EQONEX Announces Plan to Exit Crypto Exchange Space

Monday, 15/08/2022 | 11:27 GMT by Bilal Jafar
  • The company is planning to focus on asset management and custody businesses.
  • EQONEX aims to launch the structured products business in the near future.
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Nasdaq-listed EQONEX announced today that the company is planning to exit the ‘crowded’ crypto exchange space. EQONEX is shutting down the exchange to focus on other key business segments.

According to an official announcement shared by the company, EQONEX aims to focus on asset management and custody. The Nasdaq-listed firm noted that the closure of the exchange will improve its financial position and free up some key resources to drive the company’s growth.

EQONEX’s CEO, Jonathan Farnell said: “We are focused on opportunities that will drive revenue growth and position us for long-term success. Closing the Exchange will significantly simplify our business, narrow our focus, free up resources and allow us to operate as a more efficient organization with the capacity to aggressively go after market segments that offer the most potential.”

“The recent extreme market volatility and declining trading volumes have added to the headwinds being felt by exchange operators. We take a realistic view that our exchange will not move the needle for us financially over the near-to-medium term. We don’t see value in continuing to bear the costs of operating an exchange during what may be a prolonged market downturn. We have the conviction that proactively exiting the crowded exchange space is the right decision to deliver shareholder value,” Farnell added.

Crypto Asset Management

Despite the latest market dip, digital asset management companies around the world have remained resilient in the past few months. Some of the players in the crypto asset management and custody ecosystem have witnessed rapid growth in 2022.

“Our Asset Management and Custody business, Digivault, have already made solid progress with the additional resources that we have allocated to them recently, and we are bullish about their prospects as we become an organization focused on these high-potential business areas,” the CEO of EQONEX highlighted.

In May 2022, EQONEX selected Paul Ewing as Chief Operating Officer.

Nasdaq-listed EQONEX announced today that the company is planning to exit the ‘crowded’ crypto exchange space. EQONEX is shutting down the exchange to focus on other key business segments.

According to an official announcement shared by the company, EQONEX aims to focus on asset management and custody. The Nasdaq-listed firm noted that the closure of the exchange will improve its financial position and free up some key resources to drive the company’s growth.

EQONEX’s CEO, Jonathan Farnell said: “We are focused on opportunities that will drive revenue growth and position us for long-term success. Closing the Exchange will significantly simplify our business, narrow our focus, free up resources and allow us to operate as a more efficient organization with the capacity to aggressively go after market segments that offer the most potential.”

“The recent extreme market volatility and declining trading volumes have added to the headwinds being felt by exchange operators. We take a realistic view that our exchange will not move the needle for us financially over the near-to-medium term. We don’t see value in continuing to bear the costs of operating an exchange during what may be a prolonged market downturn. We have the conviction that proactively exiting the crowded exchange space is the right decision to deliver shareholder value,” Farnell added.

Crypto Asset Management

Despite the latest market dip, digital asset management companies around the world have remained resilient in the past few months. Some of the players in the crypto asset management and custody ecosystem have witnessed rapid growth in 2022.

“Our Asset Management and Custody business, Digivault, have already made solid progress with the additional resources that we have allocated to them recently, and we are bullish about their prospects as we become an organization focused on these high-potential business areas,” the CEO of EQONEX highlighted.

In May 2022, EQONEX selected Paul Ewing as Chief Operating Officer.

About the Author: Bilal Jafar
Bilal Jafar
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About the Author: Bilal Jafar
Bilal Jafar holds an MBA in Finance. In a professional career of more than 8 years, Jafar covered the evolution of FX, Cryptocurrencies, and Fintech. He started his career as a financial markets analyst and worked in different positions in the global media sector. Jafar writes about diverse topics within FX, Crypto, and the financial technology market.
  • 2440 Articles
  • 87 Followers

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