Ukraine’s Liqui Crypto Exchange Announces Closure Due to Users Denying Changes
A crypto exchange is about to shut down due to a lack of liquidity on the platform. The name of the platform is Liqui.io, and the company has announced on Reddit that the end is near. An official email was also sent to the users.
According to the post made by the company, Liqui decided to change some of its rules recently. The clients should either comply with how things were set to work afterward or then find another platform. Unfortunately, most users decided to stop using the exchange.
This has caused a major liquidity issue as the company was not able to provide enough liquidity for smooth trades without enough clients. Because of this fact, it was unable to keep its doors open to the remaining loyal users. On the Reddit post, the company affirms that it broke our hearts” to shut down the exchange, but there was no choice due to the lack of users.
As the company was already struggling with liquidity even before it all ended, the issues over at Liquid.io were a mark of the bear market. With prices going down, a lot of users were simply not as interested in the market anymore or had left for other companies instead.
Instead of reversing the controversial changes, which, according to a Reddit user that had an account on the company, included a monthly fee to participate on the platform, the company decided to shut down its business for good, a sign that it would be impossible to maintain the profit without charging more money from the users.
How To Withdraw Yor Money
Now, the remaining users will have a total of 30 days to withdraw their assets from the company. While the company does not affirm that the users will lose the money forever after the deadline, it is clear that the chance of this happening is big.
If you take too long, you might still have a small shot of getting your money back, but there is no guarantee of that as the company will shut its site and stop taking care of the money.
In order to do it, the user has to go to the tech support page and ask for a withdrawal, which will be sent out soon. Some people on Reddit seemed to have problems to load their balance page, though.
Exit Scam Accusations
Every time a company shuts down, somebody accuses it of an exit scam. While this does not seem to be the truth, in this case, some people on social media were affirming that Liqui.io was exit scamming them and that one month was not enough time for everybody to take their funds back.
The major problem here seems to be the fact that an exchange named Liqui could not survive without actual liquidity, which is important so that the users can finish their trades.