Bitcoin Forum

US bitcoin marketplace Buttercoin is shutting its doors, despite launching just four months ago with at least $1.3m in investor backing.

In a farewell post to customers today, the Buttercoin team announced the service will go offline this Friday (April 10th) at 11pm PST.

Stressing that it was "100% secure and solvent", the Palo Alto-based platform blamed a lack of VC interest for its closure, stating:

"With the dip in bitcoin interest among Silicon Valley investors, we weren't able to generate enough venture capital interest to continue funding Buttercoin."

Buttercoin's nine-person team had raised at least $1.3m from investors including Reddit co-founder Alexis Ohanian, Y Combinator, Centralway Ventures, Google Ventures and Wedbush Securities – though its exact funding total is unclear.

How the fuck can you not run a company beyond four months with $1.3 million.

Seriously, what is it with these people.

How the fuck can you not run a company beyond four months with $1.3 million.

Seriously, what is it with these people.

That will only further erode people's confidence that they have in bitcoin. With that size of funding, I don't know how it can ended up becoming a failed business model but obviously there must be something happening within that we did not see.

1.3 million is comparative peanuts in the VC world. You can burn through that in a few days spending on offices, branding, schmoozing.

Businesses fail constantly everywhere because they're not attractive to customers. At least it didn't steal anything from anyone. If they wanted to survive they should've been as appealing as existing options. For whatever reasons, they're not.

Bitcoiners feel a little bit like arsehole yuppy parents sometimes, screeching when their special snowflake acquires a chipped fingernail. I don't scrap my car when the nearest fuel station closes down.

If they burned 1.3m in a matter of days.  Then that start up was the wrong one to invest in.

Another one bites the dust.


http://www.coindesk.com/bitcoin-marketplace-buttercoin-folds-despite-1-3-million-investment/

SiliconVstreet is losing interest in Bitcoin, investors are losing interest, this is the harsh reality we have to face, espacially the ones who always say wall street big money all the day,  the situation is not so optimistic.

Maybe it was the name. Buttercoin??

It's a shame, I used this exchange a bit and really liked the interface and some of their blog posts, but they never really seemed to attract much volume. I'd speculate they were partly overshadowed by other new US exchanges like Coinbase.

Agreed. But I never saw any promotions by them to attract new users. Even here in Bitcointalk, I hardly ever say any of their offers or discounts. Accept the truth. These guys were not interested in running the site. Their intentions were something else.

some are just investment to cover some other purposes .

buttercoin is this story by any chance from the 1st of April

Unfortunately not. The investors were either extremely careless or stupid to pour in so much money in to a venture which lacked solid credentials. But in the end, the reputation of Bitcoin suffers.

Agreed. But I never saw any promotions by them to attract new users. Even here in Bitcointalk, I hardly ever say any of their offers or discounts. Accept the truth. These guys were not interested in running the site. Their intentions were something else.

There were definitely promos but perhaps they weren't advertised well enough. They had a referral program with signup bonuses, as well as no fee trading (which was slightly misleading as there was still a fee on the bank transfer to fund your account).

Facebook was initially incorporated as a Florida LLC. For the first few months after its launch in February 2004, the costs for the website operations for thefacebook.com were paid for by Mark Zuckerberg and Eduardo Saverin, who had taken equity stakes in the company. The website also ran a few advertisements to meet its operating costs.