Rip localbitcoins.com

[BitDane]

I have known localbitcoins for years now but I never experienced using it to buy or sell Bitcoin.  Even though I did not experience their service, it is still a bit sad to see a decade long service to shutdown.  I do not think it is because they are losing users, probably it is deeper than that why localBitcoin decided to shutdown. 

Localbitcoins lost their trading volume because they used to be a p2p BTC exchange that later began to ask for KYC from their customers, their users were people who wanted to trade only p2p, so obviously trading volume was going to drop, as their customers moved to other BTC p2p exchanges.

difficult to defend if you have to do KYC, especially just for P2p because most people who do p2p are people who avoid KYC
Even though there are many new features that support it, there is no guarantee that people will continue to transact there, especially since this is only a local exchange

You cannot use Binance P2P if you are not KYC verified same goes with other centralized exchange.  With the regulation and flow of the government action, I think KYC is inevitable, there is also a huge possibilities that these decentralized exchanges will be pressured by the government to eithr implement KYC or just shutdown.

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[Z-tight]

What was the main reason of their closure after 10 years of service, there are several platform that have also lasted enough and closing their operation shows what?
Incapability or what?

It would be great if you can read the posts that were made in this thread before you made your own post, the reason for their closure has already been posted, i also posted links to other threads where Localbitcoins closure has been discussed before, and in those threads too you can read the reason why they closed. Incapability to do what?

I've heard rumors that they were having issues with authorities, perhaps they were forced to close?

They couldn't have had issues with the authorities once they began to request for kyc, maybe before then. Localbitcoins weren't forced to close down, there was no longer enough trading volume for them to continue, and that is because their customers left them for better alternatives that are actually p2p.

[humanvelocity]

My guy probably still using internet explorer, This tragedy happened months ago but yes it was sad and very unfortunate of it happening and I highly doubt if some similar site like this one will ever exist again. I personally was never a fan of it regardless but yeah it was fun while it lasted.

[so98nn]

I have never used LocalBitcoins.com for P2P but I knew that they have been here for so long. It’s the OG of the P2P crypto trading (but correct me if I am wrong). It’s just unfortunate that they have to close because of the declining number of traders in using their platform, so nothing is really permanent.

But there are still other P2P platforms from exchanges like Binance, KuCoin, OKX, ByBit, etc., that we can still use as of the moment.

There are many other platforms but believe me localbitcoin was something purely P2P platform. Currently, the platforms you mentioned above run a p2p program based on USDT and escrow funds are mostly centralized. On the other hand, LBTC had its escrow wallet but it was up to the user when to release the funds. You used to get money deposited from one bank to another bank account. The bitcoins used to be shared over secure wallet transfer from LBTC to LBTC address. It was way simpler, secure and most importantly it was truly anonymous.

In the case of other platforms, they are using stablecoins to do this job. It means you still need to sell out your USDT for the fiat and real money to arrive in your account.

In LBTC, payment was the bank to bank (with other options too) but that was justifiable OR it was pretty clear one could easily hide whether it was bitcoin money or not. It was cool platform.

[DeathAngel]

It’s sad that they’re stopping their service, I have very good memories of using them over the years. I used them a lot in my early days to buy bitcoin. They’ve been honest & trustworthy throughout, I can only thank them for being really good in my experience.

[Z-tight]

This tragedy happened months ago but yes it was sad and very unfortunate of it happening and I highly doubt if some similar site like this one will ever exist again. I personally was never a fan of it regardless but yeah it was fun while it lasted.

Similar in what way? If it is post kyc implementation, then there are many centralized exchanges that are similar, like Binance and okx, they also offer fake p2p services, but if it is pre kyc implementation, then there are also other good p2p alternatives like bisq and others your can find here: https://kycnot.me/

[JeromeTash]

My guy probably still using internet explorer, This tragedy happened months ago but yes it was sad and very unfortunate of it happening and I highly doubt if some similar site like this one will ever exist again.

