DX.Exchange Halts Operations, Seeks Buyer 10 Months After Launch
The firm, which offered tokenized shares in companies listed on the Nasdaq stock exchange, may not reopen.
DX.Exchange is hitting pause as it seeks a new owner.
The firm, which offered tokenized shares in companies listed on the Nasdaq stock exchange, announced the move following a vote by its board on Monday to discontinue operations as it pursues "a merger or outright sell of the company."
Should a buyer not be found, "the exchange may not resume operations," the company wrote. Deposits have been suspended and customers have until Nov. 15 to withdraw funds.
“The costs of providing the required level of security, support and technology is not economically feasible on our own,” the firm said in the announcement.
During its January 2019 launch, customers could buy tokenized shares in Google parent company Alphabet, Apple, Amazon.com, Facebook, Microsoft, Tesla, Netflix, Baidu, Intel Corporation and Nvidia.
DX.Exchange's temporary closure comes on the heels of Circle's spin-off of Poloniex two years after the fintech firm purchased the exchange for $400 million. Circle co-founders Jeremy Allaire and Sean Neville said they plan on shifting focus towards its USDC stablecoin and SeedInvest crowdfunding platform. An undisclosed Asia-based investment group, Polo Digital Assets, Ltd., purchased the exchange.
Nasdaq image via Shutterstock
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