- Derivatives platform DueDEX is shutting down
- Users had three days to withdraw funds from the platform
- There is no hack of other security incident, it is a business decision
The cryptocurrency world is incredibly competitive for any service provider. As a result, gaining traction and retaining customers can prove very difficult for some ventures. For example, DueDEX, one of the many Bitcoin futures and derivatives trading platforms, promptly throws in the towel all of a sudden. A somewhat strange development, although the team claims its overall performance did not meet expectations.
Curtain Call For DueDEX
It is commendable to see developers try their hand at competing with established trading platforms. DueDEX, with a strong focus on bitcoin derivatives and futures trading, aimed to do so in a somewhat decentralized manner. Registered in Belize, the project wanted to rival the bigger derivatives platforms. It even offered up to 100x leverage in a bid to attract more users.
Even though DueDEX had support for both desktop and mobile users, it was never available to customers in the US due to regulatory concerns. Its trading engine could process 100,000 transactions per second, albeit it seems unlikely that it ever got put to the test. The platform never took off in a meaningful manner, which is somewhat surprising. Moreover, the lack of trading volume on popular data aggregators raised many uneasy questions.
Even though all of the functionality outlined above is positive, the platform struggled from day one. With no support for fiat currencies, the platform was never novice-friendly. If one doesn’t have crypto assets, a platform like DueDEX is not the one for you. Considering how users need to acquire crypto first – mainly through exchanges that offer derivatives and futures trading – there was never a prominent reason to check out DueDEX.
With all that said, it is not too surprising to see the team pull the plug. In the announcement, they state how the platform didn’t perform as expected. That refers to the overall trading volume and revenue generated from it. There was no hack or other security incident, and user withdrawals have been processed.
The short notice – the closure was announced on July 9th, and users had to withdraw before July 12th – did not go over well with everyone. However, it seems no funds are lost, which is the important thing.
Derivatives Trading Remains Popular
The shutdown of DueDEX will not impact Bitcoin’s derivatives and futures trading in the slightest. Although having fewer providers is never fun, there are many other options to choose from. For example, Binance remains the current market leader, per CoinGecko, and provides fiat currency support to buy crypto assets, something DueDEX always lacked. The same applies to several other service providers, as most of them have fiat currency gateways.
In the past 24 hours, there has been over $92 billion in Bitcoin derivatives trading volume. A substantial amount indicating the concept remains valid to this day. However, not every team is adequately equipped to provide such services compellingly and attractively. That is unfortunate, but running a cryptocurrency business requires innovation and constant work. When those efforts do not pay off, it is better to call it quits altogether.
The disappearance of DueDEX is unlikely to make much difference. Very few people talked about the project in recent months, confirming it never captivated an audience. It is unfortunate when ventures don’t succeed, but the industry keeps trucking along with or without this platform.