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Crypto Exchange Bitfront Shuts Down Amid Industry Challenges – Exchange Bitcoin News
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 Japan’s social media giant Line, indicated that the decision is not related to the collapse of FTX.
Line-backed Digital Asset Exchange Bitfront suspends new registrations
Bitfront, a crypto exchange operating in the United States, has suspended new registrations and credit card payments as it 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 has decided that we must close Bitfront in order to continue growing the Line blockchain ecosystem and the Link token economy.” Launched in 2020, the US-based platform is backed by Japanese social media firm Line Corp.
Bitfront also pointed out that the decision to shut down is not related to the problems with “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 11 .November amid liquidity problems.
Other companies in the area, such as Blockfi for example, have been damaged by exposure to FTX. The crypto lender announced on Monday that it has filed for Chapter 11 bankruptcy protection along with eight of its affiliates. When Blockfi halted withdrawals earlier this month, it specifically cited the “lack of clarity” regarding the state of FTX at the time.
With a 24-hour volume of less than $94 million, just a dozen trading pairs and six coins, according to Coingecko, Bitfront has a small share of a market with a total trading volume of nearly $57 billion during the same period, the Bloomberg report noted.
The exchange informed users that new registrations and card payments have been suspended on November 28, while cryptocurrency and US dollar deposits will be stopped on December 30. It also urged customers to withdraw all their assets by March 31, 2023, as all withdrawals will also be suspended.
Do you expect other crypto trading platforms to go out of business? Let us know in the comments section below.
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