- 24 Exchange announced that it is shutting down its spot trading.
- The exchange said it had to take this decision due to a lack of demand.
Desperate times call for desperate measures, and the maxim played out quite well in the case of Steve Cohen-backed crypto trading firm, 24 Exchange. In a statement given to Bloomberg, the exchange informed that it is dropping the curtain on its spot trading owing to a lack of demand.
Journey of exchange in brief
The Bermuda-based company was launched in 2018, and raised $14 million in its seed round in 2021. It also attempted to acquire a license for equity trading from the US Securities and Exchange Commission. However, the ,regulator rejected the plea, and the company intends to reapply for it soon.
Besides spot trading, the exchange will continue to offer service as usual. One major factor that made 24 Exchange notable is that it was backed by the US’s poster boy of hedge fund managers. Steven A Cohen is an entrepreneur better known as the founder of hedge fund Point72 Asset Management and SAC Capital Advisors. He also owns the New York Mets of Major League Baseball.
A Peek into the Founder’s Life
Cohen grew up in New York and graduated in the year 1974. Steven started his investment career as a junior trader on Wall Street in 1978. In his first job, Steven achieved a row of feats, including profits of $8000 made on the maiden day. He took the company to a valuation of $100,000 a day and managed a portfolio of $75 million.
In 1984, Cohen started his company SAC in 1992. While he achieved milestones one after another, he couldn’t keep his hands clean throughout his professional journey. In the late 1980s, the Securities and Exchange Commission started examining his conduct due to some suspicions. The regulator suspected that Cohen used inside information in spilling the information about the merger of RCA and GE.
In 2009, Cohen and his brother faced charges of racketeering. He was again dragged into legal trouble in 2012 due to alleged insider trading. One year later, he pleaded guilty to insider trading and consented to pay a whopping $1.8 billion as a penalty.
24 Exchange- Combining Tech & Trading Benefits
Since its launch, 24 Exchange has emphasized giving a dynamic environment to the market participants. It attempted to help the market participants make significant profits while offering access to multiple assets. At the same time, it provides a wide-ranging portfolio at a very competitive fee.
As per the website, the exchange focuses on employing R & D to develop innovations to improve trading services. It also offers customizable pricing and liquidity, making credit management easier for users. In addition, it encourages traders to be discreet in buying and selling while giving the latest updates about the markets.
The exchange has focused on improving the overall trading scenario in many ways. It has tried to reduce the gaps between the distributed liquidity pools and simplified the operating procedures. With an array of innovative solutions, the platform has served well. The traders hope it will continue the same thing in the future too.