The NEO blockchain-powered peer-to-peer trading platform Aphelion has announced shutting down of its non-custodial exchange, owing to unfavorable market conditions.
Besides being known for its wallet-based peer-to-peer trading solution, Aphelion has known one more thing – for carrying out second-ever NEO blockchain-based public token sale in 2017 that successfully raised over six and a half billion dollars ($6.5 billion) through APH token sale.
About the exchange
In July 2018, Aphelion introduced its non-custodial exchange integrated into the NEO testnet, the first-ever wallet-based DEX. Soon after, it successfully launched a mobile version and an iOS equivalent for Android users.
Unfortunately, things started to go downhill when the trading platform listed NEX token on NEO MainNet-powered non-custodial exchange, which at the time had just been classified as a security token. And while the industry experts raised eyebrows in disbelief and questioned its authenticity. Aphelion jumped to self-defense by stating that the platform has sought legal advice throughout its process of establishing the non-custodial exchange service and that it is compliant with the regulatory framework.
Ultimately, the rigorous clampdown by the US Securities and Exchange Commission (SEC), which led to shutting down of its Neo MainNet trading and low exchange volumes, Aphelion was left with very little funds for sustainability and development.
Aphelion’s non-custodial exchange comes to an end
Thus, on Oct 08, the exchange took it to Twitter to announce its official closure of non-custodial exchange services. In the post, it mentions that after two years of fighting for survival, the trading company has finally given in to hostile market conditions.
It is with great disapointment we must report our groundbreaking DEX and project is taking steps to close down. After nearly 2 years and successful applications across all channels and 10s of thousands of lines of open source code that the market has finally taken its toll.
— Aphelion (@Apheliontoken) October 8, 2019
It also adds that the company did not receive the response anticipated from its decentralized exchange (DEX). Moreover, the NEO-based assets lost their charm in the market as user response was inadequate.
All of this and much more has got the company running into severe losses and made it unsustainable. Now, the DEX link simply urges users to cancel their orders and withdraw their deposits.