How BlockEx Had to Layoff Within a Year

BlockEx’s treasury box had been getting hit by the market conditions in 2018, and the exchange had to take steps to survive in the market, an a few of them are layoffs, scaled back objectives and delays. The CEO of the exchange confirmed the news of layoffs with the media.

He further said that the exchange has to do it first, as the products are finished and second, the exchange has to control the heat. He made it a point to state that the exchange is not getting closed totally, it is hoping good news by the next week. He informed that the exchange is making efforts to undertake a new round of fundraising.

The company first introduced BlockEx as a platform to issue tokens, but the company planned to take it ahead and offer to allow to trade the tokens it issues. The company estimated it to be easy to market with a securities token issuer, especially those who are backed by a European Union regulator. BlockEx conducted its own token sale a year ago for the DAXT token.

The inconvenience, the organization accepts, was that it demanded strict adherence to KYC/AML procedures. The costs on ETH came down drastically since the beginning of its deal toward the end of December 2017 till last year end.

Further, the organization decided not to conclude any deal until the point that a purchaser had gotten DAXT in return for their ETH. In this way, if the purchaser saw ETH plunging and asked for them, the company would release them.

Many remained in the system, yet when BlockEx got its hands on assets after all the KYC/AML checks, it had lost significant worth. Leonard informed that though the company was able to raise £20 million raise, the company, in reality, was left with just £5.5 million of assets. Had market been running well, even the actual amount of £5.5 million would be enough.

The downfall started somewhere here. With ICOs solidifying up, there weren’t new contributions on the stage to make. This cut into income and the estimation of the DAXT token. Apart from this, BlockEx was expecting an $8 million in funds from one asset set up, which never came through.

Because of these losses, BlockEx wound up not coming through on various activities for 2018. BlockEx saw drawbacks in its capacity to set up white-label business services for value shops rapidly. It additionally has needed to postpone a general review highlight for the BlockEx trade.

The plan of BlockEx was for various evaluating firms to run regular reviews, Leonard stated, so clients and brokers could never have any uncertainty the assets were there. The company wanted to make it transparent and open that the trade had brokers’ money.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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