Local Bitcoin stopped service!

[shasan]

I noticed there was an email that I received earlier but didn't go to the details. Today I came to know they have stopped their service.




And today I have visited their sites and came to know they have discontinued their service.


Do you know why they stopped their service?

[1713996201]

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[Charles-Tim]

What after localbitcoins.com shutting down
Localbitcoins closing down

Do you know why they stopped their service?

Read the first link

What most people think is that there are many exchanges that are now p2p which are centralized exchanges that people are using most. Localbitcoins went from no KYC exchange to a KYC exchange which makes some people to leave the exchange. Localbitcoins customers reduced, and also the bear market which is another thing to consider.

No other reason in my opinion than their business is shrinking.

True p2p exchanges are not centralized exchanges, they are decentralized, but I just used it that way for you to understand.

[Little Mouse]

Do you know why they stopped their service?

I was a hub for bitcoin USDT buyers and sellers in my local community. If I take that into consideration, after Binance and Kucoin implemented the so-called p2p, I started to lose customers. my daily volume was dropping significantly and at some point, I was forced to stop the service because it wasn't getting me any good profit. The same goes for localbitcoins too I think. They can't generate enough profit as they put effort. As long as there is domination from Binance and Kucoin, I don't think websites like local bitcoin can't grow much.

[yhiaali3]

Yes, unfortunately they have announced the suspension of their services since the beginning of last month. Many users, myself being one of them, felt sorry for the closure of this beloved decentralized exchange.

Arguably the oldest peer-to-peer exchange for Bitcoin, many users bought their first Bitcoin through LocalBitcoin so there are emotional connections with this exchange.

Certainly, the decision to close was not an easy matter, given the difficult conditions experienced by LocalBitcoin as a result of the bearish market on the one hand, and the control of Binance on the P2P market on the other hand.

[SushiMonster]

It can be frustrating and disruptive when a service you have been using for years suddenly closes down due to operational difficulties. Having contingency plans and being open to exploring alternative services or solutions in such situations is essential.

Keeping a backup plan in case something goes wrong with your primary service is always a good idea. This can involve researching and testing out alternative options well in advance so that you have a plan B ready to go if needed.

Additionally, keeping an eye on industry news and trends can help you stay informed about the most stable and reliable services. This can help you decide which services to use and which to avoid, like P2P exchanges or something in your country.

It's sad, but change is inevitable, and it's essential to be adaptable and open to new solutions when necessary. While switching to a new service can be frustrating, it can also provide an opportunity to explore new tools and processes that may be more effective for your needs.

[albon]

I noticed there was an email that I received earlier but didn't go to the details. Today I came to know they have stopped their service.

Indeed, this was the worst news this year. LocalBitcoins was one of the best, leading, and most reliable P2P platforms in the market, which has lived for a long time for more than ten years. I believe that the reason for its closure is the decline in offers on the platform, which does not cover the burden and expenses of the platform, as it was unable to overcome challenges in the endless cold winter. Still, fortunately, there are other good alternatives where LocalBitcoins customers can now withdraw their bitcoins to another platform. There are platforms that we can deal with without KYC. Still, we have to do our research and learn about the precautions of the alternative platform in the event of an accident and learn about the solidity and strength of its team in the face of challenges, so we don't wake up to the news of its closing.

[Husires]

You can see some alternatives here List of P2P/no-KYC exchanges
They announced their closure for several days, and almost everyone tried to find out the reason, but it is a perfect end to a platform that was part of the early days of Bitcoin. You will find some alternatives, and I hope they are as good as they are.

Bitcointalk currency exchange is also a good alternative place>

[PX-Z]

LocalBitcoins was one of the best, leading, and most reliable P2P platforms in the market, which has lived for a long time for more than ten years.

They become one of the best, before, yes. But everything changed after they required KYC on their users. Their users go to the alternatives.
So far most crypto business that stops their operations really because of the very long bear season yet new competitors are still coming out.

[CoinEraser]

Do you know why they stopped their service?

I think they just lost too many customers to other exchanges. In addition, the introduction of KYC was certainly the beginning of the end. The whole KYC process has repeatedly led to problems and some users have lost their bitcoins as a result. There are still reports that people could not complete the KYC process and their bitcoins were frozen as a result. Especially now that localbitcoins has ceased operations, these bitcoins are probably lost forever.

Even though localbitcoins used to be really good, the closure will certainly leave a bad taste in the mouth for many people. 

[virasog]

Do you know why they stopped their service?

I think they just lost too many customers to other exchanges. In addition, the introduction of KYC was certainly the beginning of the end. The whole KYC process has repeatedly led to problems and some users have lost their bitcoins as a result. There are still reports that people could not complete the KYC process and their bitcoins were frozen as a result. Especially now that localbitcoins has ceased operations, these bitcoins are probably lost forever.

Even though localbitcoins used to be really good, the closure will certainly leave a bad taste in the mouth for many people.  

I guess local bitcoin was the early P2P service where people can exchange their fiat money with bitcoin. I also used Local Bitcoin in my initial days when I came to know about bitcoin.
However, later the exchange integrated the P2P system into their exchange, and especially when Binance started their P2P service it was virtually the end of these third party service providers. Why would anyone come to local bitcoin fist, exchange their fiat money for bitcoin and then transfer it to Binance (paying a withdrawal fee too). Binance solved this by introducing its own P2P and making the process simple. Yes, with binance you have to do the KYC but those who trade on binance already have done their KYC.

