Cryptocurrency exchanges play a pivotal role in the digital asset ecosystem, facilitating trading, liquidity, and price discovery. Among these platforms, CoinExchange once served as a notable player before its eventual closure. This article examines CoinExchange's trade volume, market listings, and operational status while providing insights into cryptocurrency exchange dynamics.
Overview of CoinExchange
CoinExchange, a now-defunct cryptocurrency exchange, suspended trading and deposits on October 15, 2019, with full website deactivation occurring on December 1, 2019. The platform was categorized as an "Untracked Listing" on CoinMarketCap due to unavailable volume data and unresolved reserve transparency.
Key Events:
- October 15, 2019: Trading and deposits halted.
- December 1, 2019: Final shutdown after enabling withdrawals.
👉 Explore current top-rated exchanges for reliable trading alternatives.
Why CoinExchange Closed
The shutdown reflected broader challenges in the competitive exchange landscape, including:
- Regulatory Hurdles: Compliance costs and evolving legal frameworks.
- Liquidity Issues: Declining trade volumes and user activity.
- Market Saturation: Rise of decentralized exchanges (DEXs) and institutional platforms.
Understanding "Untracked Listings" on CoinMarketCap
CoinMarketCap assigns listing tiers based on:
- Data Accuracy: Verified volume and reserve metrics.
- Transparency: Publicly auditable financials.
CoinExchange's "Untracked" status indicated:
- Missing 2% depth metrics for bid/ask spreads.
- No verifiable 24-hour trading volume.
- Absence of token allocation or reserve data.
Lessons from CoinExchange's Closure
- User Due Diligence: Prioritize exchanges with real-time audits (e.g., Proof-of-Reserves).
- Liquidity Indicators: Monitor depth charts and volume consistency.
- Contingency Planning: Maintain secure off-exchange storage (cold wallets).
👉 Compare exchange features to mitigate operational risks.
FAQ: CoinExchange and Exchange Listings
Q: How does CoinMarketCap verify exchange data?
A: Through API integrations, on-chain analysis, and third-party audits under Listings Review Criteria.
Q: Can defunct exchanges reactivate?
A: Rarely—permanent closures typically involve irreversible technical or financial insolvency.
Q: What replaced CoinExchange's market share?
A: Hybrid platforms offering spot/derivatives trading combined with DeFi integrations gained prominence post-2019.
Key Takeaways
- Volume Transparency: Critical for assessing exchange reliability.
- Regulatory Readiness: Exchanges must adapt to global compliance standards.
- User Protections: Opt for platforms with insured custodial services and multi-sig withdrawals.
For updated market insights, always cross-reference multiple data aggregators beyond CoinMarketCap.