In an announcement earlier yesterday, Ukraine-based cryptocurrency exchange Liqui told its remaining loyal users that it can no longer provide liquidity to support trading activities on its platform.
As implied from the statement in the announcement, “We gave you the right to decide whether you want to be with us in our Crypto Exchange journey by accepting the changes”, it appears that the exchange had been struggling with liquidity for quite a while, and had resulted in some form of policy changes that depended on the consolidated support from its user base. However, the outcome may have come short of the expectations of the operators of the exchange.
Amid the prolonged bear market trend of 2018 which spilled into 2019, many crypto businesses have found it hard trying to survive. The decline in the service operation of the exchange may have started alongside the decline of the entire crypto market in general. However, it got intense towards the latter part of 2018. Within the space of a month, it had delisted 25 crypto assets from its trading platform.
Further, the exchange has made provisions for users to withdraw their funds with the exchange by going through a support desk. They have also assured that the process will continue for the next 30 days.
At press time, Liqui was ranked #206 based on 24-hour volume and had a listing of about 182 cryptocurrency trade pairs with volumes of USD 23,238 according to data from CoinMarketCap.
Many exchanges have been having it hard to maintain liquidity, as digital assets themselves have had it tough this past year. Security is also among the top concerns.
A South Korean assessment of cryptocurrency exchanges found only 7 out of 38 exchanges meeting the required security expectations. It is worth noting that there are about 230 cryptocurrency exchanges tracked by CoinMarketCap.
Recently, a proof of keys event started by Trace Mayer led to the speculation of alleged freezing of users accounts by HitBTC exchange, although the accusation was denied by the exchange. However, a step back by traders to reevaluate their options would help them apply due diligence before proceeding to decide on which exchange to trade on.
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