StellarX, a decentralized exchange for the Stellar (XLM) marketplace was recently purchased by a Canadian crypto exchange Coinsquare, headquartered in Toronto. The announcement regarding the purchase was released yesterday, February 14th, on StellarX’s Medium Page.
— Stellar Lumens $XLM (@xlmstellarlumen) February 14, 2019
According to the announcement, StellarX will remain operational, and under its own brand. But, there will be some changes regarding the internal restructuring. For example, Megha Bambra, the co-founder of BlockEQ, will become the project team lead. Bambra will also introduce her own developer team, which is based in Toronto as well.
However, while these changes can be expected, the goals that StellarX set earlier will still remain on the DEX’s roadmap. Furthermore, the announcement also claims that Bambra’s team is strong and that it will likely improve the coming StellarX app. Additionally, the announcement hinted at the possibility of new opportunities, the likes of which were previously not possible, such as the listing of securities and new fiat currencies.
Coinsquare continues its expansion
While this is a significant move for Coinsquare, it is not the only one that the Canadian exchange has made recently. Only two months ago, in December 2018, the largest Canadian exchange also bought Stelar’s wallet platform, BlockEQ. The purchase of BlockEQ ended up costing the exchange $12 million, and it was said that the wallet would be rebranded to become “the anchor wallet for the StellarX platform.”
It appears that Coinsquare sees a lot of potential in the Stellar project, as the exchange continues to focus on aligning itself with the Stellar ecosystem. This was somewhat confirmed by Cole Diamond, the CEO of Coinsquare, who stated that Stellar is the fastest payment network in the world. Diamond believes that StellarX might be an industry leader, and drive further crypto adoption.
This is also not the only example of large crypto exchanges choosing to support a particular coin or network, as Binance recently decided to offer its support to TRON and BitTorrent projects, while Coinbase responded by supporting BAT.
Coinsquare managed to rise in Canada after the scandal revolving around another large exchange, QuadrigaCX. The incident occurred when Quadriga’s CEO passed away without revealing the keys to the exchange’s reserves. As a result, no one can access them at the moment, and it remains unclear if the funds can ever be accessed.
This particular case pointed out a serious technical flaw regarding the way many crypto exchanges store their funds, and investors have been concerned regarding this and other such incidents occurring in the future. For now, many are hoping that the regulators will find a way to prevent similar scandals by coming up with a working regulatory framework. However, as of yet, no such regulations were announced, and the issue remains without a working solution.
Meanwhile, while they are waiting for the proper regulatory framework, crypto traders and investors should also keep a close eye on the crypto news and prices.