Bitcoin exchange LocalBitcoins is set to close this month in response to the "ongoing very cold crypto winter."
LocalBitcoins, based in Helsinki, is one of the longest-running exchanges. It started 10 years ago and has averaged between $5 million and $7 million in weekly trading volume over the past four months, a far cry from 2017 when it surged to above $100 million in consecutive weeks, according to data from CoinDance.
"We are sad to share that regardless of our efforts to overcome challenges during the ongoing very cold crypto-winter, we have regretfully concluded that LocalBitcoins can no longer provide its bitcoin trading service," the company said in a statement.
Trading will be suspended on Feb. 16, after which users will be able to log in only to withdraw their crypto.
LocalBitcoins offered peer-to-peer and escrow services for users looking to buy or sell bitcoin via traditional bank transfers and cash deals across multiple currencies on a global scale.
When bitcoin was in its early stages, LocalBitcoins became a key marketplace that drove liquidity. It also spurred the lucrative arbitrage market as users could sell bitcoin at a spread above spot price and then buy the asset on centralized exchanges for cheaper.
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