Decentralized Exchange Sparkswap Shuts Citing Lack of Users

Sparkswap, a decentralized exchange, announced on Tuesday its decision to shut services, citing an inadequate number of users on its platform.

“Unfortunately, we weren’t able to build a large enough audience to sustain the business over the long term,” Trey Griffith, founder of the platform, noted. “Building a cryptocurrency business, especially one that interacts with the fiat banking system, is an expensive endeavor, and as it stands right now the style of self-custody we were espousing is too niche to make our business sustainable.”

The platform already stopped taking new users along with no additional USD deposits. All trading services will be terminated on March 24, along with the shut down of the Lightning nodes by the end of this month.

The official announcement also assured that even after the termination of its services, the fiat deposits of the traders would be kept safely with the platform’s baking partner AnchorUSD.

“AnchorUSD has mobile applications for iOS and Android, and offers a High Yield USD Interest account as well as mobile crypto trading” the Medium post added. “You can also redeem your USD to your bank account. All fees for bank account redemptions via AnchorUSD will be waived until the end of April.”

Too many failing crypto ventures

Founded in 2017, the California-based company was built on the Lightning Network Lightning Network The Lightning Network is a second-layer payment protocol that operates on top of a blockchain-based cryptocurrency. It enables fast transactions among participating nodes and has been touted as a solution to the Bitcoin scalability problem.This framework features a peer-to-peer (P2P) system for making micropayments of cryptocurrency via a network of bidirectional payment channels without delegating custody of funds.Transactions on the Lightning Network are only added to the blockchain when the t The Lightning Network is a second-layer payment protocol that operates on top of a blockchain-based cryptocurrency. It enables fast transactions among participating nodes and has been touted as a solution to the Bitcoin scalability problem.This framework features a peer-to-peer (P2P) system for making micropayments of cryptocurrency via a network of bidirectional payment channels without delegating custody of funds.Transactions on the Lightning Network are only added to the blockchain when the t Read this Term and also got the attention of venture capitals, raising $3.5 million from Pantera Capital, Initialized Capital, and a few others.

Last week, Paradigm Labs, a Polychain-backed decentralized finance (DeFi) startup, shut down due to its inability to come up with a market-resilient product.

“For now, our focus as a company will move to FinTech more broadly, but we’ll be watching Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term and Lightning development closely and plan to continue to be productive members of those communities,” Sparkswap added.