With the ongoing fluctuations of the Crypto industry, many forms are exiting the same. Many large Cryptocurrency firms are finding it hard to survive amidst this harsh bearish phase of the market. And it seems that this phase is here to stay for a long time. To protect themselves from its conditions, the firms are seeking alternative solutions as well. The potential of financial innovations like bitcoin and blockchain to completely transform the finance sector has been lauded.
But, among these, some companies are deciding to shut down their business forever. Bitfront is on the top list of such firms which are about to exit the market soon. It will close all its operations by March of the upcoming year! Let’s dive into this blog and see what made Bitfront take this decision!
Reasons Behind Bitfront’s Exit
This recent announcement by Bitfront has come again as a shock for the community. Many reasons have led to this decision.
The firm announced that they are unable to cope with the bearish condition of the market. But, apart from this, there is a mixture of other factors that are leading to this exit. The crash of FTX and the liquidity crisis is another major reason for this harsh decision.
The downfall of FTX is the prominent reason for the bearish trend in the Crypto industry. Whether it be through direct or indirect ways, the crash has been adversely affecting many firms. Bitfront has not made any official statement about FTX being its reason for exit from the industry. But, the step proves it all!
More On Bitfront And Its Associated Firms
Bitfront, which is a US-based Cryptocurrency exchange, was backed by Line Corp. The main aim of this Cryptocurrency firm was to let users store their digital assets.
Also, they could trade their assets with full safety on this platform. And, it was successful in fulfilling the objectives too! But with the recent blow, the company will shut down its operations forever.
Despite this announcement by Bitfront, Line Corp says that it will continue to be in this industry. And, it will pursue its efforts and fulfill its commitments, regardless of the unfavorable conditions in the market.
You can see the announcement of shutting the firm which is present on Bitfront’s official website. The firm highlighted the fact that with the growth of the Crypto industry, many challenges are coming up. And, these changes are quite hard to follow. Due to these factors, the firm has concluded with a harsh decision.
Another reason that is adding to its withdrawal from the industry is related to Line Corp. They had to stop Bitfront so that the LINE Blockchain and its entire ecosystem could grow. Also, the growth of the economy of LINE tokens is considered.
By stating this, they are making it clear that shutting down Bitfront does not have any link with the FTX crash. And, this indicates that the whole move is due to the bearish trend in the market.
What Is The Condition Of The Market Now?
The collapse of the FTX has made the situation worse for the industry. Though it is trying to revive from the crash, it is going to take some time to get back to its previous position. The liquidity crisis has made it difficult for its users to withdraw huge amounts of funds.
Many firms are trying to avoid the collapsing FTX, as they have zero interest in FTX. Because, FTX is responsible for the declining condition of the industry, and made it even worse.
Now, the community is looking at when the bearish phase is going to end. A user on Reddit shared that the present bear market is the second-largest one in the market. Also, it can be the longest phase so far. But, experts expect it to get over by the start of the upcoming year.
The new year will show you how many exchanges you can deal with. Because FTX has been going through a liquidity crisis. And, Bitfront will shut down by March of next year. More exchanges may add to the list, only time can tell!
Conclusion
With Bitfront closing its business, you will find one option less in the Crypto industry. While choosing an exchange, make sure you check how reliable the platform is!