Smaller Crypto Exchanges Face Squeeze as CoinEx Shuts Down

CoinEx, a smaller cryptocurrency exchange, is shutting down its centralized platform due to economic unviability. The exchange's founder, Haipo Yang, stated that continuing to operate would no longer make sense given the increased costs and liabilities associated with custody, security, and regulatory compliance.

The wind-down process will be completed by December 22, allowing users several months to close positions and remove assets. CoinEx has also announced a buyback of its CET tokens at their original listing price of 0.005 USDT per token.

The exchange's closure highlights the challenges faced by smaller centralized exchanges (CEXs) in the crypto market. With revenues weakened and costs remaining high, these platforms struggle to remain profitable. In contrast, larger CEXs benefit from deeper liquidity, greater brand recognition, and substantially more trading activity.