Crypto Winter Forces LocalBitcoins To Shut Down Operations 14

Crypto Winter Forces LocalBitcoins To Shut Down Operations

  • LocalBitcoins has announced that it will shut down its platform this month. 
  • The Bitcoin exchange cited the ongoing crypto winter as the reason for this move. 
  • Users will be able to withdraw their funds from the platform over the next 12 months. 
  • The platform served customers in more than 190 countries for over 10 years.

Popular peer-to-peer Bitcoin exchange LocalBitcoins announced earlier today that it is shutting down operations this month. The Finland-based firm cited the current market downturn for this decision. According to a statement from the exchange, the challenges posed by the ongoing, “very cold crypto winter”, led to the platform’s volume and market share to decline. 

LocalBitcoins shuts shop after ten years

LocaBitcoins is one of the oldest crypto exchanges. The platform has been serving customers from over 190 countries for more than ten years. The exchange saw a yearly trading volume of $2.3 billion, serving more than 8 million users over the past year. 

However, data from Coin Dance shows that weekly trading volume has been in a steady decline since 2021. The first week of January 2021 recorded a trading volume of nearly $40 million. By January 2023, that figure went down 85% to $5.7 million. LocalBitcoins recorded its highest-ever trading volume back in 2017. The last week of December 2017 saw a volume of almost $130 million, a far cry from the latest figures. 

Regardless of our efforts to overcome challenges and turn our trade volumes and declining market share back to growth, we have regretfully concluded that LocalBitcoins can no longer provide its Bitcoin trading service”

LocalBitcoins suspended new signups earlier today. As per the timeline laid out on its official website, the trading of Bitcoins will be suspended on 16 February. After that, users will only be able to use their wallets to withdraw their funds. Users can withdraw their funds over the next twelve months.