Cryptocurrency infrastructure startup Qredo’s cash shortage has forced it to shut down its hybrid exchange project, which launched in beta just a few months ago.
Ankex, incubated and unveiled by Qredo in November last year, was known as a hybrid derivatives exchange that combined centralized and decentralized functions. Michael Moro, former CEO of Genesis Global Capital, was hired to run Ankex in April. This was about eight months after he stepped down as CEO of Genesis and several months after the company filed for bankruptcy.
However, Qredo’s recent financial difficulties led to the closure of the Ankex platform and Moro’s departure from the business, according to sources familiar with the matter. Some parts of the Ankex website still work, but other parts, including links to the signup, login, and support pages, no longer work.
A Qredo spokesman declined to comment.
Credo, which was valued at $460 million when it raised $80 million in a Series A round in February 2022, appears to have recently been under significant financial pressure. In September, the same month Ankex announced the launch of its beta platform, Qredo cut its workforce by about 50 people to cut annual costs by 35%. Then, in November, the company laid off 50% of its remaining employees.
At the time, the company reportedly only had six months left on its runway and was seeking new funding and exploring potential acquisitions.
Refocus resources
Last November, a spokesperson told The Block that the bear market had forced Qredo to refocus on its core business.
“Qredo recorded an average of $2.5 billion in monthly trading activity from the second half of 2022 to the first quarter of 2023. “This activity has declined along with overall market activity throughout the year,” they said. “As this cryptocurrency winter drags on, Qredo has decided to right-size its business and focus on its core growth areas of web3 wallet and custody solutions.”
Ankex’s closure comes despite its product fitting neatly into current cryptocurrency trends. This allowed users to self-manage their funds while attempting to replicate the user experience in terms of liquidity, latency, and support provided by centralized venues.
On joining Ankex after Geneis’ death, Moro said he was “acutely aware of the importance of empowering traders to operate on a trustless platform while retaining full control of their assets at all times.”
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