Crypto exchange DX.Exchange, which is licensed by the Estonian Financial Intelligence Unit, has announced that its directors have decided to "temporarily close the exchange" as the exchange looks to become a target for a merger or an acquisition.
DX.Exchange, which is "Built on Nasdaq’s matching engine and market surveillance technology", launched trading on 7 January 2019.
Yesterday (November 3), the exchange made an important announcement on its blog. It seem that Dx.Exchange is looking for a buyer.
According to Andy Shawber and Laura Harper, two corporate law practitioners at Seattle's Summit Law Group, there are three ways to acquire a business:
1) asset purchase, 2) stock purchase (or membership unit purchase in the case of a limited liability company), or 3) a merger. All three of these structures are different types of acquisitions.
In its blog post, DX.Exchange says that the "costs of providing the required level of security, support and technology" is more than they can handle on their own. The Board of Directors feels that finding a buyer is the best chance they have for being able to "compete in this challenging market."
So, although DX.Exchange says this is a temporary closure, sadly, it may become a permanent one if the "a merger or sell is not completed" in the near future.
Therefore, DX.Exchange stopped accepting more deposits and suspended trading on November 3. The exchange also wants its users to know that all client funds are safe and will need to be returned before the directors go ahead with any potential merger/sale.
Withdrawal requests will be "processed as soon as possible," and all withdrawal requests "must be submitted by November 15th, 2019 or the withdrawal process could be disrupted."
Featured Image Courtesy of DX.Exchange