Clients Are Recommended to Withdraw Their Funds
Running a cryptocurrency exchange seems to be a complex business. Some exchanges have been hacked leading to their closure as with Mt.Gox and Cryptopia, others closed their gates without much of an explanation. This seems to be the case with European cryptocurrency exchange DX.Exchange.
In a surprise announcement on their website, DX.Exchange notified clients that they are temporarily closing their operations.
In the announcement, DX have stated that they are temporarily shutting down all operations. This means that deposits are no longer allowed, and trading will be suspended. Any & all open orders will be closed.
Apparently, DX's closing has nothing to do with a hack and they have emphasized that client funds are safe. The only caveat is that funds must be withdrawn by November 14th 2019, or they might be lost.
The official reason for DX's closing is that their operational costs are too high and not "economically feasible".
This could possibly be interpreted as a way of DX saying that trading volume was too low. It is also possibly worth mentioning that DX doesn't seem to be listed on coinmarketcap as an exchange.
Despite being a European regulated exchange, DX launched roughly a year and a half ago. It seems that bad timing could explain why DX didn't manage to break into public consciousness. This was when Bitcoin & most cryptocurrencies' price and trading volume was lower.
Will DX Rise Again?
As part of their post, DX repeatedly emphasized that this was a temporary closure. They have al;so stated that they are seeking a merger or outright purchase. Should this actually come to fruition, we could hypothetically see DX re-launch.
Despite these sparks of hope, fans and clients should withdraw their funds as soon as possible.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado