CoinExchange, the alt coin exchange that launched in 2016, has been forced to close its doors after more than three and a half years in the game, blaming the downturn in the crypto markets for the closure. The announcement, made Tuesday, sees CoinExchange join the likes of Liqui, Bitcoin Co. Ltd, and CGEX in falling victim to the collapse of the crypto markets.
— CoinExchange.io (@coinexchange_io) October 1, 2019
Reduced Trading Volume Leaves Little Room for Manoeuvre
CoinExchange stated that the decision to close was “purely a business decision”, which is no surprise given the decline in smaller alt coin trading volumes in particular, which were CoinExchange’s bread and butter, and has led to other less scrupulous exchanges faking trading volume. Despite offering over 500 markets, most of the coins were much smaller projects with little interest outside the core followers, making it difficult to attract higher volume. According to CoinMarektCap, CoinExchange’s recent 24-hour trading volume has only been around the $350,000 mark; given their 0.15% trading fees, this means that CoinExchange has only been making $500-550 per day in revenue in recent weeks, with the result that “the costs of providing the required level of security and support now outweigh our earnings.”
Trading to Cease on October 15
CoinExchange’s last day of trading will be October 14, with trading and depositing suspended the following day, although withdrawals will continue until December 1. Having been one of the longer-established exchanges, CoinExchange has built up a legion of fans, many of whom were disappointed at the news:
Shame to see you’re leaving! Thanks for many years of being an awesome exchange!!
— crypt0biwan (@crypt0biwan) October 1, 2019
I love this exchange seriously
the first one that I used
Really sad ? thanks for everything & best of luck
— Crypto Man (@DzayerCrypto27) October 1, 2019
Thanks for being a part of the crypto community! We will remember you ❤️
— We Shop with Crypto (@WeShopCrypto) October 1, 2019
Many projects will be disheartened at losing possibly their biggest, or even their only, exchange, but perhaps none more so that Molecular Future (MOF) who were only listed on the exchange last Thursday, having presumably paid a fee to do so. Then again, as a wise man once said, that’s just the way the crypto crumbles.