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EQONEX is the latest to leave the crowded” crypto exchange space
Falling trading volumes as a result of market volatility is one reason for the exchange's closure, says Jonathan Farnell, CEO of EQONEX The company added former Jefferies and Royal Bank of Scotland executives to its asset management business last month EQONEX is the latest crypto exchange to close its doors amid difficult market conditions. The digital asset-focused financial services company said Monday it is shifting its focus to its asset management and cryptocurrency custody businesses. The company said a new structured products business is also in the works. The Nasdaq-listed company's stock exchange is scheduled to begin trading on March 22...
EQONEX is the latest to leave the crowded” crypto exchange space
- Sinkende Handelsvolumina als Folge der Marktvolatilität seien ein Grund für die Schließung der Börse, sagt Jonathan Farnell, CEO von EQONEX
- Das Unternehmen hat im vergangenen Monat ehemalige Führungskräfte von Jefferies und der Royal Bank of Scotland in sein Vermögensverwaltungsgeschäft aufgenommen
EQONEX is the latest crypto exchange to close its doors amid difficult market conditions.
The digital asset-focused financial services company said Monday it is shifting its focus to the asset management and cryptocurrency custody businesses. The company said a new structured products business is also in the works.
The Nasdaq-listed company's exchange is scheduled to close trading on August 22 and halt withdrawals on September 14.
Closing the exchange will reduce operating costs and allow the company to grow where it has greater competitive strengths, CEO Jonathan Farnell said in a statement.
Farnell called the crypto exchange space “crowded,” adding that the industry has nearly 300 spot exchanges.
“Recent extreme market volatility and trading volumes have added to the headwinds being felt by exchange operators,” Farnell said. “We anticipate that our exchange will not move the needle for us financially in the short to medium term.”
Coinbase, for example, reported a net loss of $1.1 billion in the second quarter as net revenue fell 31% quarter-over-quarter. The publicly traded exchange's total quarterly trading volume was $217 billion, down about 30% from the previous quarter, which the exchange attributed to market conditions in its environment Letter to shareholders.
An EQONEX spokesman did not immediately respond to a request for comment.
Focus on structured products
EQONEX's asset management business includes investment products, structured products, a fund of crypto hedge funds and a credit department. The company started an exchange-traded Bitcoin note on Deutsche Börse's XETRA exchange last month.
Digivault, the group's digital asset custody business, is registered with the UK's Financial Conduct Authority and recently became the first Stablecoin custody partner poundtoken.io.
EQONEX's headquarters will be relocated from Hong Kong to the UK as its asset management and custody activities are primarily based in the latter region.
In addition to focusing on asset management and custody business, EQONEX is laying the foundation for a structured products unit to provide professional investors and institutions with access to tailored crypto assets.
The move follows the company's discontinuation Nick Cogwell last month as sales manager for the wealth management business and Franklin Heng as head of asset management in Asia.
Cogswell previously worked in structured equity sales at Jefferies and held senior positions at Santander and Lehman Brothers. Heng joins EQONEX after spending 11 years at Springboard Capital and previously working as head of equity derivatives and structured products sales for the Royal Bank of Scotland.
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The post EQONEX Latest To Leave 'Crowded' Crypto Exchange Space is not financial advice.