As one of the first NEO-based application to incorporate decentralization, Aphelion is shutting down today. The decentralized P2P exchange has now disabled trading for all the pairs except NEO/GAS.
It wasn’t a choice. Rather, due to the lack of funds and insignificant volume on the exchange, Aphelion was forced to end its journey. As posted on the Aphelion Telegram channel, the team took nearly two years to build the DEX trading platform, and continued to operate at a loss for several months now:
It is with great disappointment we must report our groundbreaking DEX and project is taking steps to close down. After nearly 2 years and successful applications across all channels and 10s of thousands of lines of open source code that the market has finally taken its toll. Ultimately, users are not using the DEX and trading NEO based assets overall which makes the project unsustainable.
We’ve been operating at a loss for all of 2019 and altough we raised capital to incorporate ETH and BTC into our wallet it was too little too late. That coupled with our current token value has lead to our decision. We wish the community and the industry the best moving forward.
The Aphelion Community Saw This Coming
Although the Medium account is deleted, Aphelion did share a post in June announcing a development “pause.” Back then, Aphelion CEO Ian Holtz cited “lack of funds” as one of the key reason.
Since then, the company has been seeking funds to continue its operation. He also said:
“Unfortunately, if it fails over the next few months we will likely need to take steps to close the business.”
In several ways, the community saw this coming. Aphelion’s operations were limited in the last couple of months — and this official announcement marks the death of the project, leaving plenty of investors disappointed.
Aphelion’s APH Token Price Takes A Hit
Unfortunately, with this news, Aphelion’s APH token is losing its value. Major investors are selling their tokens.
At the time of writing this article, Aphelion (APH) token lost 65% in value within 24 hours (source: CMC). It also continues to lose its volume.
APH tokens acted as escrow, and they were required for every transaction on the peer-to-peet platform. Based on the number of transactions, APH holders would earn a portion of the transaction fee — as APH tokens. In short: APH holders were earning APH tokens on every completed transaction without having to lock the tokens.
However, with the shutdown, the token has no utility and the project’s future comes to an end.