[Pmalek]

I was a hub for bitcoin USDT buyers and sellers in my local community. If I take that into consideration, after Binance and Kucoin implemented the so-called p2p, I started to lose customers. my daily volume was dropping significantly and at some point, I was forced to stop the service because it wasn't getting me any good profit. The same goes for localbitcoins too I think. They can't generate enough profit as they put effort. As long as there is domination from Binance and Kucoin, I don't think websites like local bitcoin can't grow much.

I don't see big differences in what KuCoin/Binance calls P2P and what LocalBitcoins was offering.

- LocalBitcoins was centralized. Binance and Kucoin are centralized.
- LocalBitcoins requires KYC. Binance and Kucoin require KYC on their P2P platforms because fiat is involved.

Was it a fee issue? Did LocalBitcoins charge too big of a fee that made them lose their customers in the end?
I assume there is a withdrawal fee when you finally want to withdraw your coins from the site. That's also true for Binance and KuCoin. 

[Little Mouse]

I don't see big differences in what KuCoin/Binance calls P2P and what LocalBitcoins was offering.

- LocalBitcoins was centralized. Binance and Kucoin are centralized.
- LocalBitcoins requires KYC. Binance and Kucoin require KYC on their P2P platforms because fiat is involved.

Was it a fee issue? Did LocalBitcoins charge too big of a fee that made them lose their customers in the end?
I assume there is a withdrawal fee when you finally want to withdraw your coins from the site. That's also true for Binance and KuCoin. 

I don't think it was fee issue. Previously, people had to use Localbitcoins + Binance/Kucoin, both platform. When you have the same benefits from both platform and you have to use Binance/Kucoin for trading, why would they visit Localbitcoins? They now can use Binance/Kucoin for trading, p2p etc. Some customers forgot localbitcoins for that and getting new customers is hard for them when Binance and Kucoin has the same privileges and of course Localbitcoins don't have that enough investment as of Binance and Kucoin when it comes marketing. All these hit Localbitcoins together, same as me too lol. I miss that old good days where I could easily make some extra sats by buying/selling bitcoin/usdt. After Binance and Kucoin launched, I barely got some good deals.

[CoinEraser]

-snip-

I guess local bitcoin was the early P2P service where people can exchange their fiat money with bitcoin. I also used Local Bitcoin in my initial days when I came to know about bitcoin.
However, later the exchange integrated the P2P system into their exchange, and especially when Binance started their P2P service it was virtually the end of these third party service providers. Why would anyone come to local bitcoin fist, exchange their fiat money for bitcoin and then transfer it to Binance (paying a withdrawal fee too). Binance solved this by introducing its own P2P and making the process simple. Yes, with binance you have to do the KYC but those who trade on binance already have done their KYC.

Yes, Binance has certainly also caused localbitcoins to lose many customers. Either way, localbitcoins was interesting for many beginners because they didn't ask for a KYC at the beginning. In the German-speaking local board, localbitcoins was often recommended at the beginning, but that changed with the introduction of KYC. Either way, I agree with you. Binance was certainly also a big factor that localbitcoins had to shut down and is just too dominant in the crypto market. Hopefully there won't be any problems like with FTX at some point. 

[KingsDen]

Do you know why they stopped their service?

I was a hub for bitcoin USDT buyers and sellers in my local community. If I take that into consideration, after Binance and Kucoin implemented the so-called p2p, I started to lose customers. my daily volume was dropping significantly and at some point, I was forced to stop the service because it wasn't getting me any good profit. The same goes for localbitcoins too I think. They can't generate enough profit as they put effort. As long as there is domination from Binance and Kucoin, I don't think websites like local bitcoin can't grow much.

This is a honorable way to bow out of business than forcing it to continue and eventually end shamefully. It is obvious that localbitcoins must have lost huge percentage of customers and that is forcing them out of business.
My concern is that localbitcoins has gathered a community for more than a decade, how could they possible abandon the community. Or do they have any special plans of returning in the future?
I mean the domain is somewhat popular and would be in a great demand maybe for a related businesses also.

[Little Mouse]

My concern is that localbitcoins has gathered a community for more than a decade, how could they possible abandon the community.

My previous reply has such a point that you may haven't noticed. Do you use centralized exchanges? It's not a question for you but in general. You may not use centralized exchanges but most people do. If you use centralized exchanges, you must have been with Binance or Kucoin unless your jury doesn't allow them. If you have the opportunity to trade BTC, ETH, LTC in Binance, would you use Binance for BTC and Kucoin for ETH? No of course. You would only use Binance or Kucoin. When Binance and Kucoin started P2P, why would people use one more extra website? The communities in LocalBitcoins and Binance are almost same which caused localbitcoins users to be diverted into Binance and Kucoun.

[KingsDen]

My concern is that localbitcoins has gathered a community for more than a decade, how could they possible abandon the community.

My previous reply has such a point that you may haven't noticed. Do you use centralized exchanges? It's not a question for you but in general. You may not use centralized exchanges but most people do. If you use centralized exchanges, you must have been with Binance or Kucoin unless your jury doesn't allow them. If you have the opportunity to trade BTC, ETH, LTC in Binance, would you use Binance for BTC and Kucoin for ETH? No of course. You would only use Binance or Kucoin. When Binance and Kucoin started P2P, why would people use one more extra website? The communities in LocalBitcoins and Binance are almost same which caused localbitcoins users to be diverted into Binance and Kucoun.

Oops! I now understand you.
You are implying that localbitcoins has already lost majority of her community to Binance and Kucoin. Maybe because they could not stand the competition, that is why users of CEX do not consider them a third optional force to reckon after Binance and Kucoin.
I understand that it is quite difficult to compete favorably with Cz and Co in this industry.