Eqonex, Nasdaq-Listed Crypto Firm, Partly Shuts Down Operations

Eqonex, a Nasdaq-listed crypto firm, shuts down operations in its virtual currency exchange business, citing excessive competition. In a statement, the firm disclosed that it would stop issuing crypto trading services on August 22. However, those with funds on the exchange have until September 14 to get them out.

Eqonex revealed that the move is part of its plan to focus on operations likely to generate more revenue while positioning the firm for “financial stability” in the long term. Such procedures include digital asset custody and management.

Jonathan Farnell, the company’s CEO, said that exiting the crypto trading business will help the company narrow its focus and simplify its business. He added that the move would also help “free up resources,” allowing the firm to operate more efficiently. In turn, it’ll enable the company to concentrate on “market segments” likely to generate higher yields. According to Farnell, the exchange arm isn’t financially viable in the “near-to-medium term.”

As such, Eqonex doesn’t see the need to continue operating the exchange business during perceived long bear market conditions. Apart from exiting the virtual currency trading scene, its exchange native token, EQO, will also stop trading to mark its complete exit from the crypto trading arena.

The firm will also relocate most of its operations to the United Kingdom. Since its launch, the firm has passed through the hands of two CEOs, with Farnell being the third. Farnell took over Eqonex’s leadership in March this year.

The CEO previously worked at eToro, the world’s leading cryptocurrency exchange by trading volume, Binance. In 2021, the company’s board discussed a merger possibility before the bears took over cryptocurrency prices. Earlier this year, Bifinity, a Binance affiliate, disclosed that it’s ready to loan Eqonex 36 million USD to help boost Eqonex’s Digivault, a virtual asset custody service.