Coinexchange Closes, Citing “Financial Reasons”
The niche exchange suffered after interest in smaller altcoins faltered and volumes disappeared.
CoinExchange.io, one of the niche markets holding multiple less popular trading pairs, is closing down, citing financial reasons. The market operator was sometimes the last resort of projects that arrived too late on the scene and struggled to be accepted to larger exchanges. Coinexchange is also one of the last markets to use mostly Bitcoin (BTC), Dogecoin (DOGE) and Litecoin (LTC) as base pairs, instead of relying on stablecoins.
“This is purely a business decision and there has not been a security breach or any other type of incident. Unfortunately it is no longer economically viable for us to continue offering market services. The costs of providing the required level of security and support now outweigh our earnings,” the exchange’s team stated in its last message.
The market operator will keep the site open for withdrawals until December 1. The closing of Coinexchange mimics that of Nova Exchange, once closed for dwindling volumes on its whimsical selection of assets.
The market will keep trading until October 15, as it currently carries the equivalent of $369,025. Coinexchange is not the smallest market operator, but dwindling volumes overall have hurt its earnings and diminished liquidity. Trading has concentrated on larger markets, such as Binance and OKEx, while smaller exchanges may struggle with the new stricter requirements for customer screening.
The loss of Coinexchange will stop activity for 546 pairs, diminishing liquidity for Dogecoin and a handful of niche assets. Currently, Crypterium (CRPT) is the most active coin on the market, taking up 46.99% of all volumes.
Some of the Coinexchange projects may have to seek a new home with other competing exchanges. Listing opportunities are being offered. TradeSatoshi is one of the exchanges that has also hosted coins from the closed Novaexchange, and now prepares for listings coming in from projects on Coinexchange.
Unfortunately, the news of the closing caused traders to rush in and try to sell some of the most illiquid altcoins, crashing the prices.
Coinexchange exacerbates the loss of Cryptopia, which closed due to a hack. Thus, small-scale projects are almost doomed, losing all credibility and literally trending to zero.
In 2019, the bull market came only for the most liquid altcoins, but mostly for Bitcoin (BTC). Trading volumes overall diminished, with the smallest assets most affected. There is also the loss of trust in older altcoin projects, which already lost more than 95% of their value during the 2018 bear market.