarketcap, and offering support for some 500 altcoins, Coinexchange.io said in yesterday’s announcement:
“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.”
Following the revelation, users of the altcoin-focused exchange can still leave their crypto assets on the platform until December 1, when the platform will entirely stop functioning or stop processing withdrawals. However, the exchange is scheduled to pause trading and deposits as soon as Oct 15, in preparation for its demise, which may be revoked in the future if market conditions change for the better.
As mentioned earlier, Coinexchange.io’s decision to stop operations for financial reasons is rare development for the industry which has seen crypto exchanges exit the market for different kind of reasons.
For instance, Stmarket.co reported in June that India-based exchange, Koinex shut down operations because of the regulatory uncertainty facing the country’s crypto ecosystem.
Canada-based QuadrigaCX, on the other hand, ceased operations following the death of its founder, Gerald Colten who supposedly was the only person in possession of the private keys for customer funds.
Another crypto exchange, New Zealand-based Cryptopia went offline following a series of hacks that saw the exchange lose millions of dollars which the operators were unable to replace for customers.