The P2P marketplace of Paxful is closed due to several departures of managers
The P2P marketplace of Paxful is closed due to several departures of managers
In an abrupt turn of events, the peer-to-peer-bitcoin marketplace Paxful closed its doors for an indefinite period after a number of internal conflicts and regulatory problems have come to light.
The CEO of the company, Ray Youssef, now recommends users of the marketplace to switch to other marketplaces such as Noones.
The end of Paxful
"This will probably be a shock for many," wrote the CEO. "Although I can't tell the whole story now, I can say that unfortunately we have left some important employees."
The executive added that regulatory challenges in the United States have made it more difficult to continue operating. While the country's regulatory authorities continue to put pressure on some of the most important centralized stock exchanges, such as z coin base and Peer-to-peer marketplaces such as z Local bitcoins last year completely closed.
the former cited the "very cold crypto winter" as the reason for the closure. Although the explanation of Paxful does not cite such concerns, data from Coin dancing shows that his weekly global trading volume stagnated below $ 50 million from 2020.
Especially in the United States, the current weekly volume was only about $ 15 million last month. For comparison: The daily volume on coin base is about $ 1.3 billion.
Youssef has taken numerous measures in the past that did not aim to achieve maximum profit for his company. In December the CEO announced The deletion of Ethereum from its platform, citing "integrity". Last week he also
"While we work through these problems, we chose the safest option and ask you to deal with self-custody and trade elsewhere," said Youssef in the explanation on Tuesday.
in a Twitter area After the closure of Paxful, Youssef said that Paxful was forced to close due to a legal dispute with co-founder Artur Schaback.
What about customers?
The CEO explained that the first priority of Paxful is to return funds to customers. Yousef recommended customers to withdraw to self-negotiation wallets and called both Exodus Wallet and Muun-Wallet.
He also offered a simple migration option for customers to Noones-a P2P company that has been committed to supplying the global south. Paxful was particularly popular outside the developed world - especially in Argentina, where more than half of the volume of the last month was generated.
Inflation rate of Argentinia exceeded 100% in February-a problem against which Bitcoin should theoretically fight.
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