Zug-based blockchain company trade.io, on Tuesday announced the suspension of all trading activities on its crypto exchange platform.
The decision was made due to the poor condition of the cryptocurrency markets. However, the firm assured that the move is only temporary.
“Trade.io is not going out of business. The crypto exchange will be archived securely and pending the financial opportunity will be reopened at a future date,” the announcement stated.
The exchange cited three key reasons – fake volumes, scam projects, and the vast unregulated crypto environment; a massive marketing budget; and increasing infrastructure cost – which forced it to take the harsh decision.
“This is purely a profit and loss decision. Despite the success of our re-launch, it has become clear to us that in current market conditions the exchange is a long way from turning a profit. Profits (and losses) directly affect the LP payouts,” the exchange added.
2020 Global Market Outlook: How the “Known Unknowns” Can Affect CurrenciesGo to article >>
“By removing the costs of the exchange we will increase the profitability of the trade.io group of companies and as such increase the LP payouts over time which should drive the price of TIOx.”
Closing all channels despite re-opening assurance
Though the platform is suspending all activities on the platform on October 28, it will continue to process withdrawals until October 31. After the deadline, the Liquidity Pool will continue to operate with only TIOmarkets.
The exchange also detailed that its TIOx token will be listed on the IDAX, Mercatox, and ABCC exchanges and will remain the key to accessing its liquidity pool.
“Starting Monday November 4th, all future LP distributions will occur on the TIOmarkets platform and will be paid to your TIOmarkets MT5 trading accounts. Payouts are expected to remain in ETH,” the announcement added.
It, however, urged TIOx holders whose tokens are not locked into the liquidity pool to either withdraw the tokens to a private wallet or lock them into the LP in TIO Markets.
“Once your TIOmarkets account is registered and your KYC is approved you will be able to deposit your TIOx to TIO markets and lock it into the LP from your TIOmarkets Portal/Members Area,” Trade.io noted.