Any crypto enthusiast knows that March has been a busy month for BTC. The Price fell to new lows and the rose, then it kept fluctuating from then on. At some point, it was impossible to predict the next day’s price. The coronavirus pandemic has indeed made these days quite uncertain and scary for all of us but especially for investors.
Several businesses have closed because they ran out of money. Malicious bloggers have also taken this chance to write fake news about strong businesses falling, only for such businesses to deny such claims. Fake news has become the order of the day, it is therefore only natural that you wouldn’t believe everything you hear, including the closure of the XDEX.
So is it true?
Yes, on the 31st of March 2020 the Brazilian exchange XDEX which is owned by the largest stocks broker in Latin America announced its full closure and end of activities. XDEX was launched in 2018. It attempted to capitalize on the possible entry of Brazilian institutional investors into crypto.
Since the platform was owned by the partners of XP investors. Which is one of the largest brokers in Latin America, managing Billions in investments.
They claimed that market projection, competition, and few regulatory advances reduced the opportunities that were found at the beginning of the propjet. These are the main factors that led to the company making the difficult decision of the closure.
The Notice To Customers
The company has offered a non-custodial exposure to cryptocurrencies, so customers have up to 30 days from yesterday, which is essentially the whole of April, to close their positions and withdraw their balance from the exchange. the funds will be sent to the bank account registered at XDEX within 1 day after the withdrawal requested.
After these 30 days, the company will sell assets on behalf of any customers who will be yet to sell their assets. And the amount will be deposited in the bank account register with XDEX within 3 business days.
Can you imagine that this is the 4th Bitcoin-focused company that closes its activities in Brazil after Omni-Trade, Latex and Acesso Bitcoin? At the end of last year, another Brazilian company called Bitcoin announced closure.
There is a trend going on here, I don’t know if you realize it. Let’s wait and see if there are going to be any more closures in Brazil and the rest of the world.