Flash Trade said Friday that it plans to wind down its Solana-based perpetuals exchange unless it can find a buyer, framing the decision as a strategic one rather than a response to funding pressure. In a statement posted on X, the team said the move reflects questions of direction, a shrinking pool of market participants, and its view of where the broader crypto market is heading.

The project is now seeking a sale of its technology stack, brand and intellectual property. Flash Trade said any proceeds from such a deal would be distributed pro rata to FAF token holders, while the team would not take a share and team-held tokens would be excluded from that distribution.

Team cites market direction, not cash needs

According to Flash Trade, the planned shutdown was not based on monetary reasons. Instead, the team pointed to what it called an honest assessment of the market, including reduced participation and a mismatch between the project’s own direction and the part of the crypto market it sees developing.

The exchange also described an ethical conflict with current user demand. It said its order flow indicated that traders increasingly wanted exposure further out on the risk curve, something the team said it was not comfortable serving.

Sale process and token-holder distribution

Flash Trade said it is pursuing a sale of the exchange’s core assets, specifically naming its tech stack, brand and intellectual property. If a buyer is found, the proceeds are intended for FAF holders on a pro rata basis.

The team said it will not claim a percentage of the sale and that team tokens will not participate in any payout. The project added that it has never raised outside capital and has so far distributed about $520,000 in USDC in revenue share to FAF holders.

Withdrawals stay open as operating details are set

No shutdown timetable has been announced. Flash Trade said withdrawals will remain available and promised clear advance notice before any change to that status.

The practical steps for winding down have not yet been finalized. The team said it will determine key points in a Monday call with token holders, including when new positions would be disabled, how existing open positions would be settled, what liquidity providers may need to do, and the dates tied to each step. A written summary is expected immediately afterward.

Earlier options and next steps

Before moving toward a sale, Flash Trade said it had explored freezing its automated market maker with MetaDAO so that funds in the AMM could be returned to holders on a pro rata basis. That approach, it said, was not possible.

The project has already removed the three-month delay on token staking, allowing holders to unstake immediately. Flash Trade’s founders are also scheduled to hold an AMA on X on Monday, Aug. 10, at 16:00 UTC, which is the next confirmed opportunity for users and token holders to hear more about the process.

Source: thedefiant.io