LocalBitcoins from Finland is Shutting Down After 10 Years of Service
Customers of LocalBitcoins have one year from now to withdraw their cryptocurrency from the LocalBitcoins wallet.
The shutting down of LoclaBitcoins is a sign that this crypto winter has pushed some of the best crypto projects to the breaking point.
Buckled under market pressures, LocalBitcoins, a Finland-based bitcoin
After serving its clients for more than ten years, the peer-to-peer (P2P) bitcoin platform LocalBitcoins, based in Finland, is ceasing operations. Customers of LocalBitcoins have one year from now to withdraw their cryptocurrency from the LocalBitcoins wallet, however, it is recommended that they do so right away to avoid any complications later.
On February 9, LocalBitcoins formally announced the end of its services, blaming the challenging market conditions brought on by the prolonged cryptocurrency winter. Despite desperate efforts, the company is not able to withstand the rough market pressures.
The official announcement was made stating their helplessness that LocalBitcoins can no longer perform its Bitcoin trading service, despite the efforts to overcome every odds during the ongoing very cold crypto-winter.
All users were urged by LocalBitcoins to remove their cryptocurrency holdings from the service and asked to go ahead and remove Bitcoin from their LocalBitcoins wallet. Users will be able to withdraw cryptocurrency from LocalBitcoins within 12 months, the release claims.
What is P2P Trading?
When cryptocurrencies were not as popular as they are now, there were very few exchanges that had adequate liquidity to function as centralized entities. Most of the initial crypto exchanges were based on a P2P mechanism that connected traders via their platform. They charge a small fee from both the users involved in the trade in exchange for the security and escrow services that they provide.
Today, when people are reducing their reliance on centralized crypto exchanges, P2P exchanges are again regaining their lost charm. Apart from reducing the power of a central entity, P2P exchanges also have other benefits including,
P2P exchanges charge a lesser fee when compared to centralized exchanges
P2P exchanges do not need strict KYC to trade on their platforms unlike centralized exchanges
P2P trading is known for providing the best value in exchange of your digital assets. In P2P price is decided by the people involved in the trade
The shutting down of LoclaBitcoins is a sign that this crypto winter has pushed some of the best crypto projects to the breaking point. However, a systematic shutdown is far better than a sudden bankruptcy of an entity that deals with customer funds.
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