Quote from: Ojima-ojo on May 06, 2023, 05:23:06 PM

Quote from: Learn Bitcoin on May 06, 2023, 04:02:56 PM

Not 1-2 months ago. LocalBitcoins announced their closure on February first week. They announced that their service will close on 16 February 2023. The fact is, they were still releasing new features til January 2023. At least this makes me think the decision did not take long. The company decided to close its platform within a short time. According to them, The trading volume in LocalBitcoins has been declining for a long time, and there is no significant market demand for their service. No company will run a business that is not profitable anymore. So, they had to take this decision.

Local bitcoin has been in the exchange business for quite a long term and to see how low volume the exchange has become long before their announced closer it is clear why they were in a rush to close down the exchange.

Trading volume is one of the major ways to check and maintain liquidities and another operational cost, and any business that has low volume will have a high chance of liquidation, so anyone that has a balance on local bitcoin should have withdrawn them by now since the announced closure of the exchange stipulate the durations of time that withdrawal will be open.

The inception of P2P services offered by centralized exchanges like Binance had put them out of business. I used to use their services quite a lot back in the days when there was no Binance or other centralized exchanges with such features, and I never had any issues, but I stopped using the platform later for some reason that I don't remember right now.

Just like me, a lot of people migrated from their platform to other more convenient platforms that provided the same services with lower costs and probably much quicker and safer ways and that became the reason for their closure probably.