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Crypto Crashes Cause Thai Bitcoin Co. Ltd to Stop Operations

Nicholas Otieno

Posted on September 6, 2019 01:16

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Crypto exchanges are more expensive and harder to run than they look. Thai Bitcoin Co. Ltd wants to close its business. But it’s not alone as more than 36 cryptocurrency exchanges already have thrown in the towel and shut down their shops because they found it difficult to stay profitable.

I started the month of September off on a bad note after realizing that Thai Bitcoin Co. Ltd intends to terminate its services.

Despite being one of the famous crypto exchanges in Thailand, Bitcoin Co. Ltd announced that it will shut down its cryptocurrency trading services. The exchange didn’t mention a specific reason for such a sudden decision. It simply said that it will concentrate on other business opportunities.

The company clarified that it will close down all its trading services on 30th September 2019, and therefore requests its traders to withdraw their funds before the date.

Although the firm did not specify why it was pulling out, it seems that the effects of an enormous drop in the price of cryptocurrencies (crypto crashes) could be the key factor that pushes the giant out of the market.

Besides Thai Bitcoin Co. Ltd, there are similar crypto exchanges that shut down operations due to related financial difficulties.

Based on my research, here are some of the crypto exchanges which closed their crypto trading services, the same scenario as Thai Bitcoin Co. Ltd.

Cryptokart

An Indian-based crypto exchange startup terminated its operations in August 2019. Gaurang Poddar, the founder, stated that the general interest in cryptocurrency has flopped in India.

Cryptocurrency Exchange BTCC

In November 2018, the Hong Kong-based crypto exchange BTCC closed down its mining pool business after four years in operation. The crypto mining company cited business adjustments as the reason for its closure. Crypto crashes could one of the underlying factors, or other financial challenges.

Comkort

An Estonian based exchange completed its Beta testing in March 2014, but closed its operations in July 2014.

Coin-Swap

A Hong Kong-based startup shut down its digital asset exchange in May 2014 because of inadequate growth as a result of persistent crypto crashes.

Yacuna

A UK-based cryptocurrency exchange traded Dogecoin, Litecoin, and Bitcoin for GBP and Euro. But the firm closed its services in November 2015.

Virtex

The exchange firm traded many currencies, but turned out to be a scam. In February 2015, the company claimed that it was hacked and later relaunched a new Excoin trading platform.

Bitspark

A Hong Kong-based Bitcoin exchange terminated its exchange in April 2015 to concentrate on its remittance services.

Harborly

A Texas-based exchange shut down its operations in October 2015, citing that the closure was influenced by a security-related incident, hack, or fraudulent activity.

Take Away

Most closures of these exchanges are due to hacking, criminal activities, bankruptcy, and other financial difficulties in the sector. The reality is that we are seeing the maturation of the cryptocurrency sector and part of that are crypto crashes, failures, and other messes.

Nearly each technology, which I’ve observed, has come into a mass adoption and undergone such rising pains. Most crypto exchanges easily get into corruption and criminal activities, get hacked, go bankrupt, or fail to make a profit. Perhaps, lets wait and see what’s next.

Nicholas Otieno

Posted on September 6, 2019 01:16

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Source: Quartz

The race to make cryptocurrency trading convenient has suffered through fits and starts. Although buyers can now easily sign...

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