Liqui, a crypto exchange based in Ukraine, is shutting down, citing a lack of liquidity, according to a report from Cointelegraph Japan.
Liqui declared it made the call to close all accounts and cease providing services because at the moment, it does “not see any economic point in providing” them in a statement posted on its official website.
The crypto exchange further explained that it has already informed its clients about the issue, and stated that withdrawal of digital assets would be available within 30 days after the message was posted. Liqui also noted that the company cannot guarantee they will maintain their website after 30 days.
Information from crypto data ranking website CoinGecko indicated that Liqui exchange permitted clients to trade Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) pairs, also offering lending and margin trading. On December 30, Liqui’s average daily trading volume amounted to about $3.9 million before plummeting to just below $180,000 on January 12.
Right after the news the exchange had shut down, crypto analyst and host of CNBC’s show Cryptotrader, Ran NeuNer, said in a tweet that he is anticipating more exchanges to do the same in light of the bear market. He said that the exchange infrastructure is very costly to maintain, proposing that most exchanges will not be able to sustain it.
The plunge of crypto markets in 2018 from all-time highs in December 2017 has led to major financial problems at large number of crypto and blockchain firms. At least 340 crypto and blockchain companies were dissolved or liquidated in 2018 in the United Kingdom, while China-based crypto mining giant Bitmain shuttled its Israeli center late last year.
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