Line’s BITFRONT closes operations, focuses on blockchain and LINK token
Japanese messaging giant Line has revealed plans to shut down its digital asset exchange firm BITFRONT due to troubling market conditions.
BITFRONT revealed the development in a statement released on November 28, saying it intends to close the curtains on operations in March 2023. The exchange blamed the decision on the prolonged “crypto winter” that has plagued the digital asset industry since the second quarter of the year.
“BITFRONT was established to enable users to safely store and freely trade their digital assets. And from the beginning, we have done our best to be a leader in the blockchain industry,” the statement said. “However, despite our efforts to to overcome the challenges of this rapidly evolving industry, we have unfortunately decided that we must close BITFRONT…”
The firm says that shutting down the exchange’s operations will give it plenty of time and resources to develop the LINE distributed ledger and its LINK token. The disclosure revealed that the liquidation process is not related to the widespread occurrence of exchanges that were closed due to misconduct.
From 28 November, new users will be barred from registering on the systems, while further deposits and interest payments will be suspended on 12 December. The firm notes that users have until December 30 to cancel open orders and trades, while withdrawals will be suspended. stopped March 31.
BITFRONT assures users that personal information obtained during use of the product will be deleted within 40 days after suspension of withdrawals.
The exchange started operations in 2018, operating under the name Bitbox, but a rebrand in 2020 saw it change to BITFRONT. Although considered a small exchange, BITFRONT recorded an average transaction volume of around $55 million while supporting trading for only BTC, ETH, LTC and Tether (USDT).
The fall of digital asset exchanges
Digital asset exchanges have endured a torrid year inundated with shocking collapses that have reverberated throughout the ecosystem. Terra’s implosion was the first shot that rattled exchanges worldwide, with Celsius, Zipmex and Vauld halting withdrawals for users.
Gemini, Coinbase (NASDAQ: COIN ) and Crypto.com were rocked by the collapse as they began laying off significant numbers of employees.
Things reached a ferocious pitch with the implosion of FTX, a leading exchange in the industry, leaving thousands of investors with a faint hope of getting their money back. The shocking collapse forced the hands of surviving exchanges to show proof of reserves in an attempt to reassure users that their money was safe with them.
See: BSV Global Blockchain Convention panel, The Future of Digital Asset Exchanges & Investment
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