The US cryptoexchange Seed CX closed to focus on its settlement platform.
According to a company publication released on June 11 by CEO Edward Woodford, its Zero Hash settlement platform now accounts for 95% of the company’s revenue.
„As we begin to look beyond profitability to achieve our ambition of becoming the leading platform for digital asset liquidation, we need to focus more,“ Woodford wrote.
Seed CX subsidiary Zero Hash launches support for crypto derivatives
„Honestly, offering an exchange product directly to customers has sometimes been perceived as a conflict by some of our clients, but more importantly, it is secondary to our primary mission.
The CEO said the company will focus its efforts on its „efficient, automated and regulated settlement platform. The last day of trading on the cryptoexchange will be June 12.
Unable to compete
Seed CX made efforts to increase its market share in 2019 by reducing transaction fees to some of the lowest levels in the industry and partnering with several FinTech companies in Asia. However, the exchange only averaged about $6 million in daily trading volume and only made a small fraction of that in commissions charged.
Seed CX reduces trading commissions to gain market share
Expansion of settlement services
According to Cryptosoft, the company is working to become more profitable this year. Cointelegraph reported in September that Seed CX’s settlement agent had added support for derivatives transactions.
The CEO said the company intends to take more consistent steps toward profitability, citing a new round of fundraising from investors such as Bain Capital. The investment firm was responsible for raising $15 million in a Series B round for Seed CX in September 2018.