[SUI-3183372]

Bitcoin Exchange LocalBitcoins to Close, Citing Market Conditions
LocalBitcoins is suspending the exchange 10 years after its inception because weekly volume has slumped.

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.

In December, early bitcoin pioneer and Libertarian activist Ian Freeman went to trial on allegations of being a ringleader in a bitcoin selling business that used LocalBitcoins.

https://www.coindesk.com/business/2023/0...onditions/

It's a shame to see a platform that we watch grow into a titan of the BTC community fall, but I suppose it was a platform who's primary role was to serve a very immature and juvenile market. A lot of the problems LocalBTC solved aren't necessarily problems anymore. They're still problems, just problems for less people.

Either way, sad day.

[PoLoW]

I used their services alot and i built a good reputation on their site, sad to see it gone.

[Zexi]

I never saw this coming. Started using it while they still had cash offers and been using it on and off.

Welp that's one way to get rid of the "Nigerian Prince" scammers and carders on it. 99% of the Western Union ads is money coming from people who are getting scammed by "Nigerian Princes/Fake Inheritance" scam.

[Secrets]

Crazy to see. I remember signing up back in 2011 and exchanging a lot.

[th3c0rrupt3d0n3]

RIP. They didn't innovate enough and got their share eaten by other services. Binance P2P was the nail in the coffin.

Just logged in to find $100 in bitcoin sitting there which is great. Checking the trade history is hurtful 😂

[shreder]

Regulation is clamping down, their service is necessary now MORE THAN EVER.

[boost]

I quit using them once they implemented kyc but most recently used localcoinswap and its been pretty gud

[Truth]

once they required the kyc scam it was only a matter of time, RIP

[Cameron]

Haven't used them for many years now but LBC was where I purchased my first ever bitcoins back when BTC was relatively difficult to purchase.

Sad times.

[___GS___]

Truly a sad day.
Never ever expected that.
I personally started buying/selling BTC there. Never had any issues, I had profile with trading of 500-1000 BTC.

[Aera]

I guess we'll just keep going and use localcoinswap instead.
It is, indeed, a bitterly cold crypto-winter.

[✔-Elision-]

The more probable reason might be they’re scared while other exchanges are being hit by more regulations/other stuff and more to come and with their declining volume it might not be worth the risk?

[Omniscient]

KYC destroyed their purpose. Not sad to see them go.

[Ke$h]

Truly a sad day.
Never ever expected that.
I personally started buying/selling BTC there. Never had any issues, I had profile with trading of 500-1000 BTC.

Sad 🙁. I also sold my 1st coins there as well. They might get bought out?

[jaytench]

Apologies if this sounds ignorant, but how does a website with no particular overhead costs discontinue?