This article was originally posted on The Bitcoin Magazine - the oldest and most established source of news, information and expert commentary on Bitcoin, blockchain technology and the digital currency industry.
The exchange assured users of a safe transition process for their funds, saying it would return deposits and holdings to customers who register for refunds.
As for specific reasons why the exchange is terminating its services, the note points to “negative internal and external influences.” However, a report from BusinessKorea pointed to more specific reasons.
“Prixbit, a cryptocurrency exchange which closed its operations as of Aug. 9, has failed to overcome its financial difficulties and suspended its cryptocurrency trading services,” according to the report. “Many investors criticized the shutdown of the exchange as they were worried about withdrawing their investments.”
“A low transaction volume is another reason Korean blockchain startups avoid listing on domestic exchanges,” per BusinessKorea. “Only five or six South Korean exchanges rank among the top 100 in the world in terms of transaction volume. It is not exaggeration to say that 97 percent of domestic exchanges are in danger of going bankrupt due to their low volume of transactions.”
The post As Part of Larger Trends, South Korean Exchange Prixbit Closes appeared first on Bitcoin Magazine.