Coinone Launched Exchange To Close Less Than Year After Release
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The CGEX cryptocurrency exchange based in Malta has just closed down less than a year after it was launched by South Korea’s Coinone in October in 2018.
Well, the exchange hasn’t closed down just yet but it only has a few weeks left until it ceases its operations for good.
Earlier this month, an announcement was posted that said the exchange would close down on the 18th September at 2:50 UTC. it’s worth noting that this exchange is the third biggest one in South Korea.
After this, users will be unable to access their accounts. Deposits and withdrawals will also no longer be possible.
CGEX announced the news after the exchange temporarily suspended trading and deposits on July 17th.
In the post, it stated:
“To prepare for a new paradigm change in cryptocurrency exchanges, CGEX is preparing a new trading platform… The New CGEX will be introduced during the third quarter of 2019.”
The exchange opened on 28th October last year and since then, the exchange offered cryptocurrency-to-cryptocurrency trading which was implemented into Coinone’s activity in South Korea and Indonesia.
But unfortunately, it wasn’t enough to keep CGEX going.
A recently published report from Business Korea has even stated that South Korean projects are flooding into foreign exchanges due to the tougher cryptocurrency exchange market conditions.
“The number of South Korean companies listing their early-stage blockchain projects on foreign exchanges is steadily increasing, industry watchers said on Aug. 18. Medibloc and Temco, which have already listed their blockchain projects on South Korea’s major exchanges are seeking to list their projects listed again on overseas exchanges, including those in the United States and Singapore.”
These low transaction volumes are behind the firm’s decisions to avoid listing on domestic exchanges.