LocalMonero is closing: causes and consequences
Date: 2024-05-10 Author: Henry Casey Categories: CRYPTO PAYMENTS
LocalMonero, a platform for trading the anonymous cryptocurrency Monero (XMR), has decided to cease operations after four years of operation. The news of the closure of the portal caused a wide resonance in the cryptocurrency user community.
Closing process
The platform has already stopped registering new users and has suspended the publication of Monero trading advertisements. Starting May 14, it will completely disable all cryptocurrency transactions, and on November 7, the P2P exchange website will be closed. Users are advised to withdraw all funds before this date to avoid potential problems accessing their assets.
Reasons for closure
LocalMonero representatives did not disclose specific reasons, noting only “internal and external factors” that led to this decision. However, it is likely that the closure is due to pressure on anonymous cryptocurrencies such as Monero and Zcash (ZEC) from regulators and centralized exchanges.
Impact of the decision of large exchanges
The decision of major exchanges such as OKX, Binance and Kraken to exclude Monero from their trading pairs has had a major impact on the value and liquidity of the token. This action greatly reduced interest in trading Monero and caused concern in the cryptocurrency investor community.
Implications for the market
The large-scale removal of Monero from centralized exchanges has led to a decline in trading volumes for the cryptocurrency and created uncertainty about its future. This has been a major challenge for the Monero community and has forced platforms like LocalMonero to rethink their strategy and next steps.
The closure of LocalMonero served as another example of how decisions by centralized exchanges and regulators can impact cryptocurrency projects and the ecosystem as a whole. This highlights the need to further develop decentralized and secure cryptocurrency exchange platforms that provide anonymity and freedom of financial transactions.
