Cryptocurrency exchange Bitfront has announced its intention to cease operations in the coming months, citing challenges facing the industry. The American trading platform, backed by Japanese social media giant Line, indicated that the decision was not related to the FTX collapse.
Line-Backed Digital Asset Exchange Bitfront Cancels New Registrations
Bitfront, a cryptocurrency exchange operating in the United States, has suspended new registrations and credit card payments with plans to cease operations in a few months. The move comes despite efforts to overcome the current challenges in the “rapidly evolving” crypto industry, the company announced, as cited by Reuters and Bloomberg.
In the statement published on its website, the exchange explained that it “regrettably determined that we must close Bitfront in order to continue growing the Link blockchain ecosystem and the Link token economy.” The US-based platform, which was launched in 2020, is backed by Japanese social media company Line Corp.
Bitfront also pointed out that the decision to close is not related to the problems of “certain exchanges that have been accused of misconduct”, an indirect reference to FTX, one of the largest global players in the market before it collapsed and filed for bankruptcy. protection on November 11 amid liquidity problems.
Other companies in the space, like Blockfi for example, have been hurt by exposure to FTX. The crypto lender announced on Monday that it has filed for Chapter 11 bankruptcy protection along with eight of its subsidiaries. When Blockfi paused withdrawals earlier this month, it specifically cited the “lack of clarity” regarding the status of FTX at the time.
With a 24-hour volume of less than $94 million, only a dozen trading pairs and six currencies, according to Coingecko, Bitfront has a small share of a market with a total trading volume of nearly $57 billion during the same period, Bloomberg reports. noted
The exchange informed users that new registrations and card payments were suspended on November 28, while deposits in cryptocurrency and US dollars will be suspended on December 30. It also urged customers to withdraw all their assets by March 31, 2023, when all withdrawals will also be suspended.
Are you waiting for other crypto trading platforms to take off? Let us know in the comments section below.
Image Credits: Shutterstock, Pixabay, WikiCommons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use or reliance on any content, goods or services mentioned in this article.