Crypto Exchange Liqui is Shutting Down for Lack of Liquidity but Still Hopeful
Cryptocurrency exchange Liqui announced that it will be shutting down for “no longer able to provide liquidity for the users“, after a year and a half of operation.
The announcement on its website released on Jan.28 reads that users have 30 days to withdraw their assets, failure to withdraw assets within the stipulated time frame will incur a fee.
Liquid, launched in mid-2017 based in Ukraine, rose to fame for its fast pace in listing small coins. Crypto investors comment it as a “good exchange to get random shit coins and they had coins way before anyone else.”
In its early days, the exchange hovered around top 30 in ranking by trading volume and at one point made into the global top 20 in Jan 2018, but later it kept falling amid the crypto bear. In the last 24 hours it has seen a little over $100,000 in trading executed.
Another one bites the dust
Liquid is the latest company to be taken down in the midst of crypto winter. The exchange has released some signals of its falling, delisting a lot of coins in the past few months, including some of their top 10 volume coins, which raised users’ concerns of possible existscam back then.
It has been a slightly rough start for crypto exchanges in 2019. Earlier this month, Italian cryptocurrency exchange BitGrail declared bankruptcy after a tough year of losing $195 million worth of customers’ cryptocurrencies.
Smaller exchanges such as Liqui, barely making enough to keep afloat, are not as lucky as big exchanges, though they are also weathering the winter, laying off a majority of the workforce in the past few months.
With reduced liquidity on these small exchanges, traders are abandoning them for bigger ones, or just keep cryptos in their wallets. This further worsens the already bad situation for small exchanges.
Some users on Reddit expressed their worries of exchange’s massive delisting coins and frequent hack incidents
Nevertheless, the team is still hopeful that they will return, but also acknowledged the reality that it “depends on the market which has significantly changed since 2017”, ending up with a quote by Marianne Williamson –
“Every ending is a new beginning. Through the grace of God, we can always start again”.