In what quickly becoming a norm, another cryptocurrency exchange from India, announced its plans to suspend services for its users, from next week.
Indian exchange, Coinome said, “All crypto markets on Coinome will be suspended, effective 2pm on May 15th, 2019. Customers are requested to withdraw all their crypto assets from Coinome at the earliest.”
All crypto markets on Coinome will be suspended, effective 2pm on May 15th, 2019. Customers are requested to withdraw all their crypto assets from Coinome at the earliest.
— Coinome (@CoinomeOfficial) May 9, 2019
While, the exchange has not provided a specific reason as to why it suddenly decided to suspend trading activities, it is not very hard to figure out. Like, we have reported on similar situations, it is very expensive to keep an exchange operational, given the regulatory uncertainties and no guarantee of revenue coming in.
The first exchange to shut shop was Zebpay. At the time, Ajeet Khurana, the Chief Executive Officer (CEO) of Zebpay had told us, “The Indian environment is highly non-conducive to the crypto business. Our revenue model is only through transaction fees. So by shutting the exchange, we have effectively made our revenue zero. Naturally no company would want to do that if it has a choice.”
Recently, when the news about Unocoin cutting down its staff by 86% got out, the CEO of the company Sathvik Vishwanath had told us, in regard to operation costs, “If you have a team of 30 with half of them being good tech guys, you are burning easily 35-40 lakhs per month.”
When we had asked about the possibility of more exchanges shutting down due to regulatory uncertainty, Vishwanath had said, “Depends on how long the uncertainty exists. For now, the exchanges are not self-sustaining in India, which means they are burining the fuel and figuring out.”
In March this year, Coindelta had also announced its plans of shutting down. In an emotional post, it had said, “It has been really difficult for us to operate Coindelta exchange for the last 6 months. The curb on the bank accounts by RBI has made us handicapped in order to provide seamless deposit and withdrawal services. There has not been any significant progress in the Supreme Court case which makes it difficult to predict when we will see the regulation.”
Liked what you read? Join us on Telegram