It appears that peer-to-peer trading opportunities are decreasing. It constitutes a risk to us if a well-known P2P exchange closes. Because peer-to-peer trade is replacing centralized exchange like Binance is currently conducting significant p2p trade. There would be other exchanges opening up for peer to peer trading. However, LocalBitcoin was a realizable P2P exchange. I don't see why a peer-to-peer exchange would shut down. I'm not certain, but I'll guess it's just for a little enforcement.
Man, I don't even think what localbitcoins was offering was anything to do with p2p. Well it may have seemed like two parties were involved in direct trade, but then there was a third party which was localbitcoins
They could choose to freeze the funds any time they wanted, since the customer wallets were custodial. To be honest, they were more like Binance, especially when they made KYC verification mandatory.