Ukraine-Based Digital Asset Exchange Liqui Shuts Down
The Ukraine-based digital asset exchange Liqui announced in a blog post on January 28, 2019, that it is shutting down its services and that the exchange will not be able to provide liquidity to enable trading on the platform.
Further, the announcement read as follows,
We gave you the right to decide whether you want to be with us in our Crypto Exchange journey by accepting the changes.
The above statement brings us to the conclusion that the digital asset exchange had brought in some policy changes to manage the liquidity issues that it had been struggling with for some time.
Such policy changes required support from its loyal user base, however, the announcement points towards the fact that the exchange was not able to garner the same.
The persistent bear trend that ailed the crypto markets in 2018 has continued its dominance even in the new year. Crypto exchanges, as a result, have been finding it difficult to survive the market turmoil.
We are of the view that the process of devolution of the Liqui exchange, which ultimately led to its closure, must have begun with the decline in the prices of the major cryptocurrencies.
By the end of 2018, Liqui had delisted as much as 25 digital coins from the platform within a span of 30 days.
After the announcement of shutting of the operations, Liqui has informed its users that they can withdraw their funds from the exchange through a support desk. Users can do the same within a month as the support desk will stay open until then.
During the time of writing this news, based on the 24-hour trading volume, the exchange was ranked at number 206. The exchange had as much as 182 crypto coins listed on the platform with trading volumes of USD 23,239.
With the crypto markets experiencing a slump, digital asset exchanges have been finding it difficult to maintain the requisite liquidity. Security is also one of the top concerns of the users.
An assessment study by the South Korean Ministry of Science and ICT has revealed that only 7 out of the 38 crypto exchanges studied are complying with the necessary security requirements.