Odaily Frontline | Encryption company Fairx fails due to lack of funds
This article comes fromAMBCrypto, original author: Biraajmaan Tamuly
Odaily Translator |
Odaily Translator |
The crypto industry is a particularly difficult place to survive and thrive in the long run. This is especially the case with cryptocurrency exchanges in this regard. In fact, the average life expectancy of a cryptocurrency exchange in 2019 is only around 15 months. Another cryptocurrency-related business announced its exit, underscoring this fact once again.
In a recent official tweet, the crypto business Fairx, which aimed to establish a "licensed national bank," announced its failure. "At the end of the day, our business model is simple: bring in a new, licensed, fully regulated national bank, modeled on a financial market utility, and work with individuals and banks to create a dollar-denominated dematerialized bank deposit .The bank is Frank Financial."
It also stated that stablecoins are a flawed concept because bank deposits attached to stablecoins are not legally owned by token holders, but by stablecoin issuers. Fairx further stated that it has developed various systems to facilitate launches with other protocols such as Ethereum, Stellar and R3’s Corda. However, the idea was shelved after receiving constructively positive feedback from regulators. However, the entire reason the company collapsed was its funding.
After receiving the first funding to launch the binary phase, the company quickly realized it needed more capital to fuel growth. However, this did not happen as many investors pulled out and the crypto investment community suffered as the idea of “centralization” of banks did not bode well for their plans.
Therefore, Fairx, realizing that further development was impossible without continued funding, decided to call it a day.
