The effect of the lingering crypto winter market has caught up with another crypto exchange, Liqui Exchange. The exchange announced recently on its official website that it is shutting down operation soon.
R.I.P. Liqui Exchange
Bought my first $VET on Liqui when it wasn’t trading on more reliable exchanges. Must have been Oct 2017 and already felt as a risky move at that time….. pic.twitter.com/ddabcR78XC
— Crypto_Ed_NL (@Crypto_Ed_NL) January 28, 2019
Liqui Exchange Announcement Of Shutting Down Operation
Liqui exchange noted in an official press release on its website that it is stopping operation and is advising its users to withdraw their remaining digital assets from the exchange. The release stated that Liqui is no longer able to provide liquidity for the users left and the firm does not see any economic point of providing its users with the services. It was further noted that the firm is unwilling to return to where it was a month ago, it has decided to close down all accounts and stop providing services to users. The firm stated that it is disheartening to make the decision.
Further, though the exchange is shutting down, it noted that it might be back soon, but it depends on the crypto market which has changed significantly since Bitcoin reached its apogee at the later part of 2017.
Twitter Reaction To Exchange Shut Down
The news of the shutdown attracted responses from various Twitter users. One Twitter user stated that this is just the beginning of exchange purge. He stated that he believes that more, especially smaller exchanges will follow, as the bull market was noted to have led many to make a huge investment in their IT infrastructure and the bear market has dried up the trading volume.
Also, another Twitter user stated that,
“Liqui is no longer very liquid – withdraw your coins asap, or risk losing them forever, as they shut down shop.https://liqui.io”.
Notably, the decision to shut down may stem from the acute criticism the firm faced last year when users complained about lack of withdrawal time after 25 coins were delisted from the platform. This was noted then as an exit scam of the firm.
The Lingering Cryptocurrency Winter Market
The lingering cryptocurrency winter market has led to many crypto firms in the crypto space folding up and many selling their crypto holdings. Also, many firms have embarked on reducing their staff strength to stay relevant in the crypto market.
The crypto bear market which has led to a loss of over 90 percent worth of the crypto market cap, as well as value, continue to haunt investors and enthusiasts alike, even as a reversal is being awaited.