Hong Kong-based cryptocurrency startup Melotic has announced that it is shutting down its digital asset exchange, citing a lack of sufficient growth.
According to the post, users will have until 15th May to withdraw their balances, and deposits. After 15th May, the exchange will be shut off.
Melotic said that it intends to continue operating with an as-yet undisclosed new service or product, asking users to "stay tuned for what we have in store". The post noted that resources previously used to support the digital asset exchange will be redirected to those efforts.
When reached for comment, a spokesperson for Melotic echoed the blog post, emphasizing that the platform is solvent and that the company has sufficient capital to pivot away from the digital asset exchange and toward new product initiatives.
The representative said:
The planned shutdown comes months after the company raised new capital to help support its exchange efforts. Melotic closed $1.17m in seed funding last October, drawing support from Ceyuan Ventures, Bitcoin Opportunity Corp and 500 Startups.
Melotic is the latest cryptocurrency exchange to close its doors in 2015, adding its name to a list that includes UK-based Netagio.
Image via Shutterstock
Correction: An earlier version of this article incorrectly stated that Canadian bitcoin exchange Cavirtex had officially closed.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.