Just nine months after its launch, the Nasdaq-powered digital trading platform DX.Exchange is temporarily shutting down as it pursues a merger or outright sale.
The Estonia-based platform made the announcement on Nov. 3, informing users that “the costs of providing the required level of security, support and technology is not economically feasible on our own.”
Users asked to promptly submit withdrawal requests
As reported, DX.Exchange — which uses Nasdaq’s matching engine and market surveillance technology — was launched in Jan. 2019, with support for various fiat and cryptocurrency trading pairs as well as tokenized stocks.
In its statement yesterday, the exchange told users that with immediate effect, all deposits and trading were being suspended, with all open orders to be cancelled by 12:00 GMT that same day.
While pledging to release further information in due course, DX.Exchange revealed that:
“The board [of directors] believes this is the best opportunity for DX.Exchange to achieve success for its shareholders and compete in this challenging market. In the event a merger or sell is not completed in a timely matter then the exchange may not resume operations and take appropriate action.’
In a bid to reassure clients faced with the abrupt move, the platform claimed that all user funds were safe and would need to be returned to allow for a merger or acquisition to go ahead.
For users to claim their withdrawals, the exchange outlined a Know Your Customer (KYC) procedure — involving submission of government ID, a selfie, wallet address and email details — for them to follow “as soon as possible.”
Users’ withdrawal requests must be submitted by Nov. 15, failing which the exchange has warned their withdrawal process could be disrupted.
The platform has thanked the public for its “support and understanding in these difficult times” and says it will notify users of the merger/acquisition progress.
DX.Exchange’s brief history
As reported, DX.Exchange had offered trading of tokenized stocks in major tech firms that included Amazon, Baidu, Apple, Facebook, Google, Intel, Microsoft, Netflix, Nvidia and Tesla.
This March, the exchange had claimed an alleged industry first with its launch of security token trading, security token offering (STO) listings and tokenized exchange-traded funds.
These products required investors to undergo an additional layer of KYC checks, in compliance with the European Union Markets in Financial Instruments Directive II.
Nasdaq has also previously partnered with United States-based investment firm VanEck to jointly launch a series of “regulated and surveilled” digital asset products.