LocalBitcois is a well known platform worldwide, today I want to give a really important news because it is interesting the operation or the disadvantages of centralized vs. decentralized things, many people know what has happened with FTX and this is very clear today, also what has happened with LUNA, Are cryptocurrency investments really safe?
This is what is going on with LocalBitcoins
I think this is happening almost the same with FTX, but the case of FTX is very extreme, let's dig into this a little bit more and find out what is really going on. The company gave a communication to all users to withdraw their funds as soon as possible, I think all users have a deadline of at least 1 year to do it, I mean the company wants all users to withdraw their funds as soon as possible, but why this is happening? Let's investigate a little more.
LocalBitcoin assures that it has tried to maintain its services but this has been impossible, it is best to withdraw the funds as soon as possible.
We can mention that the cryptowinter is lurking with the big companies, one of them is LocalBitcoins.
Today February 9th LocalBitcoin announced the closure of its company, the services are no longer available and this has worried its users and investors, taking into account that it is a company that has been offering services for more than 1 decade.
I have investigated in depth what is happening with LocalBitcoins and it is basically the fall in the price of BTC, but considering that a few months ago the price of BTC was much lower, even touched the price at 16,000 usd, I think this is not the main reason but still we must take into account that the crypto winter is affecting large companies.
LocalBitcoins users are withdrawing their funds at the moment, people who had funds in LocalBitcoins are really very worried and the company wants all its users to withdraw funds as soon as possible, it is not known what may happen later.
Is the cryptowinter really affecting LocalBitcoins?
We really have to accept that this platform has been the most used, it is even a pioneer company in the p2p exchange of BTC to fiat currency.
Many people around the world have used this platform to exchange BTC to fiat currency, we must remember that nothing in the world of cryptocurrencies is really sustainable, that is why we recommend a lot of discretion when investing in cryptocurrencies and always do it at your own risk, I think that investments are really very risky and especially when we talk about cryptocurrencies.
Conclusion
From my personal opinion working with cryptocurrencies I must mention that all centralized applications do not stand the test of time, what I mean is that it is very difficult for them to be really sustainable and for this simple reason we must be very careful, but what about Binance? Many investors are in this application investing money effectively and it is very possible that someday it will stop offering its services, the same happens with Hive Blockchain dApps, it is not known if really all the applications are really sustainable and we must be very careful with this.
Copyright Disclaimer: Everything that is exposed here is for entertainment and educational purposes, I think you should do your own research and especially if you want to make an investment, I am not responsible for money lost, I also remember that all images used in this blog article are my property or simply I have the necessary commercial rights, thank you very much for your attention, have a nice day.
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I remember localbitcoins being a place to find people in your local area to buy and sell Bitcoin with. Then it went all KYC. This is the end of an era, and actually and opening for another opportunity to pop up, lol.
Nice article, I did not really why are they asking you to withdraw? Are they forced to close down because of regulators?
If they did not have your money they wouldn’t ask you to withdraw it right? (Cuz you wouldn’t be able to). Interestinf