Bitfront, a crypto exchange, has announced that it will shut down operations by 31 March 2023. Similarly, the exchange has set a deadline to clear all investors' withdrawals and deposits.
You would recall that the exchange began operation in February 2020, less than three years after it shut down. What could have necessitated the move to shut down for such an exchange with great service delivery?
Bitfront, a US Based exchange, announced that it would shut down operations by March 2023. It is the latest exchange to be affected by the crypto winter.
Similarly, the announcement revealed that trading on the exchange would be suspended by the end of 2022. In addition, the exchange will suspend withdrawals on 31 March 2023. As part of the announcement, it said it has been unable to overcome the challenges in this rapidly-evolving industry.
Furthermore, the announcement's timing made industry players associate the shutdown with the FTX debacle.
However, the exchange clarified and distanced the decision from the FTX crisis. They said,
Please note that this decision… is unrelated to recent issues related to certain exchanges that have been accused of misconduct."
The exchange will also suspend USD deposits, crypto, trade, and open API services by 30 December. Bitfront also announced the suspension of new signups and credit card payments effective from 28 November. The exchange says it will suspend additional deposits and interest payments of LN/LN interest. The suspension is because LN/LN interest productions will end on 12 December.
Since the crypto exchange announced the date for its shutdown, its users have begun to withdraw their funds. This announcement has generated mixed feelings from industry players.
Many believed it was more than a coincidence for Bitfront to announce the plan to shut down— the same day another crypto lender, BlockFi, filed for bankruptcy.
Bitfront announced that the shutdown of the exchange service would enable them to grow the LINE blockchain ecosystem and the LINK token. Similarly, the company will be backed by LINE Corporation, a Japan-based firm.
The statement says,
Despite our efforts to overcome the challenges in this rapidly-evolving industry— we have regretfully determined that we need to shut down Bitfront to continue growing the LINE blockchain ecosystem and LINK token economy."
Furthermore, Bitfront said,
From the beginning, we have done our best to be a leader in the blockchain industry."Significantly, they have struggled to keep running the exchange services and have decided to back out by March 2023.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.