Openfinance Warns It Will Delist All Security Tokens Without New Funds

Security token trading platform Openfinance is threatening to delist all tokens and suspend trading next month unless issuers cough up more funds to cover its costs. The company has not seen transaction activity on its platform grow quickly enough to cover operating costs, according to an email sent to the alternative trading system’s (ATS) users and shared with CoinDesk on Wednesday. The email is asking issuers with tokens listed on the site to cover these costs with new contracts. If it doesn’t receive new fees, it will delist all existing tokens on May 21 and suspend trading.

Non-tokenized securities will continue trading, the email said, although it’s not clear how many traditional instruments Openfinance actually lists. “We have asked the issuers currently listed on the platform to renew their listing agreements and cover a portion of our costs, including through annual listing fees, as are common in large, public markets, where issuers pay exchanges for listing services,” the email said. A company representative did not immediately respond to a request for comment. Openfinance launched its ATS in August 2018, allowing accredited investors in the U.S. and investors outside the country to trade and purchase security tokens. Read More...

Antminer Banner.png