A blog post on June 11 by the CEO Edward Woodford has confirmed that the US-based exchange Seed CX is shutting down and would turn all its attention to the settlement infrastructure. Its settlement arm Zero hash has been its main steam of profit-generating almost 95% of it.
[ICYMI]: Press Release – Zero Hash Announces AiX to Leverage Its Settlement Infrastructure to Settle Digital Asset Trades. https://t.co/mxO45EMyq2
However, the CEO stated that they're trying to look beyond just profits and their new aim is to become the leading settlement infrastructure company and so they're shifting all their focus on it. He also went on to add that the offering exchange products has sometimes being led to conflict among its users but now they're putting all their eggs in one basket to achieve their core mission. The shutting down of the exchange would help Seed CX revamp their model and increase their efforts in becoming the leading brand when it comes to settlements. The last day of trading has been decided as of June 12.
The Seed CX didn't go down without a fight as it adopted various schemes to increase its market share in 2019. The reading fees it decided to offer were one of the lowest and it partnered with Fintech firms in Asia. However, success and profitability they were seeking continued to elude them as they managed only an average $6 million in daily trading with very little of it coming in the form of fees. However, the CEO confirms that the company would stay in the profit zone in 2020.
Seed CX, however, is eyeing more profitability and a fundraising campaign is in its sight, which involved previous investors Bain capital. The firm raised $15 million back in 2018 through a Series B round. New ways to increase funds and all shifting all the focus on its main mission could turn out to be a smart call by the firm.
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