US crypto exchange Seed CX has decided to close its exchange business in order to focus its efforts on its settlements product, the company said through an official statement.
The Chicago-based exchange started to focus on the settlements business earlier this year after failing to attract sufficient liquidity and falling behind other platforms in the country.
While other exchanges such as Coinbase reached a daily trading volume of $200M, Seed CX's was only $4-8M, even though it had done its best to attract users by significantly reducing trading fees and teaming up with several Asian fintech companies.
The company has reported its settlements business, which transfers a purchased asset to a buyer's account and cash to a seller's account, accounts for 95% of its total revenue. In addition, the business is expected to already become profitable later this year.
Seed CX plans to attract more funds this month from investors such as Bain Capital.
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