P2P cryptocurrency exchange On October 21, LocalCryptos made the decision to shut down the site after five years of operation.
The P2P exchange said in a statement that it intended to make the winding-down process as seamless as possible so that it can seamlessly move to other exchanges.
On October 21, 2017, the exchange was live, and after five years, it had almost 400,000 registered users. Although it initially only supported non-custodial P2P trading for Ethereum, it quickly extended support for Bitcoin and other UTXO-based coins as well.
According to LocalCryptos, a variety of issues played a role in the company’s choice to shut down. The industry is currently experiencing a bear market, which is the first of these causes.
Exchange also cites the team members’ individual health as well as potential difficulties with regulatory development as other justifications.
“While any of these alone are not the sole reason, they are each motivating factors in our decision. We weighed up all the options, attempted various alternative solutions to keep the LocalCryptos vision alive, but in the end, we made the decision to gradually end our services and recommend our users to other P2P platforms.”
LocalCryptos will stop accepting new accounts
According to the schedule for winding down, no new accounts may be created after November 4. Additionally, by November 18 all new trade creation will be stopped.
Existing users could still access the platform, though. And finish any open trades using the non-custodial web wallet.
The wallet user interface on the LocalCryptos website will always be available. The assets of the exchange’s users are primarily stored in self-hosted wallets because it is not a custodial entity. Or using a non-custodial escrow mechanism on the blockchain.
The latest Adventure of LocalCryptos Eye
The site will continue to publish its newsletter Bytes in the interim.
The conversation highlighted strategies for turning the newsletter into a stand-alone organization. describing the technologies and industry of decentralized financing (DeFi).
Crypto companies feel the pinch of the bear market
While LocalCryptos’ choice may surprise some, the current state of the market has led to the bankruptcy of a number of businesses with a concentration on cryptocurrencies.
In addition, a number of other businesses have started to shut down as a result of their inability to secure new finance. The creator of Siacoin, Skynet Labs, announced that company was closing down due to a lack of finance.
German cryptocurrency bank Nuri declared its closure after failing to find a buyer.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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