It's unfortunate that you seem not to know about any other alternative services that are actually far better than localbitcoins has been in the recent times because of their ridiculous KYC policy.

Have you had a bisq.network, HodlHodl, Agoradesk, Localmonero and many more?

[Learn Bitcoin]

But there are still other P2P platforms from exchanges like Binance, KuCoin, OKX, ByBit, etc., that we can still use as of the moment.

As Some other members already mentioned, Those Centralized exchanges don't offer you Real P2P. P2P means Peer-to-peer. But, Those exchanges act like escrow.

DEX platforms are new. so they have yet to hit the scenarios localbitcoin sellers are hit with due to lack of popularity.. however when DEX seller get popular and start doing too many wire transfers or getting scammed and treated as thieves. they too will end up shutting up shop or going official.

thus DEX wont change things, its just the same saga in repeat. where DEX is just at the beginning and yet to hit the drama

EtherDelta was the first known DEX. It's been a couple of years since DEX's are in the market. So, I won't say all DEX platforms are new. Do you think that someone from the EtherDelta team was Involved in the EtherDelta hack? Right after the hack, They have been forced to suspend their service to due the alleged hack.

For those who don't know what happened with EtherDelta, You may read this; https://techcrunch.com/2017/12/20/etherdelta-suspends-service/ After a year, SEC charges EtherDelta Founder https://www.sec.gov/news/press-release/2018-258

[virasog]

You're too late, it's has been discussed 1-2 months ago if I'm not mistaken

Must have missed it , cant find the topic.

No probelm, if you did not know about this before. Of course no one visit these sites regularly, only when one needs to use this service  one may visit the site. You can learn everything as when the local bitcoin was closed and until when one can withdraw funds etc from this link https://localbitcoins.com/service_closure/

Anyways, since we have the P2P services integrated in binance and other platforms, the localbitcoins would find it difficult to survive unless they thought of something extraordinary like starting their own exchange or something. Sometimes the business just ends up due to excessive competition.

[swiftxi]

You're too late, it's has been discussed 1-2 months ago if I'm not mistaken

Must have missed it , cant find the topic.

No probelm, if you did not know about this before. Of course no one visit these sites regularly, only when one needs to use this service  one may visit the site. You can learn everything as when the local bitcoin was closed and until when one can withdraw funds etc from this link https://localbitcoins.com/service_closure/

Anyways, since we have the P2P services integrated in binance and other platforms, the localbitcoins would find it difficult to survive unless they thought of something extraordinary like starting their own exchange or something. Sometimes the business just ends up due to excessive competition.

Something tells me its not just completition.Definitely something more behind that one.

[lixer]

Not 1-2 months ago. LocalBitcoins announced their closure on February first week. They announced that their service will close on 16 February 2023. The fact is, they were still releasing new features til January 2023. At least this makes me think the decision did not take long. The company decided to close its platform within a short time. According to them, The trading volume in LocalBitcoins has been declining for a long time, and there is no significant market demand for their service. No company will run a business that is not profitable anymore. So, they had to take this decision.

Local bitcoin has been in the exchange business for quite a long term and to see how low volume the exchange has become long before their announced closer it is clear why they were in a rush to close down the exchange.

Trading volume is one of the major ways to check and maintain liquidities and another operational cost, and any business that has low volume will have a high chance of liquidation, so anyone that has a balance on local bitcoin should have withdrawn them by now since the announced closure of the exchange stipulate the durations of time that withdrawal will be open.

The inception of P2P services offered by centralized exchanges like Binance had put them out of business. I used to use their services quite a lot back in the days when there was no Binance or other centralized exchanges with such features, and I never had any issues, but I stopped using the platform later for some reason that I don't remember right now.

Just like me, a lot of people migrated from their platform to other more convenient platforms that provided the same services with lower costs and probably much quicker and safer ways and that became the reason for their closure probably.