LocalBitcoins, one of the oldest and most popular peer-to-peer bitcoin exchanges in the world, with integrated and verified users from 189 countries, has announced that it will be closing its operations after more than ten years of operation. In his announcement, the P2P platform said she was “proud of what we have achieved with all of you, our loyal community“, but that she could no longer provide her service because of the “challenges during the ongoing crypto winter“. Here is the report in this article.
LocalBitcoins ceases operations due to market conditions
“We are sad to share that no matter how hard we try to overcome the challenges during the winter crypto ongoing, we have unfortunately concluded that LocalBitcoins can no longer provide its bitcoin trading service“, said LocalBitcoins in a press release. To go very quickly, the platform has shared a calendar following the closure of its services. First, the platform will start with to suspend new registrations starting today and then exchanges and deposits on February 16. After the February 17the only thing users of LocalBitcoins can do is withdraw their BTC (Bitcoin) from their portfolio. They will have 12 months to do so.
In addition, the platform had continued to release new features, including a function purchase BTC in one click as recently as January 22, according to the official LocalBitcoins Twitter account.
“You can now buy Bitcoin in just 1 click!”, less than a month before the announcement of its closure. LocalBitcoins was founded by Jeremias Kangas in 2012 at helsinki, in Finland. The service matched buyers and sellers of Bitcoinwith the tokens being held in escrow until both parties confirm the transaction. In 2021, the platform expanded beyond Bitcoin, giving users access to a handful ofaltcoins as Dogecoin And Cardano.
The news surprised many members of the community who wondered as to the reason for this sudden closing. Indeed, it is difficult to imagine that a platform as famous as LocalBitcoins don’t survive this new bear market after going through all the crypto winters of last 10 years. What are the costs of this type of service? How was the accounting handled? Why did the possibility of a takeover not arise? These questions remain unanswered for the moment…
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