CoinEx Shutdown Highlights Challenges Facing Smaller Crypto Exchanges
Binance CEO Changpeng 'CZ' Zhao has weighed in on CoinEx's decision to shut down its operations, citing declining industry trading volume and liquidity as key reasons. The exchange will close its doors after nine years of operation, with stages of the shutdown starting on September 15 and ending on December 22.
CoinEx has reassured users that their assets are fully backed and accessible for withdrawal, maintaining an asset reserve ratio above 100%. Withdrawals can still be made through December 22. The exchange will also repurchase any remaining CET balances at a rate of 0.005 $USDT per token.
CZ drew attention to the distinction between insolvency and business failure, noting that even with sufficient assets to reimburse customers, exchanges may become economically unsustainable. He contrasted CoinEx's orderly shutdown with the catastrophic collapse of QuadrigaCX, where clients were unable to access their funds after its founder passed away.