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The shutdown announcement says the shutdown was caused by "challenges during the ongoing very cold crypto-winter". Wish we had more details about that. Did the
by ovi256 4y ago
The shutdown announcement says the shutdown was caused by "challenges during the ongoing very cold crypto-winter". Wish we had more details about that. Did the ongoing winter reduce income to make the service unprofitable ?
- moffkalast 4y agoReading between the lines: "We've made some risky investments as a side deal that REALLY didn't pan out."
- ErikHuisman 4y agoYield farming client funds?
- shp0ngle 4y agoNah they had very little of that actually available. They were not operating like a big crypto exchange.
- im3w1l 4y agoWhat makes you say that? They are shutting down in a responsible and orderly fashion, so I'm willing to take it at face value that they just aren't profitable anymore.
- moffkalast 4y agoThat's likely also the case, but I would at the very least expect a crypto exchange company to keep all their reserves in crypto, which has now completely plummeted in value. Localbitcoins are a bit different than the typical exchange so their exposure is likely less, but if you look at Binance or Robinhood they're all gambling with their backing money like a drunk at the horse races.
- joyfylbanana 4y agoTheir volumes have been getting smaller and smaller throughout the years. Likely reason is that the service just isn't profitable any more. Their volumes are public: https://coin.dance/volume/localbitcoins https://coin.dance/volume/localbitcoins These days there are lots of services offering p2p trading, and big exchanges like Binance also have p2p trading services for multiple cryptocurrencies. I would guess that Binance p2p volume alone is likely many times of that from LocalBitcoins these days. Most players don't publish their volumes though.
- unixhero 4y agoThanks you for sharing the volumes link. Fascinating to say the least.