#libra#Binance
16/10/19 10:43 UTC-5

Why altcoin exchanges stop working: dates, reasons, withdrawals

Reasons for closures of altcoin-trading exchanges
Reasons for closures of altcoin-trading exchanges

On October 7, cryptocurrency micropayment service TipJar stopped operating. The reason is low user activity. The project developer noted that there is no point in paying minimal fees for a server that people do not use. TipJar is another example that demonstrates a decline in interest in altokin exchanges in 2019. The platforms continue to close.

 

Coinexchange. io

About the Exchange. The platform was launched on January 9, 2016 in Australia. The main advantages of the platform included the absence of verification and the simplicity of the interface. Coinexchange.io made it easy for newbies to trade. The platform supported 700 cryptocurrency pairs, including BTC, ETH, BCH ABC, and LTC.

Closing. On October 1, 2019, the board of directors of the cryptocurrency exchange CoinExchange.io announced on Twitter that trading and deposits would be stopped.

Reason for closing. The platform’s team noted that the termination of work was not due to technical problems or the hacking attacks. CoinExchange.io executives have noticed that the cost of maintaining the required security level is higher than the profit margin. The team members, however, added that they would resume trading if market conditions became favorable for work.

Withdrawal of funds. CoinExchange.io users are advised to withdraw their funds by December 1, 2019.

  • To withdraw funds, the user needs to go to a tab called “My account.”
  • Select the “Withdrawals” section, which provides instructions.
  • Confirm the action by clicking the link that will appear in the email the user provided.

During withdrawals, the user pays a commission. The size of the commission depends on the specific cryptocurrency. For example, to withdraw Tron, one pays 0.00300000 TRX.

 

Escodex

About the Exchange. The platform started operating in 2018 in Estonia. Escodex supported coins that rarely appeared on decentralized exchanges: zerocoin protocol, cryptonight / cryptonite lite / cryptonite classic, omnicore coins. Traders did not undergo verification and could immediately log in to start trading. Moreover, users were guaranteed to save money.

Closing. On September 18, the Escodex team announced on Twitter that the platform was shutting down on October 15.

Reason for closing. The team announced that it was closing Escodex because there were no trades on the platform.

Withdrawal of funds. Escodex management recommends that users withdraw their funds by October 15 at 4pm Central Standard Time.

  • To withdraw the money, the trader pays a commission. This is a fixed amount that depends on the specific cryptocurrency.
  • The exchange team said it would not be not responsible for the lost money and the lack of access to the wallets after the deadline.

 

DC-Ex

About the Exchange. The exchange was founded in 2017. The exact address of the platform’s office was not stated in official sources. The members could engage in P2P trading: when two traders agree to sell and buy cryptocurrency. Traders were also guaranteed minimal fees and rewards in the form of a YashCoins coin.

Closing. The official website of the platform announced that the exchange was shutting down.

Reason for closing. A message on the site of the exchange team noted that the platform ceases to operate due to the lack of trading activity.

Withdrawal of funds. The team asked the users to check their balance sheets and contact customer support. The email address is listed on the platform’s website.

  • The traders will not be able to request funds after October 31, 2019.
  • DC-Ex users pay a fee to collect the money. If a trader wants to withdraw, for example, Bitcoin, he or she leaves 0.0025 BTC.

 

Bitcoin.Co.

About the Exchange. The platform was founded in 2013 in Thailand. It is the first exchange regulated by the Securities and Exchange Commission in the country. The advantages are the high level of security and working with fiat money. According to CoinMarketCap data, at the beginning of September, the volume of trading was at $15 million.

Closing. The executives have announced that they would close Bitcoin.Co on September 2, 2019.

Reason for closing. The platform’s team has indicated that they wanted to do other projects, so they stopped Bitcoin.Co. Deposits could not be made starting from September 6, and trading has ceased after September 30.

Withdrawal of funds. Traders are advised to withdraw money by November 1, 2019. After that, the platform’s site will only operate to connect with users.

  • The team stated that it guarantees 100% refund to users.
  • Withdrawal requests are processed within 5 minutes.
  • If the amount is large, it is taken from the “cold storage.” The funds will be transferred to the specified wallet address within 12 hours.
  • The commission is 0.25% of the amount of the transfer.

 

Why exchanges shut down

The developers of each of the mentioned exchanges closed the platform for the same reasons: the trades ceased to be active. There were no hacking attacks or technical issues.

The following factors influenced the decrease in trading activity:

  • Lack of traders through competitors. The cryptocurrency market attracted 8-10 million traders at the end of 2017, when Bitcoin was worth $20,000. During that period, traders registered accounts and started trading. However, they were interested in exchanges such as Binance, Huobi, and Poloniex because of the user-friendly interface and new coins.
  • Inability to trade in a “falling” market. Experienced traders make a profit even when the market is “falling.” Newcomers, however, rarely succeed. When Bitcoin decreases in price, altcoins follow. Market participants simply did not take a risk to make deals.
  • Absence of new products on the exchange. If the exchange adds altcoins with a large community, it will be of interest to traders. The mentioned platforms have not added any new products lately.

 


Time will show if the exchanges will keep on closing in the coming months.

Editor: Daria Mukhina

#exchanges #altcoins #TipJar #Bitcoin.Co #CoinExchange.io #Escodex #DC-Ex

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