Fiscal services providing company- FairX-known for banking and digital assets has closed down its processes as its attempt to establish a licensed national bank was unsuccessful.

Based on information provided by a FairX Twitter thread on the 19th of July, it was revealed that the company did not meet up with the criteria of setting up a licensed national bank owing to a lack of funding. After the history of unsuccessful funding in 2018, there has been hesitations this year to raise funds for various cryptocurrency projects & ideas. A lot of people talked about the amount of new money entering the space last year, but when it comes to actual results – it’s a known fact that nearly 90%+ of funding did not yield a ROI.

 The fiscal services providing company was making an effort to raise funds for the planned bank over the past 14 months, which it labelled as a new, accredited, fully regulated national bank, developed as a financial market value, that would work alongside individuals and banks to generate a de-materialized bank deposit, denominated in United States Dollar.

The post went further to explain that the proposed dematerialized bank deposit would act, in many regards, in the same way as a stablecoin, except that it was not a stablecoin. In addition, it revealed that, stablecoin, by its definition, is not an asset that can settle transactions between banks in the background of, either, automated clearing house (ACH) or CC credit card (CC) transactions.

The firm stresses that it thrived in introducing its business idea to regulators, conforming with Know Your Customer, Anti-Money Laundering and counter-terrorism financing rules, as well as in receiving positive feedback from regulators.  Unfortunately, after kicking off its binary stage, FairX grasped that it needed another instillation of capital.

It was at this juncture that the crypto investment community backed out allegedly due to the bank’s perceived centralization.

In similar news, it was earlier reported by a crypto news blog that Indian cryptocurrency exchange Cryptokart stopped its operations. Gaurang Poddar the founder of the cryptocurrency exchange, described the shutdown of the exchange as difficult, taking into consideration the hard work that was put in, but resolved that in general, the experience was positive. Poddar revealed that he was proud of the platform and appeared resolved to remain in the field. He was reported stating that he was interested in information about any establishment or individual willing to start up a new exchange.

Also, Liqui, a cryptocurrency exchange that has been in existence since 2016, announced earlier in the year that it was shutting down, naming a lack of liquidity as the primary reason. According to Liqui’s announcement, the exchange is no longer able to provide liquidity for the remaining users and do not see any economic point in providing the users with their services. It was also revealed that Liqui users would be given 30 days to withdraw their assets from the exchange. Liqui’s announcement emanated after a chain of asset de-listings, which lead some traders to believe the exchange was attempting an exit scam.

 At it stands, almost half the crypto companies that previously raised money are shutting down, either because of lack of funding, lack of motivation, or because they exit scammed. What this implies to the outside world is a deficiency of development on their code base and the lack of user growth.

Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the crypto currency they discuss. The information and content are subject to change without notice. Visionary Financial and its affiliates do not provide investment, tax, legal or accounting advice. This material has been prepared for informational purposes only and is the opinion of the author, and is not intended to provide, and should not be relied on for, investment, tax, legal, accounting advice. You should consult your own investment, tax, legal and accounting advisors before engaging in any transaction. All content published by Visionary Financial is not an endorsement whatsoever. Please also visit our Privacy policy; disclaimer; and terms and conditions page for further information.

You May Also Like

Allianz, the Insurance Giant, Could Start Accepting Crypto Payments Soon

Since 2017, many mainstream companies have been entering the blockchain world. Many…
Ripple Acquires 10% Stake in MoneyGram - Plans To Fully Deploy xRapid / XRP

Ripple Acquires 10% Stake in MoneyGram – Plans To Fully Deploy xRapid / XRP

Today Ripple has announced a “strategic partnership” with MoneyGram who will be…

Bitcoin Technical Analysis, BTC Price Sell-Off Seems Natural And Signaling $11,000 Test

After posting +4.5% gains last week, Bitcoin price has shed most of…

Bitcoin Takes Negative Sentiment From 2018 and Turns it Into Bullish Fuel in 2019

Bitcoin has been in the news frequently in 2019 as its showed…

One of South Korea’s Largest Firms Kakao Has A Crypto Making its Exchange Debut on Upbit

A recent report in the Korean Times indicates that the Klay crypto coin will…

German’s Stuttgart Stock Exchange Taps on Crypto Market

It’s no surprise that the popularity of the crypto market catching the…

Lancium And MP2 Energy Are Helping Crypto Mining Firms Reduce Their Costs

Lancium, a data center company and MP2 Energy announced on June 19 that they…
Teller Finance

Teller Finance Integrating with Chainlink Ahead of Unsecured Lending Protocol Launch

Teller Finance, a blockchain project for decentralized lending, today announced its upcoming…
BitGo

BitGo Will Use Chainlink For On-Chain Auditing of Wrapped Bitcoin

On October 1, 2020, BitGo announced that it would integrate Chainlink, the…

Stellar Blockchain And The Samsung Galaxy Join Forces

Stellar Development Foundation, the non-profit organization driving stellar network has just announced…