- Amidst worsening market conditions, popular Japanese crypto exchange Bitfront has resolved to shut down.
- Due to this development, Bitfront has suspended new signups and credit card payments.
- By December 30th, the exchange plans to suspend crypto and USD deposits and trades and will cancel open orders.
- Exchange users were advised to withdraw their assets before 13:00 UTC on March 31st, 2023.
- All deposits will receive interest from December 5th to December 11th, 2022, according to Bitfront’s announcement.
- Firms like Nuri, 3AC, and Celsius have also fallen because of the worsening market conditions in the crypto sphere.
Amidst worsening market conditions, popular Japanese crypto exchange Bitfront has resolved to shut down. The crypto exchange, owned by LINE, a social giant in Japan, made the announcement in its Monday blog post.
"Despite our efforts to overcome the challenges in this rapidly-evolving industry, we have regretfully determined that we need to shut down BITFRONT to continue growing the LINE blockchain ecosystem and LINK token economy," the exchange said. Occasioned by this development, Bitfront has suspended new signups and credit card payments. Meanwhile, the exchange also resolved to halt payments of all interest products by December 12th and further intends to suspend every crypto and USD deposit and trade, and will cancel open orders by December 30th.
Notably, the exchange advised its users to withdraw their assets before 13:00 UTC on March 31st, 2023.
According to the announcement, Bitfront intends to pay the interest enveloped in all deposits from December 5th, 2022, to December 11th, 2022, on December 13th.
Prevailing Market Conditions Impacting Crypto Firms
The worsening market conditions in the evolving crypto sphere have negatively impacted firms. Notably, Bitfront is one of many crypto firms that has shut down since the outbreak of the bear market. Recall that in mid-October, German crypto neobank Nuri shut down owing to its inability to secure outside investment.
Its CEO, Kristina Walcker-Mayer, lamented the harsh economic and political environment, explaining that funds were difficult to raise and investors were hard to find. Further, the CEO said the insolvency of one of Nuri’s major business partners worsened the situation, leaving the firm with no option but to shut down.
Beyond Nuri and Bitfront, other crypto-oriented projects have shut down amid the crypto winter, including 3AC, Celsius, Ardana, a Cardano-based stablecoin ecosystem, and Orbis, a Cardano Ecosystem Scaling solution. In addition, others firms like Hodlnaut and Vauld have halted their operations.
On the Flipside
- Despite the failure of crypto firms after the FTX fall, Lex Sokolin, head economist at ConsenSys, shares his optimism for crypto. In his view, “prices are not the end goal,” and the market’s current state should not determine crypto’s future.
Why You Should Care
As another crypto exchange falls, there are indications of an extreme crypto winter. Many crypto firms are experiencing liquidity issues, and funds are drying up. Some of these firms have overtly dismissed a large percentage of their workers to save costs.
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