Popular P2P Bitcoin trade platform LocalBitcoins decided to shut down its services citing very low trade volume on the platform.
LocalBitcoins is a popular peer-to-peer (P2P) Bitcoin trade platform, which was launched in 2012. Around 10 years ago, Bitcoin buying and selling was not easy in almost every country because there were limited numbers of Bank deposits supported crypto platforms. In 2017, LocalBitcoins was among the top crypto exchanges as this platform processed $100 million worth of Bitcoin trades on average per week. In the last few months, the average Bitcoin trade volume per week was nearly $5.5 million.
Recently LocalBitcoins announced that it will discontinue its services citing very bad Crypto market situations, where the company failed to generate sufficient revenue.
“Regardless of our efforts to overcome challenges during the ongoing very cold crypto-winter, we have regretfully concluded that LocalBitcoins can no longer provide its Bitcoin trading service,” the Company stated.
From 9 Feb 2023 company suspended new users’ registration and now from 16 Feb platform will suspend Bitcoin deposit & trade services.
LocalBitcoins suggested customers withdraw funds from the platforms as soon as possible. The maximum time for the customers to withdraw funds is the next 12 months.
Crypto & Bankruptcy filings
In the last 6 months of the period, several crypto companies filed for bankruptcy in the United States (US) citing bad financial positions.
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In Nov 2022, FTX crypto exchange filed for bankruptcy under the chapter 11 code in a US bankruptcy court. All the companies, which had significant exposure to their financial position with FTX, collapsed badly.