Investors are surely hurt by the shutdown of Bitfront. Many are noticed to be skeptical about investing in cryptocurrency. Is there still hope in the digital money world? Only time will tell.
Despite attempts to overcome difficulties in the quickly developing market, the U.S. cryptocurrency exchange is shutting down. It announced it has ceased new sign-ups and credit card payments.
The California-based firm, who’s sponsored by Japanese social media company Line Corps, stated in a post on its website on Sunday:
“We regretfully realized that we must shut down despite our best efforts. We need to continue building the LINE blockchain ecosystem and LINK token economy.”
Why Is BitFront shutting down?
However, Bitfront emphasizes that this move is not a result of any crypto exchanges that have been accused of misconduct.
The world’s 3rd biggest coin exchange, FTX, is under investigation for criminal misconduct but they are not related BitFront in any way. FTX declared bankruptcy earlier this month after customers did a ‘bank-run‘ after realizing the company had insufficient assets in their reserves. As a domino effect, digital currency lender BlockFi was forced to file for Chapter 11 bankruptcy protection on Monday.
Customers Blocked From Doing Transactions
After suspending new sign-ups and credit card payments, Bitfront plans to suspend withdrawals on March 31, 2023. Accordingly, The business made it clear that interest payments for deposits made between December 5 and December 11 will be made on December 13, 2022.
Investors are surely hurt by the shutdown of Bitfront. Many are noticed to be skeptical about investing in cryptocurrency. Is there still hope in the digital money world? Only time will tell.
