Another cryptocurrency exchange fails to survive the crypto winter


Recently it was announced that liquidity issues forced the small Panama-based cryptocurrency exchange, CoinPulse, to close for indefinite maintenance, starting from Feb 1. The exchange suspended all trading operations and stopped accepting deposits.

Customers have until Feb 7 to close their accounts and withdraw funds. CoinPulse provides clear instructions on how to claim the money and what to do in case of error messages or issues.

As of now, CoinPulse will officially be the 3rd cryptocurrency exchange to be shut down due to the crypto winter and bear market.

View their announcement tweet below:

What actually going on?

As it turned out, the exchange had already been in trouble for some time. The owners tried to raise investment capital to keep the business alive but failed to do so. It’s not rare to see that blockchain companies are struggling to convince investors to invest in their company with the current market trends.

Now, the company is actively looking for investors ready to acquire CoinPulse with all its belongings including the website, trademark, platform, and 50 million CoinPulse Tokens (CPEX).

As such, the exchange may return from hibernation mode if there is a willing buyer but again, in this market, the chances are slim.

This month, the CoinPulse token lost nearly one-third of its value in a single day on Jan 30 and over 70 percent in the recent 30 days. The token is tradable only at CoinPulse exchange.

More about CoinPulse

For those that aren’t aware of CoinPulse, CoinPulse is a Panama-based trading platform for digital assets founded in March 2017. It offers trading services for CPEX, Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) via its dual offering of an Instant Exchange for quick-trade orders and an Advanced Exchange for sophisticated users.

CPEX is based on ERC-20 standard. Users could use CPEX to pay transaction fees with a 70 percent discount.

The exchange claims that up to 90 percent of user funds are kept in cold storage while multi-signature wallets and two-factor authentication ensure a high level of security.

CoinPulse is the third cryptocurrency exchange to shut down in the last seven days. Canadian cryptocurrency exchange QuadrigaCX went to maintenance without a word of notice on Jan 29 and applied for creditor protection to avoid bankruptcy two days later. Additionally, Ukrainian cryptocurrency trading platform Liqui stopped operations due to lack of liquidity.

The bear market is real..

 


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Samuel Tan

Samuel Wan has been an analyst and cryptocurrency evangelist for the last few years. Previously he worked as a consultant for a Big 4 consulting firm and is passionate about how blockchain will make an impact in the world. You can contact Sam at s@cryptomenow.com

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