Nasdaq-powered DX.Exchange yesterday announced it is pausing its service while it tries to arrange a merger or sale of the company. The exchange, which launched in January, said that “The costs of providing the required level of security, support and technology is not economically feasible on our own.” If the exchange doesn’t manage to sell or merge the company, it may close its doors.
Following the announcement, the exchange suspended trading and prevented customers from depositing further funds on the exchange.
To withdraw funds, customers must email DX.Exchange with identification papers and addresses. Customers must also send a selfie, holding up a piece of paper on which today’s date, and the words “DX Exchange”, are written.
Withdrawal requests must be submitted by November 15, otherwise “the withdrawal process could be disrupted.” Trading and deposits could open again should a wealthy benefactor buy the exchange.
“The board appreciates your continued support and understanding in these difficult times and looks forward to the long-term success for DX.Exchange,” it wrote.
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Last month the exchange launched DXCASH, which opened for trading at $1.45. The price quickly dropped: by the afternoon of launch-day, the exchange tweeted that the price had sunk to $0.1, and volume had dropped significantly.
“We believe that most of the sellers are people who received DXCASH in last year airdrop or others selling just for the sake to sell,” wrote the exchange.
DX.Exchange is built on Nasdaq’s matching engine and market surveillance technology. It allowed for the tokenization of real world assets, like stocks in Apple, or ETFs.
It accomplished this due to regulation from the Estonian Financial Intelligence unit, which licensed it to exchange virtual currencies against fiat currencies.