Crypto Exchange Bitfront Closes Citing Challenges, Not FTX

Crypto exchange Bitfront announced on its site that it has closed operations. Bitfront is built on Line blockchain.

In the statement, Bitfront said: “Despite our efforts to overcome the challenges in this rapidly-evolving industry, we have regretfully determined that we need to shut down Bitfront in order to continue growing the Line blockchain ecosystem and Link token economy. Please note that this decision was made for the best interest of the Line blockchain ecosystem and is unrelated to recent issues related to certain exchanges that have been accused of misconduct.”

Bitfront was probably referring to the collapse of FTX FTT/USD and Alameda Research, leaving a shortfall of “at least $3.1 billion.” This is just the latest in networks and crypto exchanges that have suffered from exposure to FTX.

Another crypto exchange, BlockFi, announced earlier this month that it had halted withdrawals, citing “significant exposure” to FTX.

FTX filed for bankruptcy and former leader and co-founder Sam Bankman-Fried has been replaced with a new CEO, John Ray.

FTX stated that Bankman-Fried no longer speaks for the company, but this hasn’t stopped him from making many colorful statements, as in his recent Vox interview, in which he sounds a bit like a supervillain in his professed indifference.

The sinking of crypto exchanges pointed to a liquidity issue within the industry, which is still young and quite small compared to traditional finance. In such a small ecosystem, one large collapse can have a ripple effect. Now, people are wondering, “When will it end?”

Daryn Soards, co-founder and CEO of UX Network, had a perspective that was at least grounding if not comforting. He said in an interview with Benzinga, “I’d say this is the bottom. Market self-regulation. It’s the game changer. Look at any financial market over history. This will kill off the weak.”

According to its website, Bitfront formerly served “as the main exchange platform for the core products in Line’s blockchain business.” According to the company's statement, withdrawals can continue to be made until March 31, 2023, at 05:00 (UTC).

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